Instructions For Form 8038-G (Rev. May 1995) - Information Return For Tax-Exempt Governmental Obligations


Information Return for Tax-Exempt Private
Department of the Treasury
Activity Bond Issues.
Issue.—Generally, do not treat separate
Internal Revenue Service
obligations as part of the same issue unless
the obligations are issued by the same issuer,
on the same date, and pursuant to a single
Instructions for Form 8038-G
transaction (or series of related transactions).
In cases of draw-down loans, all amounts
reasonably expected to be advanced within 3
(Rev. May 1995)
years of the date of the first draw may be
treated as part of the same issue if the draws
Information Return for Tax-Exempt Governmental
are equally and ratably secured by the same
loan agreement and are pursuant to a
common financing arrangement. All
obligations that are issued under a single
A separate Form 8038-G must be filed for each issue of obligations.
finance lease or installment purchase
agreement may be treated as part of the
(Note: Use Form 8038-GC if the issue pr ice is under $100,000. )
same issue if all of the property covered by
Section references are to the Internal Revenue Code unless otherwise noted.
that agreement is reasonably expected to be
delivered within 3 years of the date of issue
of the first obligation.
Paperwork Reduction Act Notice
issued. Complete Form 8038-G based on the
Arbitrage rebate.—Generally, interest on a
facts as of the issue date.
We ask for the information on this form to
state or local bond is not tax exempt unless
Late filing.—An issuer may be granted an
carry out the Internal Revenue laws of the
the issuer of the bond rebates to the United
extension of time to file Form 8038-G under
United States. You are required to give us the
States arbitrage profits earned from investing
Section 3 of Rev. Proc. 88-10, 1988-1 C.B.
information. We need it to ensure that you are
proceeds of the bond in higher yielding
635, if it is determined that the failure to file
complying with these laws.
nonpurpose investments. See section 148(f).
on time is not due to willful neglect. Send a
The time needed to complete and file this
Construction issue.—A construction issue is
late Form 8038-G to: Internal Revenue
form varies depending on individual
an issue of tax-exempt bonds if (1) at least
Service, Philadelphia Service Center,
circumstances. The estimated average time
75% of the available construction proceeds
Statistics of Income Unit, P:DA:Unit F-SOI,
of the issue are to be used for construction
Philadelphia, PA 19255, Stop #335. Type or
expenditures with respect to property that is
Learning about the
print at the top of the form, “This Statement
to be owned by a governmental unit or a
law or the form
2 hr., 29 min.
Is Submitted in Accordance with Rev. Proc.
501(c)(3) organization, and (2) all of the bonds
88-10.” Attach to the Form 8038-G a letter
Preparing, copying,
that are part of the issue are qualified
explaining why Form 8038-G was not
assembling, and
501(c)(3) bonds; bonds that are not private
submitted to the IRS on time. Also indicate
sending the form to
activity bonds; or private activity bonds
whether the bond issue in question is under
the IRS
2 hr., 51 min.
issued to finance property to be owned by a
examination by the IRS. Do not submit copies
governmental unit or a 501(c)(3) organization.
If you have comments concerning the
of the trust indenture or other bond
accuracy of these time estimates or
In lieu of rebating any arbitrage that may be
suggestions for making this form simpler, we
owed to the United States, the issuer of a
would be happy to hear from you. You can
Where To File
construction issue may make an irrevocable
write to the Internal Revenue Service,
election to pay a penalty. The penalty is equal
File Form 8038-G with the Internal Revenue
% of the amount of construction
Attention: Tax Forms Committee, PC:FP,
to 1
Service Center, Philadelphia, PA 19255.
Washington, DC 20224. DO NOT send the
proceeds that do not meet certain spending
requirements. See section 148(f)(4)(C).
form to this address. Instead, see Where To
Rounding Off to Whole Dollars
File below.
Specific Instructions
You may show the money items on this
General Instructions
return as whole-dollar amounts. To do so,
Part I—Reporting Authority
drop any amount less than 50 cents and
Purpose of Form
increase any amount from 50 cents through
Amended Return.—If you are filing an
99 cents to the next higher dollar.
Form 8038-G is used by issuers of
amended Form 8038-G, check the amended
tax-exempt governmental obligations to
return box and complete Part I and only
those parts of Form 8038-G you are
provide the IRS with the information required
A “tax-exempt obligation” is an obligation
amending. Use the same report number (line
by section 149(e) and to monitor the
on which the interest is excluded from
requirements of sections 141 through 150.
4) as was used for the original report. Do not
income under the Internal Revenue Code. A
amend the estimated amounts previously
Complete Parts II through VI on the basis of
tax-exempt obligation is not limited to the
reported once the actual amounts are
available information and reasonable
formal issuance of bonds. It also includes
expectations as of the date the issue is
installment purchase agreements and
issued. If an item does not apply to the issue
Line 1.—The issuer’s name is the name of
financial leases.
you are reporting, write “N/A” in the space
the entity issuing the obligations, not the
provided for the item.
A “tax-exempt governmental bond” is a
name of the entity receiving the benefit of the
tax-exempt bond that is not a private activity
financing. For a lease or installment sale, the
Who Must File
issuer is the lessee or the purchaser.
Issuers must file a Form 8038-G for each
A “private activity bond” is generally an
Line 2.—An issuer that does not have an EIN
issue of tax-exempt governmental obligations
obligation issued as part of an issue of which
should apply for one on Form SS-4,
issued after December 31, 1986, if the price
(a) more than 10% of the proceeds are to be
Application for Employer Identification
(line 20, column (c)) of the issue is $100,000
used for any private business use; and (b)
Number. This form may be obtained from
or more. If the issue price is less than
more than 10% of the payment of principal or
most IRS and Social Security Administration
$100,000, issuers must file Form 8038-GC,
interest of the issue is either secured by an
offices. File Form SS-4 according to the
Information Return for Small Tax-Exempt
interest in property to be used for a private
instructions on that form. If the EIN has not
Governmental Bond Issues, Leases, and
business use (or payments in respect of such
been received by the due date for Form
Installment Sales. Issuers use Form 8038-T,
property), or is to be derived from payments
8038-G, write “Applied for” in the space for
Arbitrage Rebate and Penalty in Lieu of
in respect of property (or borrowed money)
the EIN.
Arbitrage Rebate, to pay the arbitrage rebate
used for a private business use. An obligation
Line 4.—Number reports consecutively based
to the United States, and to pay a penalty in
is also considered a private activity bond if
on the filing date (not the date of issue). For
lieu of arbitrage rebate.
the amount of the proceeds to be used to
example, if the issuer filed two Forms 8038-G
make or finance loans (other than loans
When To File
in the 1995 calendar year, the “report
described in section 141(c)(2)) to certain
number” for the third Form 8038-G would be
persons exceeds the smaller of 5% of the
File Form 8038-G on or before the 15th day
“G1995-3.” If an issuer (e.g., a state) issues
proceeds or $5 million. Private activity bonds
of the 2nd calendar month after the close of
obligations through many departments or
should be reported on Form 8038,
the calendar quarter in which the issue is
Cat. No. 63774D


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