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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
previously filed return, check the filing for this issue. For QZABs issued Part IV— Late Payments
“Amended Return” box in the heading of under section 1397E or section 54E, enter
the form. “qualified zone academy bond—section Line 20. Under the current regulations, in
The amended return must provide all 1397E” or “qualified zone academy order to qualify for a waiver of penalty, a
the information reported on the original bond—section 54E” and the total issue failure to pay must not be due to willful
return, in addition to the new or corrected price. neglect. Attach an explanation of the
failure and the basis for concluding that
information. Attach an explanation of the Part II—Arbitrage Rebate and the failure is not due to willful neglect. See
reason for the amended return. Rev. Proc. 2005-40 for more information.
Yield Reduction Payments
Lines 1–10 Line 12. Enter the computation date to Line 21. For a failure that does not qualify
which this payment relates. The first for a waiver of penalty, the failure will be
General. Enter the same information that rebate installment payment must be made disregarded if the issuer pays a penalty to
was entered on the “initial filing” of the for a computation date that is not later the United States. For governmental and
following forms. Make any necessary than 5 years after the issue date. qualified 501(c)(3) bonds, the penalty
changes, for example, a change of Subsequent rebate installment payments equals 50% of the rebate amount not paid
address. must be made for a computation date that timely plus interest on that amount. For
• Form 8038, Information Return for is not later than 5 years after the previous other bonds, the penalty is 100% of the
Tax-Exempt Private Activity Bond computation date for which an installment rebate amount not paid timely plus interest
Issues; payment was made. on that amount.
• Form 8038-B, Information Return for
Build America Bonds and Recovery Line 13. Enter the amount of the rebate Note. The calculation for late interest is
Zone Economic Development Bonds; payment. A rebate installment payment included under line 22 only, not under
• Form 8038-G, Information Return for must be in an amount that, when added to line 21.
Tax-Exempt Governmental Bonds; the future value, as of the computation
• Form 8038-GC, Information Return for date, of previous rebate payments made Line 22. Compute interest at the
Small Tax-Exempt Governmental for the issue, equals at least 90% of the underpayment rate under section 6621,
Bond Issues, Leases, and Installment rebate amount as of that date. A final beginning on the date the correct rebate
Sales; or rebate payment must be paid in an amount is due and ending on the date 10
• Form 8038-TC, Information Return for amount that, when added to the future days before it is paid.
Tax Credit Bonds and Specified Tax value of previous rebate payments made For issues to which the 1992
Credit Bonds. for the issue, equals 100% of the rebate Regulations apply, see 1992 Regulations
amount as of that date. section 1.148-1(c)(2) for computation of
Line 1. Enter the name of the See Regulations section 1.148-3(f). the correction amount.
governmental entity that issued the bonds,
not the name of the entity receiving the For issues to which the 1992 Part V—Total Payment
benefit of the financing or the eligible Regulations apply, see 1992 Regulations
taxpayer claiming a tax credit. section 1.148-1(b)(3). Line 23. Combine all payment amounts
on lines 13, 14, 15, 17, 19, 21, and 22.
Line 4. This line is for IRS use only. Do Line 14. For investments covered by the Enclose a check or money order for the
not make an entry. special yield reduction rule, rebate and total amount made payable to the “United
yield reduction payments are included in States Treasury.” Include the issuer's
Lines 9 and 10. Enter the name, title, the computation of yield for that name, address, EIN, “Form 8038-T,” and
and telephone number of the officer or investment. the date on the check or money order.
other employee of the issuer whom the See Regulations section 1.148-5(c). Part VI—Miscellaneous
IRS may call for more information. If the
issuer wishes to designate a person other Line 15. For QZABs issued under section
Line 24. Enter the amount of proceeds
than an officer or other employee of the 1397E or section 54E, if applicable, enter
(consisting of sale, investment, and
issuer (including a legal representative or the amount equal to 100% of the
transferred proceeds) not allocated to
paid preparer) whom the IRS may call for investment earnings in a QZAB
expenditures for a governmental purpose
more information about this return, enter defeasance escrow.
of the issue.
the name, title, and telephone number of
Part III—Penalty in Lieu of
such person here. Line 25. Enter the amount of proceeds
Arbitrage Rebate used to pay principal of and call premiums
Note. By authorizing a person other than Complete this section only if, on or before on the bonds for which this form is being
an authorized officer or other employee of the issue date of the bonds, an election filed.
the issuer to communicate with the IRS was made under section 148(f)(4)(C)(vii). Line 26. Under Regulations section
and whom the IRS may call for more 1.148-5(e)(2), qualified administrative
information about this return, the issuer Line 16. Check the appropriate box for
authorizes the IRS to communicate the number of months between the issue costs are taken into account in
directly with the individual listed on line 9 date of the bonds and the end of the determining payments and receipts on
and consents to the disclosure of the spending period for which this Form nonpurpose investments. Regulations
issuer's return information to that 8038-T is being filed. For periods greater section 1.148-5(e)(2)(iii) provides special
individual, as necessary to process this than 24 months, check the box marked rules for qualified administrative costs for
return. “Other” and fill in the number of months guaranteed investment contracts (GICs)
since the date of issue. and yield restricted defeasance escrows.
Line 11. Enter the same type of issue that Enter the amount of any qualified
was entered on Form 8038, 8038-B, Note. File a separate Form 8038-T for administrative costs taken into account in
8038-G, or 8038-TC. For bonds previously each 6-month spending period. computing the rebate amount under these
reported on Form 8038-GC, enter “small special rules.
Lines 17–19. See Penalty in Lieu of
governmental bond.” Also enter the total Line 27. Under Regulations section
issue price that was listed on the initial Arbitrage Rebate, earlier.
1.148-4(f)(1), fees properly allocable to
Instructions for Form 8038-T (Rev. 10-2021) -3-
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