Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, will be used to make direct payments to
State and local governments. The American Recovery and Reinvestment Act of 2009, P.L. 111-5, provides State and
local governments with the option of issuing a tax credit bond instead of a tax-exempt governmental obligation bond.
The bill gives State and local governments the option to receive a direct payment from the Federal government equal
to a subsidy that would have been received through the Federal tax credit for bonds.

2. USE OF DATA
To issue direct payments to State and local governments for interest on tax credit bonds.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans at this time to offer electronic filing.

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not apllicable.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not apllicable.

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not apllicable.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
Periodic meetings are held between IRS personnel and representatives of various professional groups to discuss tax
law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding the
collection requirements under this form.
We received no comments during the comment period in response to the Federal Register notice dated June 20, 2012
(77 FR 37098).

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not apllicable.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not apllicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follows:
Form
Form 8038-CP

Number of
Responses
20,000

Time per
Response
12 Hrs, 20 min.

Total
Hours
246,600

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated June 20, 2012, requested public comments on estimates of
cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs
of operation, maintenance, and purchase of services to provide information. However, we did not receive any
response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
After consultation with various functions within the Service, we have determined that the cost of developing,
printing, processing, distribution and overhead for the form is $22,500.

15. REASONS FOR CHANGE IN BURDEN
Form 8038-CP is used by issuers of build America bonds, recovery zone economic development bonds, and specified
tax credit bonds who elect to receive a direct payment from the Federal Government equal to a percentage of the
interest payments on these bonds. Changes were made to the form to comply with the current regulations. For
specific tax credit bonds with mutual bond maturities, the refundable credit is determined separately for each maturity.
For qualified school construction bonds or qualified zone construction bonds or qualified zone the refundable credit
payments for all maturities must be requested on a single Form 8038-CP for each interest payment date. For qualified
energy conservation bonds and new clean renewable energy bonds, the refundable credit payment for each maturity
must be requested on a separate Form 8038-CP for each interest payment date. As a result of the changes, the total
estimated annual burden is projected to increase by 112,000 hours.
We are making this submission to renew the OMB approval.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not apllicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not applicable.
Note: The following paragraph applies to all of the collections of information in this submission:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless
the collection of information displays a valid OMB control number. Books or records relating to a collection of
information must be retained as long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

19. REASON FOR EMERGENCY SUBMISSION