Tax Exempt Bonds- Filing Requirements Internal Revenue Service and Tax Exempt and Government Entities (TE/GE) Operating Division
| Tax Exempt Bonds- Filing Requirements Internal Revenue Service and Tax Exempt and Government Entities (TE/GE) Operating Division |
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Tax Exempt Bonds - issuing tax exempt bonds. The
issuance of tax exempt bonds
Filing Requirements
benefits a wide array of
The Internal Revenue Service, organizations representing a
Tax Exempt & Government significant portion of the
Entities (TE/GE) Operating economic sector. These
Division offers specialized organizations have widely
assistance to customers of tax varying needs, different annual
exempt bonds. State and local filing requirements, and
officials can use this brochure minimum overlap in governing
as a quick reference to some tax law.
of the more common filing
Please see the enclosed chart on
requirement questions of tax
filing requirements (types of
exempt bond customers.
returns required to be filed and
An estimated $1.5 trillion is due dates for filing), procedures
currently invested in tax exempt for filing a late return, and
bonds, which are typically common errors to look out for
issued by a government entity. when you file. Telephone
These governmental customers numbers for assistance are also
are not subject to federal included in this brochure.
income tax at the entity level.
They are, however, required to
file certain returns as a result of
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Filing Requirements
Use the following chart as a year-round guide to determine filing
category, form(s) required, and due dates.
Customer Type of Return Due Dates(s) Late Payment(s)
Issuers of tax Form 8038, Information 15th day of the 2nd
exempt qualified Return for Tax Exempt calendar month after
private activity bond. Private Activity Bond the close of the quarter
Issues in which the bonds
were issued.
Issuers of tax exempt Form 8038-G, 15th day of the 2nd
government bonds of Information Return calendar month after
$100,000 or more. for Tax Exempt the close of the quarter
Government Obligations in which the bonds
were issued.
Issuers of tax exempt Form 8038-GC, When the return is filed as:
government bonds of Information Return for • For single issue-15th day
less than $100,000. Small Tax Exempt of the 2nd calendar month
Governmental Bond after the close of the
The return is either filed Issues, Leases, and quarter in which the
separately for each issue Installment Sales bonds were issued.
of less than $100,000 • Consolidated returns-
or as a consolidated on or before Feb 15th
return for all issues of of the calendar year
less than $100,000 each following the year in which
within the calendar year. the bonds are issued.
Issuers of tax exempt Form 8038-T, Payments for arbitrage A failure to timely pay
bonds to make: Arbitrage Rebate and rebate are generally due arbitrage rebate will be
• yield reduction payments Penalty in Lieu of 60 days after the end treated as not having
• arbitrage rebate payments Arbitrage Rebate of every 5th bond year occurred if:
• payments for penalty in during the term of the • the failure is not due to
lieu of rebate issue and 60 days from willful neglect, and
• the termination of the the date the issue is • the issuer submits a
election to pay a penalty discharged. Form 8038-T with a
in lieu of rebate, or Yield reduction payments payment of the rebate
• penalty for failing to pay are due at the same time amount owed, penalty
arbitrage rebate on time as rebate payments. and interest. The penalty
Payments for penalty in may be waived under
lieu of rebate are due no certain circumstances.
later than 90 days after
the end of each 6-month
period relating to the
penalty.
Issuing authority of Form 8328, Carry-forward This return must be filed Once the Form 8328 is
qualified private activity Election of Unused Private by the earlier of: filed, the issuer may
bonds to elect to carry- Activity Bond Volume Cap • Feb 15th of the calendar not revoke the carry-
forward any unused year following the year in forward election or
volume cap for one or which the excess amend the carry-forward
more purposes. amount arises, or amounts shown on
• the date of issue of the return.
bonds pursuant to the
carry-forward election.
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Procedures for Returns Where to File
Filed Late
File all tax exempt bond
You may be granted an exten- returns and requests for recov-
sion of time to file Forms 8038, ery of overpayment of arbitrage
8038-G, or 8038-GC as long as rebate with the Internal
the failure to file on time is not Revenue Service Center at the
due to willful neglect. Please following address.
adhere to the following guide- Internal Revenue Service Center
lines: Ogden, UT 84201
• Write on the top of the form:
This Statement is Submitted in
Accordance with IRS Revenue
Procedure 88-10.
• Attach a statement to the
form explaining why your
Signature
form was not timely submit-
ted to the IRS, and Your authorized represen-
tative must sign all tax
• Indicate whether the bond exempt bond returns (IRS
issue in question is under Forms 8038, 8038-G,
examination. 8038-GC, 8038-T, and
8328). The name and title
of the person signing the
return should be printed.
Request for Recovery of
Overpayment of
Arbitrage Rebate
In general, a request for recov-
ery of overpayment of arbitrage
rebate can be made when you
can establish that an overpay-
ment occurred.
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Common Errors
Please use the tips below as a checklist to prevent mistakes
commonly made on Forms 8038, 8038-G, and 8038-GC.
Double Checks
Authorized Representative Your authorized representative must sign
the form and any applicable certification.
Also, be sure to print the name and title
of the person signing the Form 8038.
Employer Identification Number Make certain that you enter the employer
(EIN) and Name identification number (EIN) of the
Make consistent on the return. governmental entity that issued the
bonds. (The EIN of the entity receiving
the benefit should not be used.)
Issue Date You must enter the issue date on the
Enter on return. return. The date of issue is generally the
date on which you physically exchange
the bond(s) for the underwriter’s (or
other purchaser’s) funds. The date of
issue for a lease arrangement is the date
on which the arrangement first starts
accruing interest.
Issue Price Generally, the issue price of bonds that
Enter on return. are publicly offered is the first price at
which a substantial amount of the bonds
is sold to the public. Ten percent is a sub-
stantial amount. Please include the issue
price on the return.
Maturity Date Please enter the last date that you must
Enter on return. redeem the entire issue.
“Amended Return” Block on Return IRS research shows that in some cases a
Please do not check in error. return is mistakenly checked as “amend-
ed,” when in fact, it is more often an
“original.” Please be careful not to
check “Amended Return,” unless it is.
Explanation with a Late Return If your return is filed late, you must have
Attach a request for an extension to a statement attached setting forth the
file return. reason(s) why your return was not
submitted timely to the IRS.
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Tax Exempt Bonds Leadership
National Headquarters
Washington, DC
W. Mark Scott . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(202) 283-9820
Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . main number (202) 283-2999
mark.scott@irs.gov
Frances T. Hallihan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(202) 283-9787
Executive Assistant frances.terry.hallihan@irs.gov
Clifford Gannett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(202) 283-9798
Manager, Outreach Planning & Review clifford.j.gannett@irs.gov
Baltimore, MD
Charles Anderson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(410) 962-2269
Manager, Field Operations charles.m.anderson@irs.gov
Field Management
Denver, CO
Derek Knight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (303) 784-6001 ext. 293
derek.a.knight@irs.gov
Atlanta, GA
Cheryl Dinsmore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(404) 338-8232
hazel.c.dinsmore@irs.gov
Baltimore, MD
Patricia E. Swann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(410) 962-9424
patricia.e.swann@irs.gov
Saint Paul, MN
Jack Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(651) 312-7723
jack.r.davis@irs.gov
Independence, OH
Karen Skinder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(216) 520-7052
karen.a.skinder@irs.gov
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| Telephone & Internet Assistance TE/GE and Tax Exempt Bonds offer the following primary contacts for answers to your tax questions and for tax infor- mation materials: Customer Account Services toll free at (877) 829-5500 Tax Exempt Bonds Web site at www.irs.gov/bonds |
| Working to put service first IRS Department of the Treasury Internal Revenue Service www.irs.gov Publication 3755 (5-2001) Catalog Number 31840Q |