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Department of the Treasury
Internal Revenue Service
Instructions for Form 8038-G

(Rev. October 2021)
Information Return for Tax-Exempt Governmental Bonds

Section references are to the Internal Revenue Where To File agreement, or financial lease, on which
Code unless otherwise noted. the interest is excluded from income under
File Form 8038-G and any attachments at
the following address. section 103.
Future Developments
Tax-exempt governmental bond. A
For the latest information about Department of the Treasury tax-exempt bond that is not a private
developments related to Form 8038-G and Internal Revenue Service Center activity bond (see next) is a tax-exempt
its instructions, such as legislation Ogden, UT 84201 governmental bond. This includes a bond
enacted after they were published, go to issued by a qualified volunteer fire
IRS.gov/Form8038G. department under section 150(e).
Private delivery services. You can use
certain private delivery services (PDS) Private activity bond. This includes a
General Instructions designated by the IRS to meet the “timely bond issued as part of an issue in which:
mailing as timely filing” rule for tax returns. • More than 10% of the proceeds are to
Purpose of Form Go to IRS.gov/PDS for the current list of be used for any private activity
Form 8038-G is used by issuers of designated services. business use; and
tax-exempt governmental bonds to The PDS can tell you how to get written • More than 10% of the payment of
provide the IRS with the information proof of the mailing date. principal or interest of the issue is
required by section 149(e) and to monitor either (a) secured by an interest in
For the IRS mailing address to use if
compliance with the requirements of property to be used for a private
you're using PDS, go to IRS.gov/
sections 141 through 150. business use (or payments for such
PDSstreetAddresses.
property), or (b) to be derived from
Who Must File PDS can’t deliver items to P.O. payments for property (or borrowed
boxes. You must use the U.S.
IF the issue price THEN, for tax-exempt CAUTION! Postal Service to mail any item to money) used for a private business
use.
(line 21, column (b)) governmental bonds an IRS P.O. box address. It also includes a bond, the proceeds of
is... issued after December
31, 1986, issuers must which (a) are to be used directly or
file... Other Forms That May Be indirectly to make or finance loans (other
$100,000 or more a separate Form 8038-G Required than loans described in section 141(c)(2))
for each issue. For rebating arbitrage (or paying a penalty to persons other than governmental units,
in lieu of arbitrage rebate) to the federal and (b) exceeds the lesser of 5% of the
less than $100,000 Form 8038-GC, government, use Form 8038-T, Arbitrage proceeds or $5 million.
Information Return for
Small Tax-Exempt Rebate, Yield Reduction and Penalty in Issue price. The issue price of bonds is
Governmental Bond Lieu of Arbitrage Rebate. generally determined under Regulations
Issues, Leases, and For private activity bonds, use Form section 1.148-1(f). Thus, when issued for
Installment Sales. 8038, Information Return for Tax-Exempt cash, the issue price is the first price at
Private Activity Bond Issues. which a substantial amount of the bonds
are sold to the public. To determine the
Rounding to Whole Dollars
When To File issue price of a bond issued for property,
You may show the money items on this see sections 1273 and 1274 and the
File Form 8038-G on or before the 15th return as whole-dollar amounts. To round, related regulations.
day of the 2nd calendar month after the drop amounts under 50 cents and
close of the calendar quarter in which the increase amounts from 50 to 99 cents to Issue. Generally, bonds are treated as
bond is issued. Form 8038-G may not be the next dollar (for example, $1.39 part of the same issue if they are issued by
filed before the issue date and must be becomes $1 and $2.50 becomes $3). the same issuer, on the same date, and in
completed based on the facts as of the a single transaction, or a series of related
issue date. If two or more amounts must be added transactions (see Regulations section
to figure the amount to enter on a line, 1.149(e)-1(e)(2)). However, bonds issued
Late filing. An issuer may be granted an include cents when adding the amounts during the same calendar year (a) under a
extension of time to file Form 8038-G and round off only the total. loan agreement under which amounts are
under section 3 of Rev. Proc. 2002-48,
2002-37 I.R.B. 531, if it is determined that Definitions to be advanced periodically (a “draw-down
loan”), or (b) with a term not exceeding
the failure to file timely is not due to willful Bond. This is any obligation, including 270 days, may be treated as part of the
neglect. Type or print at the top of the form bond, note, commercial paper, installment same issue if the bonds are equally and
“Request for Relief under section 3 of Rev. purchase agreement, or financing lease. ratably secured under a single indenture
Proc. 2002-48” and attach a letter
explaining why Form 8038-G was not Taxable bond. This is any bond the or loan agreement and are issued under a
submitted to the IRS on time. Also indicate interest on which is not excludable from common financing arrangement (for
whether the bond issue in question is gross income under section 103. Taxable example, under the same official
under examination by the IRS. Do not bonds include tax credit bonds and direct statement periodically updated to reflect
submit copies of the trust indenture or pay bonds. changing factual circumstances). Also, for
bonds issued under a draw-down loan that
other bond documents. See Where To File Tax-exempt bond. This is any obligation, meet the requirements of the preceding
next. including a bond, installment purchase

Sep 21, 2021 Cat. No. 63774D

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sentence, bonds issued during different are filing to correct errors or change a Line 7. The date of issue is generally the
calendar years may be treated as part of previously filed return, check the first date on which the issuer physically
the same issue if all of the amounts to be Amended Return box in the heading of the exchanges any bond included in the issue
advanced under the draw-down loan are form. for the underwriter's (or other purchaser's)
reasonably expected to be advanced The amended return must provide all funds. For a lease or installment sale,
within 3 years of the date of issue of the the information reported on the original enter the date interest starts to accrue in
first bond. Likewise, bonds (other than return, in addition to the new or corrected an MM/DD/YYYY format.
private activity bonds) issued under a information. Attach an explanation of the
Line 8. If there is no name of the issue,
single agreement that is in the form of a reason for the amended return and write
please provide other identification of the
lease or installment sale may be treated across the top, “Amended Return
issue.
as part of the same issue if all of the Explanation.” Failure to attach an
property covered by that agreement is explanation may result in a delay in Line 9. Enter the CUSIP (Committee on
reasonably expected to be delivered processing the form. Uniform Securities Identification
within 3 years of the date of issue of the Procedures) number of the bond with the
first bond. Line 1. The issuer's name is the name of
latest maturity. If the issue does not have a
the entity issuing the bonds, not the name
CUSIP number, write “None.”
Arbitrage rebate. Generally, interest on of the entity receiving the benefit of the
a state or local bond is not tax exempt financing. For a lease or installment sale, Line 10a. Enter the name and title of the
unless the issuer of the bond rebates to the issuer is the lessee or the purchaser. officer or other employee of the issuer
the United States arbitrage profits earned whom the IRS may call for more
from investing proceeds of the bond in Line 2. An issuer that does not have an
information. If the issuer wishes to
higher yielding nonpurpose investments. employer identification number (EIN)
designate a person other than an officer or
See section 148(f). should apply online by visiting the IRS
other employee of the issuer (including a
website at IRS.gov/EIN. The organization
legal representative or paid preparer)
Construction issue. This is an issue of may also apply for an EIN by faxing or whom the IRS may call for more
tax-exempt bonds that meets both of the mailing Form SS-4 to the IRS.
following conditions. information about the return, enter the
Line 3a. If the issuer wishes to authorize name, title, and telephone number of such
1. At least 75% of the available a person other than an officer or other person on lines 3a and 3b.
construction proceeds are to be used employee of the issuer (including a legal
Complete lines 10a and 10b even
for construction expenditures with representative or paid preparer) to
if you complete lines 3a and 3b.
respect to property to be owned by a communicate with the IRS and whom the CAUTION!
governmental unit or a section 501(c) IRS may contact about this return
(3) organization. (including in writing or by telephone), enter Part II—Type of Issue
2. All the bonds that are part of the issue the name of such person here. The person
are qualified 501(c)(3) bonds, bonds listed on line 3a must be an individual. Do Elections referred to in Part II are
that are not private activity bonds, or not enter the name and title of an officer or ! made on the original bond
private activity bonds issued to other employee of the issuer here (use CAUTION documents, not on this form.
finance property to be owned by a line 10a for that purpose). Identify the type of bonds issued by
governmental unit or a section 501(c) entering the issue price in the box
(3) organization. Note. By authorizing a person other than
corresponding to the type of bond (see
an authorized officer or other employee of
Issue price under Definitions, earlier).
In lieu of rebating any arbitrage that the issuer to communicate with the IRS
Attach a schedule listing names and EINs
may be owed to the United States, the and whom the IRS may contact about this
of organizations that are to use proceeds
issuer of a construction issue may make return, the issuer authorizes the IRS to
of these bonds, if different from those of
an irrevocable election to pay a penalty. communicate directly with the individual
the issuer, include a brief summary of the
The penalty is equal to 1 / % of the 1 2 entered on line 3a and consents to
use and indicate whether or not such user
amount of the available construction disclose the issuer's return information to
is a governmental or nongovernmental
proceeds of the issue that do not meet that individual, as necessary, to process
entity.
certain spending requirements as of the this return.
close of each 6-month period after the Line 18. Enter a description of the issue
Lines 4 and 6. If you listed an individual
date the bonds were issued. See section in the space provided.
148(f)(4)(C) and the Instructions for Form on line 3a to communicate with the IRS
and whom the IRS may contact about this Line 19. If the bonds are short-term tax
8038-T.
return, enter the number and street (or anticipation notes or warrants (TANs) or
Pooled financing issue. This is an issue P.O. box if mail is not delivered to street short-term revenue anticipation notes or
of tax-exempt bonds, the proceeds of address), city, town, or post office, state, warrants (RANs), check box 19a. If the
which are to be used to finance purpose and ZIP code of that person. Otherwise, bonds are short-term bond anticipation
investments representing conduit loans to enter the issuer's number and street (or notes (BANs), issued with the expectation
two or more conduit borrowers, unless P.O. box if mail is not delivered to street that they will be refunded with the
those conduit loans are to be used to address), city, town, or post office, state, proceeds of long-term bonds at some
finance a single capital project. and ZIP code. future date, check box 19b. Do not check
both boxes.
Note. The address entered on lines 4 and
Specific Instructions 6 is the address the IRS will use for all Line 20. Check this box if property other
written communications regarding the than cash is exchanged for the bond, for
Part I—Reporting Authority processing of this return, including any example, acquiring a police car, a fire
Amended return. An issuer may file an notices. truck, or telephone equipment through a
series of monthly payments. (This type of
amended return to change or add to the Line 5. This line is for IRS use only. Do bond is sometimes referred to as a
information reported on a previously filed not make any entries in this box. “municipal lease.”) Also check this box if
return for the same date of issue. If you real property is directly acquired in

-2- Instructions for Form 8038-G (Rev. 10-2021)

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exchange for a bond to make periodic example, bond insurance premiums and Line 40. Check this box if the issue is a
payments of interest and principal. Do not certain fees for letters of credit). construction issue and an irrevocable
check this box if the proceeds of the bond election to pay a penalty in lieu of
Line 26. Enter the amount of proceeds
are received in the form of cash, even if arbitrage rebate has been made on or
that will be allocated to such a fund.
the term “lease” is used in the title of the before the date the bonds were issued.
issue. Line 27. Enter the amount of the The penalty is payable with a Form 8038-T
proceeds that will be used to pay principal, for each 6-month period after the date the
Part III—Description of Bonds interest, or call premium on any bonds are issued. Do not make any
Line 21. For column (a), the final maturity tax-exempt bonds, including proceeds payment of penalty in lieu of arbitrage
date is the last date the issuer must that will be used to fund an escrow rebate with this form. See Rev. Proc.
redeem the entire issue. account for this purpose. 92-22, 1992-1 C.B. 736, for rules
For column (b), see Issue price under Line 28. Enter the amount of the regarding the “election document.”
Definitions, earlier. proceeds that will be used to pay principal, Line 41a. Check this box if the issuer
For column (c), the stated redemption interest, or call premium on any taxable has identified a hedge on its books and
price at maturity of the entire issue is the bonds, including proceeds that will be records according to Regulations sections
sum of the stated redemption prices at used to fund an escrow account for this 1.148-4(h)(2)(viii) and 1.148-4(h)(5)(iv)
maturity of each bond issued as part of the purpose. that permit an issuer of tax-exempt bonds
issue. For a lease or installment sale, write Part V—Description of to identify a hedge for it to be included in
“N/A” in column (c). yield calculations for figuring arbitrage.
Refunded Bonds
For column (d), the weighted average Line 42. In determining if the issuer has
maturity is the sum of the products of the Complete this part only if the bonds are to
issue price of each maturity and the be used to refund a prior issue of super-integrated a hedge, apply the rules
number of years to maturity (determined tax-exempt bonds or taxable bonds. For a of Regulations section 1.148-4(h)(4). If the
separately for each maturity and by taking lease or installment sale, write “N/A” in the hedge is super-integrated, check the box.
into account mandatory redemptions), space to the right of the title for Part V. Line 43. If the issuer takes a “deliberate
divided by the issue price of the entire Lines 31 and 32. The remaining action” after the issue date that causes the
issue (from line 21, column (b)). For a weighted average maturity is determined conditions of the private business tests or
lease or installment sale, enter instead the without regard to the refunding. The the private loan financing test to be met,
total number of years the lease or weighted average maturity is determined then such issue is also an issue of private
installment sale will be outstanding. in the same manner as on line 21, column activity bonds. Regulations section
For column (e), the yield, as defined in (d). 1.141-2(d)(3) defines a deliberate action
as any action taken by the issuer that is
section 148(h), is the discount rate that, Line 34. If more than a single issue of within its control regardless of whether
when used to figure the present value of tax-exempt bonds or taxable bonds will be there is intent to violate such tests.
all payments of principal and interest to be refunded, enter the date of issue for each Regulations section 1.141-12 explains the
paid on the bond, produces an amount refunded issue. Enter the date in an conditions to taking remedial action that
equal to the purchase price, including MM/DD/YYYY format. prevent an action that causes an issue to
accrued interest. See Regulations section meet the private business tests or private
1.148-4 for specific rules to figure the yield Part VI—Miscellaneous loan financing test from being treated as a
on an issue. If the issue is a variable rate Line 35. An allocation of volume cap is deliberate action. Check the box if the
issue, write “VR” as the yield of the issue. required if the nonqualified amount for the issuer has established written procedures
For other than variable rate issues, carry issue is more than $15 million but is not to ensure timely remedial action for all
the yield out to four decimal places (for more than the amount that would cause nonqualified bonds according to
example, 5.3125%). If the issue is a lease the issue to be private activity bonds. Regulations section 1.141-12 or other
or installment sale, enter the effective rate remedial actions authorized by the
of interest being paid. Line 36. If any portion of the gross Commissioner under Regulations section
proceeds of the issue is or will be invested 1.141-12(h).
Part IV—Uses of Proceeds of in a guaranteed investment contract (GIC),
Bond Issue as defined in Regulations section Line 44. Check the box if the issuer has
For a lease or installment sale, write “N/A” 1.148-1(b), enter the amount of the gross established written procedures to monitor
in the space to the right of the title for Part proceeds so invested, as well as the final compliance with the arbitrage, yield
IV. maturity date of the GIC and the name of restriction, and rebate requirements of
the provider of such contract. section 148.
Line 22. Enter the amount of proceeds
that will be used to pay interest on the Line 37. If the issue is a pooled financing Line 45a. Check the box if some part of
issue accruing prior to the date of issue. issue (as defined under Pooled financing the proceeds was used to reimburse
For definition of date of issue, see these issue in Definitions, earlier), enter the expenditures. Figure and then enter the
instructions, line 7. amount of the proceeds used to make amount of proceeds that are used to
loans to other governmental units, the reimburse the issuer for amounts paid for
Line 24. Enter the amount of the interest on which is tax exempt. a qualified purpose prior to the issuance of
proceeds that will be used to pay bond the bonds. See Regulations section
issuance costs, including fees for trustees Line 38. If the issue is a loan of proceeds 1.150-2.
and bond counsel. If no bond proceeds from a pooled financing issue (as defined
will be used to pay bond issuance costs, under Pooled financing issue in Line 45b. Subject to certain exceptions
enter zero. Do not leave this line blank. Definitions, earlier), check the box and under Regulations section 1.150-2(f), an
where asked for the date of issue, EIN, issuer must adopt an official intent, as
Line 25. Enter the amount of the and name of the issuer of the master pool described in Regulations section
proceeds that will be used to pay fees for bond, enter the date of issue, EIN, and 1.150-2(e), to reimburse itself for
credit enhancement that are taken into name of the issuer of the pooled financing preissuance expenditures within 60 days
account in determining the yield on the issue. after payment of the original expenditure.
issue for purposes of section 148(h) (for

Instructions for Form 8038-G (Rev. 10-2021) -3-

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Enter the date the official intent was           prepares the return but does not charge       to a form or its instructions must be 
adopted.                                         the organization should not sign the          retained as long as their contents may 
                                                 return. Certain others who prepare the        become material in the administration of 
Signature and Consent                            return should not sign. For example, a        any Internal Revenue law. Generally, tax 
An authorized representative of the issuer       regular, full-time employee of the issuer,    returns and return information are 
must sign Form 8038-G and any                    such as a clerk, secretary, etc., should not  confidential, as required by section 6103.
applicable certification. Also print the         sign.
name and title of the person signing Form                                                      The time needed to complete and file 
8038-G. The authorized representative of          Generally, anyone who is paid to             this form will vary depending on the 
the issuer signing this form must have the       prepare a return must sign it and fill in the individual circumstances. The estimated 
authority to consent to the disclosure of        other blanks in the Paid Preparer Use Only    burden for tax-exempt organizations filing 
the issuer's return information, as              area of the return.                           this form is approved under OMB control 
necessary to process this return, to the          The paid preparer must:                      number 1545-0047 and is included in the 
person(s) that have been designated in             Sign the return in the space provided       estimates shown in the instructions for 
                                                 •
Form 8038-G.                                       for the preparer's signature (a             their information return.
Note. If the issuer in Part I, lines 3a and        facsimile signature is acceptable),         If you have suggestions for making this 
3b, authorizes the IRS to communicate            • Enter the preparer information, and         form simpler, we would be happy to hear 
(including in writing and by telephone) with     • Give a copy of the return to the issuer.    from you. You can send us comments 
a person other than an officer or other                                                        through IRS.gov/FormComments.
                                                 Paperwork Reduction Act Notice.      We 
employee of the issuer, by signing this 
                                                 ask for the information on this form to carry 
form, the issuer's authorized                                                                  Or you can write to:
                                                 out the Internal Revenue laws of the 
representative consents to the disclosure 
                                                 United States. You are required to give us 
of the issuer's return information, as                                                         Internal Revenue Service
                                                 the information. We need it to ensure that 
necessary to process this return, to such                                                      Tax Forms and Publications
                                                 you are complying with these laws.
person.                                                                                        1111 Constitution Ave. NW, IR-6526
                                                  You are not required to provide the          Washington, DC 20224
Paid Preparer
                                                 information requested on a form that is 
If an authorized officer of the issuer filled in subject to the Paperwork Reduction Act        Do not send the form to this address. 
this return, the paid preparer's space           unless the form displays a valid OMB          Instead, see Where To File, earlier.
should remain blank. Anyone who                  control number. Books or records relating 

                                                                     -4-                 Instructions for Form 8038-G (Rev. 10-2021)

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