Form 8038-CP - Return for Credit Payments to Issuers of Qualified Bonds

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Instructions for Form 8038-CP

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9:44 - 1-APR-2009

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Instructions for Form
8038-CP

Department of the Treasury
Internal Revenue Service

(April 2009)
Return for Credit Payments to Issuers of Qualified Bonds
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Purpose of Form
The American Recovery and
Reinvestment Act of 2009 created Build
America Bonds and Recovery Zone
Economic Development Bonds.
Form 8038-CP is used by issuers of
governmental bonds who elect to receive
a direct payment from the Federal
government equal to a percentage of the
interest payments on these bonds. For
more information, see Notice 2009-26.

Who Must File
Governmental issuers of qualified Build
America Bonds and Recovery Zone
Economic Development Bonds must
submit this form to request credit
payments payable under the American
Recovery and Reinvestment Act of 2009.

Federal government, use Form 8038-T,
Arbitrage Rebate, Yield Reduction and
Penalty in Lieu of Arbitrage Rebate. For
the issuance of all qualified Build America
Bonds and Recovery Zone Economic
Development Bonds, use Form 8038-G,
Information Return for Tax-Exempt
Governmental Obligations. The Form
8038-G associated with a Form 8038-CP
filing must be filed prior to the submission
of the first Form 8038-CP of the bond
issue. For more information, see Notice
2009-26.

Rounding to Whole Dollars
You may show amounts on this return as
whole dollars. To do so, drop amounts
less than 50 cents and increase amounts
from 50 cents through 99 cents to the
next higher dollar.

Where the Requested Payment
Will Be Sent

The payment requested on Form
8038-CP can only relate to the interest
paid on a single bond issue. If the
information provided on the form relates
to more than one bond issue, the form will
be returned to the entity in Part I, delaying
any credit payment. Also, if the form is not
completed in full, the IRS will return the
form to the entity in Part I to request the
missing information.

The credit payment on line 22 will be sent
to the address on file with the IRS of the
entity that is to receive payment
designated in Part I; this may not be the
address provided on this return. An
authorized party of the issuer or the
designated recipient can verify their
address of record by calling
1-877-829-5500. If the address of record
needs to be changed/updated, file Form
8822, Change of Address, to notify the
Internal Revenue Service before the
return is filed.

When To File

Specific Instructions

What To File

A Form 8038-CP filed with respect to
fixed rate bonds must be filed by a due
date that is 45 days before the relevant
interest payment date. Such a form may
not, however, be submitted earlier than
90 days before the relevant interest
payment date.
With respect to variable rate bonds,
issuers must aggregate all credit
payments on a quarterly basis and file a
Form 8038-CP for reimbursements in
arrears by a due date that is 45 days after
the last interest payment date within the
quarterly period for which reimbursement
is being requested.

Where To File
File Form 8038-CP with the Department
of the Treasury, Internal Revenue Service
Center, Ogden, UT 84201-0020.

Other Forms That May Be
Required
For rebating arbitrage (or paying a
penalty in lieu of arbitrage rebate) to the

Part I—Information on Entity
That Is To Receive Payment of
Credit
Amended Return. An issuer may file an
amended return to change or add to the
information reported on a previously filed
return, with respect to a single issue for
the same interest payment date. If you
are filing to correct errors or change a
previously filed return, check the
“Amended Return” box in the heading of
the form.
The amended return must provide all
the information reported on the original
return, in addition to the new or corrected
information. Attach an explanation of the
reason for the amended return and write
across the top, “Amended Return
Explanation.”
Note. Do not check the amended box if
you are correcting prior filings of Form
8038-CP by using lines 21a or 21b.
However, if you previously filed a final
Cat. No. 52942P

return and need to make subsequent
corrections to lines 21a or 21b only, then
you should check the amended return
box.
Line 1. Enter the name of the entity to
which the requested refundable credit
payment is to be paid. If the payment is to
be made to the governmental entity that
issued the bonds, enter the name of that
governmental issuer. If the governmental
issuer authorized another entity (for
example, a trustee bank) to receive the
requested refundable credit payment on
its behalf, enter the name of that entity.
Line 2. Enter the employer identification
number (EIN) of the entity identified in line
1. An entity that does not have an EIN
should apply for one on Form SS-4,
Application for Employer Identification
Number. You can get this form on the IRS
website at www.irs.gov or by calling
1-800-TAX-FORM (1-800-829-3676). You
may receive an EIN by telephone by
following the instructions for Form SS-4.
Lines 5 and 6. Enter the name, title, and
phone number of the officer or legal
representative whom the IRS may call for
more information.

Part II—Reporting Authority
Part II should be completed in full if the
governmental issuer authorized the
Service to pay the requested refundable
credit payment to another entity on its
behalf (for example, a trustee bank).
Lines 7 and 8. If the issuer’s name is
the same as line 1, enter “SAME” and
skip lines 8, 9, 11, 15, and 16. If the
issuer’s name is not the same as line 1,
enter the name and EIN of the
governmental issuer of the bond issue.
The issuer’s name and EIN should be
identical to the name and EIN listed on
the Form 8038-G, Part I, lines 1 and 2
filed with respect to the bond issue.
Line 10. This line is for IRS use only. Do
not make any entries in this box.
Line 12. Enter the issue date of the bond
issue. The issue date should be identical
to the issue date listed on the Form
8038-G, Part I, line 6.
Line 13. Enter the name of the bond
issue. The name of the bond issue should
be identical to the name listed on the
Form 8038-G, Part I, line 7, filed with
respect to the bond issue. If the bond
issue is not named write “None.”
Line 14. Enter the Committee on
Uniform Securities Identification
Procedures (CUSIP) number on the bond
with the latest maturity. The CUSIP

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Instructions for Form 8038-CP

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

number should be identical to the CUSIP
number listed on Form 8038-G, Part I,
line 8, filed for the bond issue. If the bond
issue was not publicly offered and there is
no assigned CUSIP number, write
“None.”
Lines 15 and 16. Enter the name, title,
and phone number of the officer or legal
representative whom the IRS may call for
more information. If you want to allow the
paid preparer who signed your return to
discuss this information just enter
“Preparer” in the space for title of officer
or legal representative.
Lines 17a and 17b. Enter the type of
issue that was identified on the schedule
provided with the Form 8038-G, for
example, education, health and hospital,
transportation, public safety, environment
(including sewage bonds), housing,
utilities, or other (with description). Also
enter the total issue price for the bond
listed on Form 8038-G, Part II, line 18 and
Part III, line 21b filed for the bond issue.
Do not leave lines 12, 13, 14, and
17a and 17b blank. If these lines
CAUTION are left blank it will delay
processing of this form.

!

Part III—Payment of Credit
Line 18. Enter the interest payment date
to which the requested refundable credit
payment relates. An interest payment
date is the date on which interest is
payable by the governmental issuer to the
holders of the bonds. (For variable rate
issues, enter the last interest payment
date applicable to the quarterly period for
which this return relates.)
Line 19. Enter the amount of interest
payable to the holders of the bonds on
the interest payment date. For certain
variable rate bonds the remarketing date
or the date the interest rate is reset may
not be the same date the interest is paid.
Lines 20a and 20b. Enter the amount of
the requested credit payment relating to
the interest paid on the interest payment
date. The payment requested on this
return can only relate to the interest paid
on a single bond issue.
Lines 21a and 21b. Lines 21a and 21b
are available to correct prior mistakes
with respect to credit payments related to
prior filings of Form 8038-CPs for the
respective issue.
• If a prior credit payment amount was
received that was less than the correct

amount, then enter the amount on line
21a that relates to the corresponding
increase to this payment request.
• If a prior credit payment amount was
received that exceeded the correct
amount for that payment, then enter the
amount on line 21b that relates to the
corresponding decrease to this payment
request.
• If there are both increase and decrease
adjustments related to multiple prior
payments, then net the amounts and
include the corresponding amount either
in line 21a or 21b as appropriate.
If any amount is entered on either line
21a or 21b, attach an explanation and
write across the top, “Explanation for
Adjustment - Line 21a/21b” as to how the
error occurred and what steps were taken
to prevent similar errors from recurring.
Line 22. If an amount of the credit
payment requested is required to be
offset against other outstanding taxes or
obligations, then the credit payment to be
received could be less than the amount
on line 22. For more information, see
Notice 2009-26.
Line 23. Check “Yes” or “No.” Check
“Yes” if the requested payment is the final
payment of interest with respect to the
bond issue. The final payment of interest
is the last payment of interest prior to, or
in conjunction with, the maturity or
redemption of the bonds.
Line 24. If the governmental issuer
authorized another entity (for example, a
trustee bank) to receive the requested
refundable credit payment and related
return information on its behalf, check this
box.

Signature
An issuer or issuer’s representative must
sign Form 8038-CP and any applicable
certification. Also print the name and title
of the person signing Form 8038-CP.

Paid Preparer
If an authorized representative of the
issuer filled in its return, the paid
preparer’s space should remain blank.
Anyone who prepares the return but does
not charge the issuer should not sign the
return. Certain others who prepare the
return should not sign. For example, a
regular, full-time employee of the
organization, such as a clerk, secretary,
etc., should not sign.

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Generally, anyone who is paid to
prepare a return must sign it and fill in the
other blanks in the Paid Preparer’s Use
Only area of the return.
The paid preparer must:
• Sign the return in the space provided
for the preparer’s signature,
• Enter the preparer information, and
• Give a copy of the return to the issuer.
Note. A paid preparer may sign original
or amended returns by rubber stamp,
mechanical device, or computer software.
Privacy Act and Paperwork Reduction
Act Notice. We ask for the information
on this form to carry out the Internal
Revenue laws of the United States. You
are required to give us the information.
We need it to ensure that you are
complying with these laws. Section 6109
requires paid preparers to provide their
identifying number.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.
The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated average
time is:
Recordkeeping . . . . . . . . .
Learning about the law or the
form . . . . . . . . . . . . . . . . .
Preparing, copying,
assembling, and sending the
form to the IRS . . . . . . . . . .

6 hr., 13 min.
12 min.
18 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can write to the Internal Revenue Service,
Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution
Ave. NW, IR-6526, Washington, DC
20224. Do not send the form to this
address. Instead, see Where To File on
page 1.