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

(Rev. September 2018)
Information Return for Tax-Exempt Governmental Bonds

Section references are to the Internal Revenue Who Must File PDS can’t deliver items to P.O.
Code unless otherwise noted. ! boxes. You must use the U.S.
IF the issue price THEN, for tax-exempt CAUTION Postal Service to mail any item to
Future Developments (line 21, column (b)) governmental bonds an IRS P.O. box address.
For the latest information about is... issued after December
developments related to Form 8038-G and 31, 1986, issuers must Other Forms That May Be
its instructions, such as legislation file... Required
enacted after they were published, go to $100,000 or more a separate Form 8038-G For rebating arbitrage (or paying a penalty
IRS.gov/Form8038G. for each issue. in lieu of arbitrage rebate) to the federal
less than $100,000 Form 8038-GC, government, use Form 8038-T, Arbitrage
What’s New Information Return for Rebate, Yield Reduction and Penalty in
The Tax Cuts and Jobs Act (P.L. 115-97) Small Tax-Exempt Lieu of Arbitrage Rebate.
repealed the exclusion from gross income Governmental Bond
for interest on bonds issued to advance Issues, Leases, and For private activity bonds, use Form
refund tax-exempt bonds. The repeal Installment Sales. 8038, Information Return for Tax-Exempt
applies to advance refunding bonds Private Activity Bond Issues.
issued after 2017. A bond is an advance
Rounding to Whole Dollars
refunding bond if it is issued more than 90 When To File
days before the redemption of the You can round off cents to whole dollars. If
refunded bonds. File Form 8038-G on or before the 15th you do round to whole dollars, you must
day of the 2nd calendar month after the round all amounts. To round, drop
The Tax Cuts and Jobs Act also close of the calendar quarter in which the amounts under 50 cents and increase
repealed the authority to issue tax-credit bond is issued. Form 8038-G may not be amounts from 50 to 99 cents to the next
bonds and direct-pay bonds. The repeal filed before the issue date and must be dollar (for example, $1.39 becomes $1
applies to qualified forestry conservation completed based on the facts as of the and $2.50 becomes $3).
bonds, new clean renewable energy issue date.
bonds, qualified energy conservation If two or more amounts must be added
bonds, qualified zone academy bonds, Late filing. An issuer may be granted an
and qualified school construction bonds extension of time to file Form 8038-G to figure the amount to enter on a line,
issued after 2017. The authority to issue under section 3 of Rev. Proc. 2002-48, include cents when adding the amounts
recovery zone economic development 2002-37 I.R.B. 531, if it is determined that and round off only the total.
bonds and build America bonds expired the failure to file timely is not due to willful Definitions
on January 1, 2011. neglect. Type or print at the top of the form
“Request for Relief under section 3 of Rev. Bond. This is any obligation, including
Note. The creation of an advance Proc. 2002-48” and attach a letter bond, note, commercial paper, installment
refunding escrow account to advance explaining why Form 8038-G was not purchase agreement, or financing lease.
refund tax-credit bonds and/or direct-pay submitted to the IRS on time. Also indicate Taxable bond. This is any bond the
bonds may result in the reissuance of the whether the bond issue in question is interest on which is not excludable from
bonds and the loss of the tax benefits. under examination by the IRS. Do not gross income under section 103. Taxable
submit copies of the trust indenture or bonds include tax credit bonds and direct
other bond documents. See Where To File pay bonds.
General Instructions next.
Tax-exempt bond. This is any obligation,
Purpose of Form Where To File including a bond, installment purchase
Form 8038-G is used by issuers of File Form 8038-G, and any attachments, agreement, or financial lease, on which
tax-exempt governmental bonds to with the Department of the Treasury, the interest is excluded from income under
provide the IRS with the information Internal Revenue Service Center, Ogden, section 103.
required by section 149(e) and to monitor UT 84201. Tax-exempt governmental bond. A
compliance with the requirements of
sections 141 through 150. Private delivery services. You can use tax-exempt bond that is not a private
certain private delivery services (PDS) activity bond (see next) is a tax-exempt
designated by the IRS to meet the “timely governmental bond. This includes a bond
mailing as timely filing” rule for tax returns. issued by a qualified volunteer fire
Go to IRS.gov/PDS for the current list of department under section 150(e).
designated services. Private activity bond. This includes a
The PDS can tell you how to get written bond issued as part of an issue in which:
proof of the mailing date. • More than 10% of the proceeds are to
For the IRS mailing address to use if be used for any private activity business
you're using PDS, go to IRS.gov/ use; and
PDSstreetAddresses. • More than 10% of the payment of
principal or interest of the issue is either
(a) secured by an interest in property to be
used for a private business use (or

Sep 17, 2018 Cat. No. 63774D

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payments for such property), or (b) to be    construction expenditures with respect to     not enter the name and title of an officer or 
derived from payments for property (or       property to be owned by a governmental        other employee of the issuer here (use 
borrowed money) used for a private           unit or a section 501(c)(3) organization.     line 10a for that purpose).
business use.                                2. All the bonds that are part of the 
It also includes a bond, the proceeds of     issue are qualified 501(c)(3) bonds, bonds    Note.  By authorizing a person other than 
which (a) are to be used directly or         that are not private activity bonds, or       an authorized officer or other employee of 
indirectly to make or finance loans (other   private activity bonds issued to finance      the issuer to communicate with the IRS 
than loans described in section 141(c)(2))   property to be owned by a governmental        and whom the IRS may contact about this 
to persons other than governmental units,    unit or a section 501(c)(3) organization.     return, the issuer authorizes the IRS to 
and (b) exceeds the lesser of 5% of the                                                    communicate directly with the individual 
proceeds or $5 million.                      In lieu of rebating any arbitrage that        entered on line 3a and consents to 
                                             may be owed to the United States, the         disclose the issuer's return information to 
Issue price.  The issue price of bonds is    issuer of a construction issue may make       that individual, as necessary, to process 
generally determined under Regulations       an irrevocable election to pay a penalty.     this return.
section 1.148-1(f). Thus, when issued for    The penalty is equal to 1 / % of the 1 2
                                                                                           Lines 4 and 6. If you listed an individual 
cash, the issue price is the first price at  amount of construction proceeds that do 
                                                                                           on line 3a to communicate with the IRS 
which a substantial amount of the bonds      not meet certain spending requirements. 
                                                                                           and whom the IRS may contact about this 
are sold to the public. To determine the     See section 148(f)(4)(C) and the 
                                                                                           return, enter the number and street (or 
issue price of a bond issued for property,   Instructions for Form 8038-T.
see sections 1273 and 1274 and the                                                         P.O. box if mail is not delivered to street 
related regulations.                         Pooled financing issue. This is an issue      address), city, town, or post office, state, 
                                             of tax-exempt bonds, the proceeds of          and ZIP code of that person. Otherwise, 
Issue. Generally, bonds are treated as       which are to be used to finance purpose       enter the issuer's number and street (or 
part of the same issue if they are issued by investments representing conduit loans to     P.O. box if mail is not delivered to street 
the same issuer, on the same date, and in    two or more conduit borrowers, unless         address), city, town, or post office, state, 
a single transaction, or a series of related those conduit loans are to be used to         and ZIP code.
transactions (see Regulations section        finance a single capital project.
1.149(e)-1(e)(2)). However, bonds issued                                                   Note.  The address entered on lines 4 and 
during the same calendar year (a) under a    Specific Instructions                         6 is the address the IRS will use for all 
loan agreement under which amounts are                                                     written communications regarding the 
to be advanced periodically (a “draw-down    Part I—Reporting Authority                    processing of this return, including any 
loan”), or (b) with a term not exceeding                                                   notices.
270 days, may be treated as part of the      Amended return.  An issuer may file an 
same issue if the bonds are equally and      amended return to change or add to the        Line 5.  This line is for IRS use only. Do 
ratably secured under a single indenture     information reported on a previously filed    not make any entries in this box.
or loan agreement and are issued under a     return for the same date of issue. If you     Line 7.  The date of issue is generally the 
common financing arrangement (for            are filing to correct errors or change a      first date on which the issuer physically 
example, under the same official             previously filed return, check the            exchanges any bond included in the issue 
statement periodically updated to reflect    Amended Return box in the heading of the      for the underwriter's (or other purchaser's) 
changing factual circumstances). Also, for   form.                                         funds. For a lease or installment sale, 
bonds issued under a draw-down loan that     The amended return must provide all           enter the date interest starts to accrue in 
meet the requirements of the preceding       the information reported on the original      an MM/DD/YYYY format.
sentence, bonds issued during different      return, in addition to the new or corrected 
calendar years may be treated as part of     information. Attach an explanation of the     Line 8.  If there is no name of the issue, 
the same issue if all of the amounts to be   reason for the amended return and write       please provide other identification of the 
advanced under the draw-down loan are        across the top, “Amended Return               issue.
reasonably expected to be advanced           Explanation.” Failure to attach an            Line 9.  Enter the CUSIP (Committee on 
within 3 years of the date of issue of the   explanation may result in a delay in          Uniform Securities Identification 
first bond. Likewise, bonds (other than      processing the form.                          Procedures) number of the bond with the 
private activity bonds) issued under a       Line 1.  The issuer's name is the name of     latest maturity. If the issue does not have a 
single agreement that is in the form of a    the entity issuing the bonds, not the name    CUSIP number, write “None.”
lease or installment sale may be treated     of the entity receiving the benefit of the    Line 10a.   Enter the name and title of the 
as part of the same issue if all of the      financing. For a lease or installment sale,   officer or other employee of the issuer 
property covered by that agreement is        the issuer is the lessee or the purchaser.    whom the IRS may call for more 
reasonably expected to be delivered                                                        information. If the issuer wishes to 
within 3 years of the date of issue of the   Line 2.  An issuer that does not have an 
first bond.                                  employer identification number (EIN)          designate a person other than an officer or 
                                             should apply online by visiting the IRS       other employee of the issuer (including a 
Arbitrage rebate.    Generally, interest on  website at IRS.gov/EIN. The organization      legal representative or paid preparer) 
a state or local bond is not tax exempt      may also apply for an EIN by faxing or        whom the IRS may call for more 
unless the issuer of the bond rebates to     mailing Form SS-4 to the IRS.                 information about the return, enter the 
the United States arbitrage profits earned                                                 name, title, and telephone number of such 
from investing proceeds of the bond in       Line 3a. If the issuer wishes to authorize    person on lines 3a and 3b.
higher yielding nonpurpose investments.      a person other than an officer or other 
See section 148(f).                          employee of the issuer (including a legal             Complete lines 10a and 10b even 
                                             representative or paid preparer) to           !       if you complete lines 3a and 3b.
                                                                                           CAUTION
Construction issue.   This is an issue of    communicate with the IRS and whom the 
tax-exempt bonds that meets both of the      IRS may contact about this return 
following conditions.                        (including in writing or by telephone), enter 
1. At least 75% of the available             the name of such person here. The person 
construction proceeds are to be used for     listed on line 3a must be an individual. Do 

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Part II—Type of Issue For column (e), the yield, as defined in in the same manner as on line 21, column
section 148(h), is the discount rate that, (d).
Elections referred to in Part II are when used to figure the present value of
Line 34. If more than a single issue of
! made on the original bond all payments of principal and interest to be
tax-exempt bonds or taxable bonds will be
CAUTION documents, not on this form. paid on the bond, produces an amount
refunded, enter the date of issue for each
Identify the type of bonds issued by equal to the purchase price, including
refunded issue. Enter the date in an
entering the issue price in the box accrued interest. See Regulations section
MM/DD/YYYY format.
corresponding to the type of bond (see 1.148-4 for specific rules to figure the yield
Issue price under Definitions, earlier). on an issue. If the issue is a variable rate Part VI—Miscellaneous
Attach a schedule listing names and EINs issue, write “VR” as the yield of the issue.
of organizations that are to use proceeds For other than variable rate issues, carry Line 35. An allocation of volume cap is
of these bonds, if different from those of the yield out to four decimal places (for required if the nonqualified amount for the
the issuer, include a brief summary of the example, 5.3125%). If the issue is a lease issue is more than $15 million but is not
use and indicate whether or not such user or installment sale, enter the effective rate more than the amount that would cause
is a governmental or nongovernmental of interest being paid. the issue to be private activity bonds.
entity. Part IV—Uses of Proceeds of Line 36. If any portion of the gross
proceeds of the issue is or will be invested
Line 18. Enter a description of the issue Bond Issue in a guaranteed investment contract (GIC),
in the space provided. For a lease or installment sale, write “N/A” as defined in Regulations section
Line 19. If the bonds are short-term tax in the space to the right of the title for Part 1.148-1(b), enter the amount of the gross
anticipation notes or warrants (TANs) or IV. proceeds so invested, as well as the final
short-term revenue anticipation notes or Line 22. Enter the amount of proceeds maturity date of the GIC and the name of
the provider of such contract.
warrants (RANs), check box 19a. If the that will be used to pay interest on the
bonds are short-term bond anticipation issue accruing prior to the date of issue. Line 37. If the issue is a pooled financing
notes (BANs), issued with the expectation For definition of date of issue, see these issue (as defined under Pooled financing
that they will be refunded with the instructions, line 7. issue in Definitions, earlier), enter the
proceeds of long-term bonds at some amount of the proceeds used to make
future date, check box 19b. Do not check Line 24. Enter the amount of the
loans to other governmental units, the
both boxes. proceeds that will be used to pay bond
issuance costs, including fees for trustees interest on which is tax exempt.
Line 20. Check this box if property other and bond counsel. If no bond proceeds Line 38. If the issue is a loan of proceeds
than cash is exchanged for the bond, for will be used to pay bond issuance costs, from a pooled financing issue (as defined
example, acquiring a police car, a fire enter zero. Do not leave this line blank. under Pooled financing issue in
truck, or telephone equipment through a Definitions, earlier), check the box and
series of monthly payments. (This type of Line 25. Enter the amount of the
where asked for the date of issue, EIN,
bond is sometimes referred to as a proceeds that will be used to pay fees for
and name of the issuer of the master pool
“municipal lease.”) Also check this box if credit enhancement that are taken into
bond, enter the date of issue, EIN, and
real property is directly acquired in account in determining the yield on the
exchange for a bond to make periodic issue for purposes of section 148(h) (for name of the issuer of the pooled financing
payments of interest and principal. Do not example, bond insurance premiums and issue.
check this box if the proceeds of the bond certain fees for letters of credit). Line 40. Check this box if the issue is a
construction issue and an irrevocable
are received in the form of cash, even if Line 26. Enter the amount of proceeds
election to pay a penalty in lieu of
the term “lease” is used in the title of the that will be allocated to such a fund.
issue. arbitrage rebate has been made on or
Line 27. Enter the amount of the before the date the bonds were issued.
Part III—Description of Bonds proceeds that will be used to pay principal, The penalty is payable with a Form 8038-T
Line 21. For column (a), the final maturity interest, or call premium on any for each 6-month period after the date the
date is the last date the issuer must tax-exempt bonds, including proceeds bonds are issued. Do not make any
redeem the entire issue. that will be used to fund an escrow payment of penalty in lieu of arbitrage
account for this purpose. rebate with this form. See Rev. Proc.
For column (b), see Issue price under 92-22, 1992-1 C.B. 736, for rules
Definitions, earlier. Line 28. Enter the amount of the
proceeds that will be used to pay principal, regarding the “election document.”
For column (c), the stated redemption interest, or call premium on any taxable Line 41a. Check this box if the issuer
price at maturity of the entire issue is the bonds, including proceeds that will be has identified a hedge on its books and
sum of the stated redemption prices at used to fund an escrow account for this records according to Regulations sections
maturity of each bond issued as part of the purpose. 1.148-4(h)(2)(viii) and 1.148-4(h)(5) that
issue. For a lease or installment sale, write permit an issuer of tax-exempt bonds to
“N/A” in column (c). Part V—Description of identify a hedge for it to be included in
For column (d), the weighted average Refunded Bonds yield calculations for figuring arbitrage.
maturity is the sum of the products of the Complete this part only if the bonds are to Line 42. In determining if the issuer has
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.
divided by the issue price of the entire Line 43. If the issuer takes a “deliberate
issue (from line 21, column (b)). For a Lines 31 and 32. The remaining action” after the issue date that causes the
lease or installment sale, enter instead the weighted average maturity is determined conditions of the private business tests or
total number of years the lease or without regard to the refunding. The the private loan financing test to be met,
installment sale will be outstanding. weighted average maturity is determined then such issue is also an issue of private

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activity bonds. Regulations section            name and title of the person signing Form        United States. You are required to give us 
1.141-2(d)(3) defines a deliberate action      8038-G. The authorized representative of         the information. We need it to ensure that 
as any action taken by the issuer that is      the issuer signing this form must have the       you are complying with these laws.
within its control regardless of whether       authority to consent to the disclosure of 
there is intent to violate such tests.         the issuer's return information, as              You are not required to provide the 
Regulations section 1.141-12 explains the      necessary to process this return, to the         information requested on a form that is 
conditions to taking remedial action that      person(s) that have been designated in           subject to the Paperwork Reduction Act 
prevent an action that causes an issue to      Form 8038-G.                                     unless the form displays a valid OMB 
meet the private business tests or private                                                      control number. Books or records relating 
loan financing test from being treated as a    Note. If the issuer in Part I, lines 3a and      to a form or its instructions must be 
deliberate action. Check the box if the        3b, authorizes the IRS to communicate            retained as long as their contents may 
issuer has established written procedures      (including in writing and by telephone) with     become material in the administration of 
to ensure timely remedial action for all       a person other than an officer or other          any Internal Revenue law. Generally, tax 
nonqualified bonds according to                employee of the issuer, by signing this          returns and return information are 
Regulations section 1.141-12 or other          form, the issuer's authorized                    confidential, as required by section 6103.
remedial actions authorized by the             representative consents to the disclosure 
Commissioner under Regulations section         of the issuer's return information, as           The time needed to complete and file 
1.141-12(h).                                   necessary to process this return, to such        this form varies depending on individual 
                                               person.                                          circumstances. The estimated average 
Line 44. Check the box if the issuer has                                                        time is:
established written procedures to monitor      Paid Preparer
compliance with the arbitrage, yield           If an authorized officer of the issuer filled in Learning about the law or 2 hr., 41 min.
restriction, and rebate requirements of        this return, the paid preparer's space           the form           
section 148.                                   should remain blank. Anyone who                  Preparing, copying,       3 hr., 3 min. 
Line 45a. Check the box if some part of        prepares the return but does not charge          assembling, and sending 
the proceeds was used to reimburse             the organization should not sign the             the form to the IRS    
expenditures. Figure and then enter the        return. Certain others who prepare the 
amount of proceeds that are used to            return should not sign. For example, a 
reimburse the issuer for amounts paid for      regular, full-time employee of the issuer, 
a qualified purpose prior to the issuance of   such as a clerk, secretary, etc., should not     If you have comments concerning the 
the bonds. See Regulations section             sign.                                            accuracy of these time estimates or 
                                                                                                suggestions for making this form simpler, 
1.150-2.                                                                                        we would be happy to hear from you. You 
                                                 Generally, anyone who is paid to 
Line 45b. An issuer must adopt an official     prepare a return must sign it and fill in the    can send us comments through IRS.gov/
intent to reimburse itself for preissuance     other blanks in the Paid Preparer Use Only       FormComments.
expenditures within 60 days after payment      area of the return.
of the original expenditure unless                                                              Or you can write to:
excepted by Regulations section                  The paid preparer must:
1.150-2(f). Enter the date the official intent • Sign the return in the space provided          Internal Revenue Service
was adopted. See Regulations section           for the preparer's signature (a facsimile        Tax Forms and Publications
1.150-2(e) for more information about          signature is acceptable),                        1111 Constitution Ave. NW, IR-6526
official intent.                               • Enter the preparer information, and            Washington, DC 20224
                                               • Give a copy of the return to the issuer.
Signature and Consent                                                                           Do not send the form to this address. 
An authorized representative of the issuer     Paperwork Reduction Act Notice.        We        Instead, see Where To File, earlier.
must sign Form 8038-G and any                  ask for the information on this form to carry 
applicable certification. Also print the       out the Internal Revenue laws of the 

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