Form 8038-G - Information Return for Tax-Exempt Governmental Obligation

Instructions for Form 8038-G

Department of the Treasury
Internal Revenue Service

(Rev. September 2012)

(Use with the September 2011 revision of Form 8038-G.)
Information Return for Tax-Exempt Governmental Obligations
Section references are to the Internal Revenue
Code unless otherwise noted.

General Instructions
Purpose of Form

Form 8038-G is used by issuers of
tax-exempt governmental obligations to
provide the IRS with the information
required by section 149(e) and to monitor
the requirements of sections 141 through
150.

Who Must File
IF the issue price
THEN, for tax-exempt
(line 21, column (b)) governmental
is...
obligations issued after
December 31, 1986,
issuers must file...
$100,000 or more

A separate Form 8038-G
for each issue

Less than $100,000

Form 8038-GC,
Information Return for
Small Tax-Exempt
Governmental Bond
Issues, Leases, and
Installment Sales

For all build America bonds and
recovery zone economic
CAUTION
development bonds use Form
8038-B, Information Return for Build
America Bonds and Recovery Zone
Economic Development Bonds. For tax
credit bonds and specified tax credit
bonds use Form 8038-TC, Information
Return for Tax Credit Bonds and Specified
Tax Credit Bonds.

!

When To File

File Form 8038-G on or before the 15th
day of the 2nd calendar month after the
close of the calendar quarter in which the
bond is issued. Form 8038-G may not be
filed before the issue date and must be
completed based on the facts as of the
issue date.
Late filing. An issuer may be granted an
extension of time to file Form 8038-G
under Section 3 of Rev. Proc. 2002-48,
2002-37 I.R.B. 531, if it is determined that
the failure to file timely is not due to willful
neglect. Type or print at the top of the form
“Request for Relief under section 3 of Rev.
Proc. 2002-48” and attach a letter
explaining why Form 8038-G was not
submitted to the IRS on time. Also indicate
whether the bond issue in question is
under examination by the IRS. Do not
Aug 10, 2012

submit copies of the trust indenture or
other bond documents. See Where To File
next.

Where To File

File Form 8038-G, and any attachments,
with the Department of the Treasury,
Internal Revenue Service Center, Ogden,
UT 84201.

Private delivery services. You can use
certain private delivery services
designated by the IRS to meet the “timely
mailing as timely filing/paying” rule for tax
returns and payments. These private
delivery services include only the
following:
DHL Express (DHL): DHL Same Day
Service.
Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, and FedEx
International First.
United Parcel Service (UPS): UPS Next
Day Air, UPS Next Day Air Saver, UPS
2nd Day Air, UPS 2nd Day Air A.M., UPS
Worldwide Express Plus, and UPS
Worldwide Express.
The private delivery service can tell you
how to get written proof of the mailing
date.

Other Forms That May Be
Required

For rebating arbitrage (or paying a penalty
in lieu of arbitrage rebate) to the Federal
government, use Form 8038-T, Arbitrage
Rebate, Yield Reduction and Penalty in
Lieu of Arbitrage Rebate.
For private activity bonds, use Form
8038, Information Return for Tax-Exempt
Private Activity Bond Issues.
For build America bonds (Direct Pay),
build America bonds (Tax Credit), and
recovery zone economic development
bonds, complete Form 8038-B,
Information Return for Build America
Bonds and Recovery Zone Economic
Development Bonds.
For qualified forestry conservation
bonds, new clean renewable energy
bonds, qualified energy conservation
bonds, qualified zone academy bonds,
qualified school construction bonds, clean
renewable energy bonds, and all other
qualified tax credit bonds (except build
America bonds), file Form 8038-TC,
Cat. No. 63774D

Information Return for Tax Credit Bonds
and Specified Tax Credit Bonds.

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.

Questions on Filing Form
8038-G

For specific questions on how to file Form
8038-G send an email to the IRS at
[email protected]
and put “Form 8038-G Question” in the
subject line. In the email include a
description of your question, a return email
address, the name of a contact person,
and a telephone number.

Definitions
Tax-exempt obligation. This is any
obligation, including a bond, installment
purchase agreement, or financial lease, on
which the interest is excluded from income
under section 103.
Tax-exempt governmental obligation.
A tax-exempt obligation that is not a
private activity bond (see next) is a
tax-exempt governmental obligation. This
includes a bond issued by a qualified
volunteer fire department under section
150(e).
Private activity bond. This includes an
obligation issued as part of an issue in
which:
More than 10% of the proceeds are to
be used for any private activity business
use, and
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
payments for such property) or (b) to be
derived from payments for property (or
borrowed money) used for a private
business use.
It also includes a bond, the proceeds of
which (a) are to be used directly or
indirectly to make or finance loans (other
than loans described in section 141(c)(2))
to persons other than governmental units
and (b) exceeds the lesser of 5% of the
proceeds or $5 million.
Issue price. The issue price of
obligations is generally determined under
Regulations section 1.148-1(b). Thus,

when issued for cash, the issue price is
the first price at which a substantial
amount of the obligations are sold to the
public. To determine the issue price of an
obligation issued for property, see
sections 1273 and 1274 and the related
regulations.
Issue. Generally, obligations are treated
as part of the same issue if they are issued
by the same issuer, on the same date, and
in a single transaction, or a series of
related transactions. However, obligations
issued during the same calendar year (a)
under a loan agreement under which
amounts are to be advanced periodically
(a “draw-down loan”) or (b) with a term not
exceeding 270 days, may be treated as
part of the same issue if the obligations
are equally and ratably secured under a
single indenture or loan agreement and
are issued under a common financing
arrangement (for example, under the
same official statement periodically
updated to reflect changing factual
circumstances). Also, for obligations
issued under a draw-down loan that meet
the requirements of the preceding
sentence, obligations issued during
different calendar years may be treated as
part of the same issue if all of the amounts
to be advanced under the draw-down loan
are reasonably expected to be advanced
within 3 years of the date of issue of the
first obligation. Likewise, obligations (other
than private activity bonds) issued under a
single agreement that is in the form of a
lease or installment sale may be treated
as part of the same issue if all of the
property covered by that agreement is
reasonably expected to be delivered
within 3 years of the date of issue of the
first obligation.
Arbitrage rebate. Generally, interest on
a state or local bond is not tax-exempt
unless the issuer of the bond rebates to
the United States arbitrage profits earned
from investing proceeds of the bond in
higher yielding nonpurpose investments.
See section 148(f).
Construction issue. This is an issue of
tax-exempt bonds that meets both of the
following conditions:
1. At least 75% of the available
construction proceeds are to be used for
construction expenditures with respect to
property to be owned by a governmental
unit or a section 501(c)(3) organization,
and
2. All the bonds that are part of the
issue are qualified 501(c)(3) bonds, bonds
that are not private activity bonds, or
private activity bonds issued to finance
property to be owned by a governmental
unit or a section 501(c)(3) organization.
In lieu of rebating any arbitrage that
may be owed to the United States, the
issuer of a construction issue may make

an irrevocable election to pay a penalty.
The penalty is equal to 11 2% of the
amount of construction proceeds that do
not meet certain spending requirements.
See section 148(f)(4)(C) and the
Instructions for Form 8038-T.
Pooled financing issue. This is an issue
of tax-exempt bonds, the proceeds of
which are to be used to finance purpose
investments representing conduit loans to
two or more conduit borrowers, unless
those conduit loans are to be used to
finance a single capital project.

Specific Instructions
Part I—Reporting Authority
Amended return. An issuer may file an
amended return to change or add to the
information reported on a previously filed
return for the same date of issue. 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.” Failure to attach an
explanation may result in a delay in
processing the form.
Line 1. The issuer's name is the name of
the entity issuing the obligations, not the
name of the entity receiving the benefit of
the financing. For a lease or installment
sale, the issuer is the lessee or the
purchaser.
Line 2. An issuer that does not have an
employer identification number (EIN)
should apply for one on Form SS-4,
Application for Employer Identification
Number. You can get this form on the IRS
website at 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.
Line 3a. If the issuer wishes to authorize
a person other than an officer or other
employee of the issuer (including a legal
representative or paid preparer) to
communicate with the IRS and whom the
IRS may contact about this return
(including in writing or by telephone), enter
the name of such person here. The person
listed in line 3a must be an individual. Do
not enter the name and title of an officer or
other employee of the issuer here (use
line 10a for that purpose).
Note. By authorizing a person other than
an authorized officer or other employee of
the issuer to communicate with the IRS
and whom the IRS may contact about this
return, the issuer authorizes the IRS to
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communicate directly with the individual
entered on line 3a and consents to
disclose the issuer's return information to
that individual, as necessary, to process
this return.
Lines 4 and 6. If you listed an individual
on line 3a to communicate with the IRS
and whom the IRS may contact about this
return, enter the number and street (or
P.O. box if mail is not delivered to street
address), city, town, or post office, state,
and ZIP code of that person. Otherwise,
enter the issuer's number and street (or
P.O. box if mail is not delivered to street
address), city, town, or post office, state,
and ZIP code.
Note. The address entered on lines 4 and
6 is the address the IRS will use for all
written communications regarding the
processing of this return, including any
notices.
Line 5. This line is for IRS use only. Do
not make any entries in this box.
Line 7. The date of issue is generally the
date on which the issuer physically
exchanges the bonds that are part of the
issue for the underwriter's (or other
purchaser's) funds. For a lease or
installment sale, enter the date interest
starts to accrue in an MM/DD/YYYY
format.
Line 8. If there is no name of the issue,
please provide other identification of the
issue.
Line 9. Enter the CUSIP (Committee on
Uniform Securities Identification
Procedures) number of the bond with the
latest maturity. If the issue does not have a
CUSIP number, write “None.”
Line 10a. Enter the name and title of the
officer or other employee of the issuer
whom the IRS may call for more
information. If the issuer wishes to
designate a person other than an officer or
other employee of the issuer (including a
legal representative or paid preparer)
whom the IRS may call for more
information about the return, enter the
name, title, and telephone number of such
person on lines 3a and 3b.

!

Complete lines 10a and 10b even
if you complete lines 3a and 3b.

CAUTION

Part II—Type of Issue

!

CAUTION

Elections referred to in Part II are
made on the original bond
documents, not on this form.

Identify the type of obligations issued by
entering the corresponding issue price
(see Issue price under Definitions earlier).
Attach a schedule listing names and EINs
of organizations that are to use proceeds
of these obligations, if different from those

of the issuer, include a brief summary of
the use and indicate whether or not such
user is a governmental or
nongovernmental entity.
Line 18. Enter a description of the issue
in the space provided.
Line 19. If the obligations are short-term
tax anticipation notes or warrants (TANs)
or short-term revenue anticipation notes or
warrants (RANs), check box 19a. If the
obligations are short-term bond
anticipation notes (BANs), issued with the
expectation that they will be refunded with
the proceeds of long-term bonds at some
future date, check box 19b. Do not check
both boxes.
Line 20. Check this box if property other
than cash is exchanged for the obligation,
for example, acquiring a police car, a fire
truck, or telephone equipment through a
series of monthly payments. (This type of
obligation is sometimes referred to as a
“municipal lease.”) Also check this box if
real property is directly acquired in
exchange for an obligation to make
periodic payments of interest and
principal. Do not check this box if the
proceeds of the obligation are received in
the form of cash, even if the term “lease” is
used in the title of the issue.

Part III—Description of
Obligations
Line 21. For column (a), the final maturity
date is the last date the issuer must
redeem the entire issue.
For column (b), see Issue price under
Definitions earlier.
For column (c), the stated redemption
price at maturity of the entire issue is the
sum of the stated redemption prices at
maturity of each bond issued as part of the
issue. For a lease or installment sale, write
“N/A” in column (c).
For column (d), the weighted average
maturity is the sum of the products of the
issue price of each maturity and the
number of years to maturity (determined
separately for each maturity and by taking
into account mandatory redemptions),
divided by the issue price of the entire
issue (from line 21, column (b)). For a
lease or installment sale, enter instead the
total number of years the lease or
installment sale will be outstanding.
For column (e), the yield, as defined in
section 148(h), is the discount rate that,
when used to compute the present value
of all payments of principal and interest to
be paid on the obligation, produces an
amount equal to the purchase price,
including accrued interest. See
Regulations section 1.148-4 for specific
rules to compute the yield on an issue. If
the issue is a variable rate issue, write
“VR” as the yield of the issue. For other

than variable rate issues, carry the yield
out to four decimal places (for example,
5.3125%). If the issue is a lease or
installment sale, enter the effective rate of
interest being paid.

more than the amount that would cause
the issue to be private activity bonds.

Part IV—Uses of Proceeds of
Bond Issue

Line 36. If any portion of the gross
proceeds of the issue is or will be invested
in a guaranteed investment contract (GIC),
as defined in Regulations section
1.148-1(b), enter the amount of the gross
proceeds so invested, as well as the final
maturity date of the GIC and the name of
the provider of such contract.

Line 22. Enter the amount of proceeds
that will be used to pay interest from the
date the bonds are dated to the date of
issue.

Line 37. If the issue is a pooled financing
issue (as defined under Pooled financing
issue in Definitions), enter the amount of
the proceeds used to make loans to other
governmental units, the interest on which
is tax-exempt.

For a lease or installment sale, write “N/A”
in the space to the right of the title for Part
IV.

Line 24. Enter the amount of the
proceeds that will be used to pay bond
issuance costs, including fees for trustees
and bond counsel. If no bond proceeds
will be used to pay bond issuance costs,
enter zero. Do not leave this line blank.
Line 25. Enter the amount of the
proceeds that will be used to pay fees for
credit enhancement that are taken into
account in determining the yield on the
issue for purposes of section 148(h) (for
example, bond insurance premiums and
certain fees for letters of credit).
Line 26. Enter the amount of proceeds
that will be allocated to such a fund.
Line 27. Enter the amount of the
proceeds that will be used to pay principal,
interest, or call premium on any other
issue of bonds within 90 days of the date
of issue.
Line 28. Enter the amount of the
proceeds that will be used to pay principal,
interest, or call premium on any other
issue of bonds after 90 days of the date of
issue, including proceeds that will be used
to fund an escrow account for this
purpose.

Part V—Description of
Refunded Bonds

Complete this part only if the bonds are to
be used to refund a prior issue of
tax-exempt bonds. For a lease or
installment sale, write “N/A” in the space
to the right of the title for Part V.

Lines 31 and 32. The remaining
weighted average maturity is determined
without regard to the refunding. The
weighted average maturity is determined
in the same manner as on line 21, column
(d).
Line 34. If more than a single issue of
bonds will be refunded, enter the date of
issue of each issue. Enter the date in an
MM/DD/YYYY format.

Part VI—Miscellaneous
Line 35. An allocation of volume cap is
required if the nonqualified amount for the
issue is more than $15 million but is not
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Line 38. If the issue is a loan of proceeds
from a pooled financing issue (as defined
under Pooled financing issue in
Definitions), check the box and where
asked for the date of issue, EIN, and name
of the issuer of the master pool obligation,
enter the date of issue, EIN, and name of
the issuer of the pooled financing issue.
Line 40. Check this box if the issue is a
construction issue and an irrevocable
election to pay a penalty in lieu of
arbitrage rebate has been made on or
before the date the bonds were issued.
The penalty is payable with a Form 8038-T
for each 6-month period after the date the
bonds are issued. Do not make any
payment of penalty in lieu of arbitrage
rebate with this form. See Rev. Proc.
92-22, 1992-1 C.B. 736 for rules regarding
the “election document.”
Line 41a. Check this box if the issuer
has identified a hedge on its books and
records according to Regulations sections
1.148-4(h)(2)(viii) and 1.148-4(h)(5) that
permit an issuer of tax-exempt bonds to
identify a hedge for it to be included in
yield calculations for computing arbitrage.
Line 42. In determining if the issuer has
super-integrated a hedge, apply the rules
of Regulations section 1.148-4(h)(4). If the
hedge is super-integrated, check the box.
Line 43. If the issuer takes a “deliberate
action” after the issue date that causes the
conditions of the private business tests or
the private loan financing test to be met,
then such issue is also an issue of private
activity bonds. Regulations section
1.141-2(d)(3) defines a deliberate action
as any action taken by the issuer that is
within its control regardless of whether
there is intent to violate such tests.
Regulations section 1.141-12 explains the
conditions to taking remedial action that
prevent an action that causes an issue to
meet the private business tests or private
loan financing test from being treated as a
deliberate action. Check the box if the
issuer has established written procedures
to ensure timely remedial action for all
nonqualified bonds according to

Regulations section 1.141-12 or other
remedial actions authorized by the
Commissioner under Regulations section
1.141-12(h).
Line 44. Check the box if the issuer has
established written procedures to monitor
compliance with the arbitrage, yield
restriction, and rebate requirements of
section 148.
Line 45a. Check the box if some part of
the proceeds was used to reimburse
expenditures. Figure and then enter the
amount of proceeds that are used to
reimburse the issuer for amounts paid for
a qualified purpose prior to the issuance of
the bonds. See Regulations section
1.150-2.
Line 45b. An issuer must adopt an official
intent to reimburse itself for preissuance
expenditures within 60 days after payment
of the original expenditure unless
excepted by Regulations section
1.150-2(f). Enter the date the official intent
was adopted. See Regulations section
1.150-2(e) for more information about
official intent.

Signature and Consent

An authorized representative of the issuer
must sign Form 8038-G and any
applicable certification. Also print the
name and title of the person signing Form
8038-G. The authorized representative of
the issuer signing this form must have the
authority to consent to the disclosure of
the issuer's return information, as
necessary to process this return, to the
person(s) that have been designated in
Form 8038-G.

Note. If the issuer in Part 1, lines 3a and
3b authorizes the IRS to communicate
(including in writing and by telephone) with
a person other than an officer or other
employee of the issuer, by signing this
form, the issuer's authorized
representative consents to the disclosure
of the issuer's return information, as
necessary to process this return, to such
person.

Paid Preparer

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.

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

The time needed to complete and file
this form varies depending on individual
circumstances. The estimated average
time is:

Generally, anyone who is paid to
prepare a return must sign it and fill in the
other blanks in the Paid Preparer Use Only
area of the return.

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:M:S, 1111 Constitution
Ave. NW, IR-6526, Washington, DC
20224. Do not send the form to this office.
Instead, see Where To File.

The paid preparer must:
Sign the return in the space provided for
the preparer's signature (a facsimile
signature is acceptable),
Enter the preparer information, and
Give a copy of the return to the issuer.
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.

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Learning about the law or
the form . . . . . . . . . . .
Preparing, copying,
assembling, and sending
the form to the IRS . . . .

2 hr., 41 min.
3 hr., 3 min.