Instructions For Form 8038-G - Information Return For Tax-Exempt Governmental Obligations - 1993


more than 10% of the payment of principal or
Department of the Treasury
interest of the issue is either secured by an
interest in property to be used for a private
Internal Revenue Service
business use (or payments in respect of such
property), or is to be derived from payments
in respect of property (or borrowed money)
Instructions for Form 8038-G
used for a private business use. An obligation
is also considered a private activity bond if
the amount of the proceeds to be used to
(Rev. May 1993)
make or finance loans (other than loans
described in section 141(c)(2)) to certain
Information Return for Tax-Exempt Governmental
persons exceeds the smaller of 5% of the
proceeds or $5 million. Private activity bonds
should be reported on Form 8038,
Information Return for Tax-Exempt Private
A separate Form 8038-G must be filed for each issue of obligations.
Activity Bond Issues.
(Note: Use For m 8038-GC if the issue price is under $100,000. )
Issue.—Generally, do not treat separate
(Section references are to the Internal Revenue Code unless otherwise noted. )
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
Paperwork Reduction Act Notice
Governmental Bond Issues, Leases and
transaction (or series of related transactions).
Installment Sales. Issuers use Form 8038-T,
With respect to draw-down loans, all
We ask for the information on this form to
Arbitrage Rebate and Penalty in Lieu of
amounts reasonably expected to be
carry out the Internal Revenue laws of the
Arbitrage Rebate, to pay the arbitrage rebate
advanced within 3 years of the date of the
United States. You are required to give us the
to the United States and to pay a penalty in
first draw may be treated as part of the same
information. We need it to ensure that you are
lieu of arbitrage rebate.
issue if the draws are equally and ratably
complying with these laws.
secured by the same loan agreement and are
When To File
The time needed to complete and file this
pursuant to a common financing
form varies depending on individual
File Form 8038-G on or before the 15th day
arrangement. All obligations that are issued
circumstances. The estimated average time
of the 2nd calendar month after the close of
under a single finance lease or installment
the calendar quarter in which the issue is
purchase agreement may be treated as part
Learning about the
issued. Complete Form 8038-G based on the
of the same issue if all of the property
law or the form
1 hr., 53 min.
facts as of the issue date.
covered by that agreement is reasonably
Preparing, copying,
Late filing.—An issuer may be granted an
expected to be delivered within 3 years of the
assembling, and
extension of time to file Form 8038-G under
date of issue of the first obligation.
sending the form to
Section 3 of Rev. Proc. 88-10, 1988-1 C.B.
Arbitrage rebate.—Generally, interest on a
the IRS
2 hr., 12 min.
635, if it is determined that the failure to file
state or local bond is not tax exempt unless
on time is not due to willful neglect. Send a
If you have comments concerning the
the issuer of the bond rebates to the United
late Form 8038-G to: Internal Revenue
accuracy of this time estimate or suggestions
States arbitrage profits earned from investing
Service, Philadelphia Service Center,
for making this form more simple, we would
proceeds of the bond in higher yielding
Statistics of Income Unit, P:DA:Unit F-SOI,
be happy to hear from you. You can write to
nonpurpose investments. See section 148(f).
Philadelphia, PA 19255, Stop #335. Type or
both the Internal Revenue Service,
Construction issue.—A construction issue is
print at the top of the form, “This Statement
Attention: Reports Clearance Officer, T:FP,
an issue of tax-exempt bonds if (a) at least
Is Submitted in Accordance with Rev. Proc.
Washington, DC 20224; and the Office of
75% of the available construction proceeds
88-10.” Attach to the Form 8038-G a letter
Management and Budget, Paperwork
of the issue are to be used for construction
explaining why Form 8038-G was not
Reduction Project (1545-0720), Washington,
expenditures with respect to property that is
submitted to the IRS on time. Also indicate
DC 20503. DO NOT send the form to either
to be owned by a governmental unit or a
whether the bond issue in question is under
of these offices. Instead, see Where To File
501(c)(3) organization, and (b) all of the bonds
examination by the IRS. Do not submit copies
that are part of the issue are qualified
of the trust indenture or other bond
501(c)(3) bonds; bonds that are not private
General Instructions
activity bonds; or private activity bonds
Where To File
issued to finance property to be owned by a
Purpose of Form
governmental unit or a 501(c)(3) organization.
File Form 8038-G with the Internal Revenue
Form 8038-G is used by issuers of
In lieu of rebating any arbitrage that may be
Service Center, Philadelphia, PA 19255.
tax-exempt governmental obligations to
owed to the United States, the issuer of a
provide the IRS with the information required
construction issue may make an irrevocable
Rounding Off to Whole Dollars
by section 149(e) and to monitor the
election to pay a penalty. The penalty is equal
You may show the money items on this
requirements of sections 141 through 150.
to 1
% of the amount of construction
return as whole-dollar amounts. To do so,
Complete Parts II through VI on the basis of
proceeds that do not meet certain spending
drop any amount less than 50 cents and
available information and reasonable
requirements. See section 148(f)(4)(C).
increase any amount from 50 cents through
expectations as of the date the issue is
99 cents to the next higher dollar.
Specific Instructions
issued. If an item does not apply to the issue
you are reporting, enter “N/A” in the space
Part I—Reporting Authority
provided for the item.
A tax-exempt obligation is an obligation
When this form went to print, the Treasury
Amended Return.—If you are filing an
on which the interest is excluded from
Department and the Internal Revenue Service
amended Form 8038-G, check the amended
income under the Internal Revenue Code. A
had several proposed regulations in process,
return box and complete Part I and only
tax-exempt obligation is not limited to the
which, if adopted, could alter the information
those parts of Form 8038-G you are
formal issuance of bonds. It also includes
being requested.
amending. Use the same report number (line
installment purchase agreements and
4) as was used for the original report. Do not
Who Must File
financial leases.
amend the estimated amounts previously
A tax-exempt governmental bond is a
Issuers must file a Form 8038-G for each
reported once the actual amounts are
tax-exempt bond that is not a private activity
issue of tax-exempt governmental obligations
issued after December 31, 1986, if the price
Line 1.—The issuer’s name is the name of
(line 20, column (c)) of the issue is $100,000
A private activity bond is generally an
the entity issuing the obligations, not the
or more. If the issue price is less than
obligation issued as part of an issue of which
name of the entity receiving the benefit of the
$100,000, issuers must file Form 8038-GC,
(a) more than 10% of the proceeds are to be
financing. For a lease or installment sale, the
Information Return for Small Tax-Exempt
used for any private business use; and (b)
issuer is the lessee or the purchaser.
Cat. No. 63774D


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