Schedule K - Supplemental Information on Tax Exempt Bonds

2011

Instructions for Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax-Exempt Bonds
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Purpose of Schedule
Schedule K (Form 990) is used by an
organization that files Form 990 to
provide certain information on their
outstanding liabilities associated with
tax-exempt bond issues. Usually, a bond
issue associated with an organization will
be issued as qualified 501(c)(3) bonds,
but all types of tax-exempt bond issues
benefiting the organization are to be
reported. A qualified 501(c)(3) bond issue
consists of bonds the proceeds of which
are used by a section 501(c)(3)
organization in furtherance of its
charitable purpose. Requirements
generally applicable to qualified 501(c)(3)
bonds under section 145 include the
following:
• All property financed by the bond issue
is to be owned by a section 501(c)(3)
organization or a state or local
governmental unit; and
• At least 95% of the net proceeds of the
bond issue are used by either a state or
local governmental unit or a section
501(c)(3) organization in activities which
do not constitute unrelated trades or
businesses (determined by applying
section 513).
If the organization has one or more
related organizations (for example,
parent and subsidiary relationship), it
must complete Schedule K (Form 990)
consistent with the filing(s) of its related
organization(s). The same liability should
not be reported by more than one of the
related organizations. For example, if a
parent organization issues a tax-exempt
bond issue and loans or allocates that
issue to a subsidiary organization, only
one organization (either the parent or
subsidiary) should report the liability on
Form 990 and the Schedule K. Similarly,
if a parent organization loans or allocates
the proceeds of a tax-exempt bond issue
to a group of subsidiary organizations,
only one level (either the parent or the
group of subsidiaries) should report the
liability on Form 990 and the Schedule K.
For this purpose, if the subsidiary
organizations report the liability, each
subsidiary should only report the amount
it is loaned or allocated.
If the organization’s bond liability
relates to a pooled financing issue, the
Jan 10, 2012

organization should report with respect to
the amount of the issue that the
organization is loaned or allocated.

Specific Instructions

Use Part VI to provide additional
information or comments relating to the
information provided on this schedule. For
example, use Part VI to provide additional
information or comments about the
reporting of liabilities by related
organizations. In addition, an organization
can use Part VI to describe certain
assumptions which are used to complete
Schedule K (Form 990) when the
information provided is not fully supported
by existing records.

Tax-exempt bond. This is an
obligation issued by or on behalf of a
governmental issuer for which the
interest paid is excluded from the holder’s
gross income under section 103. For this
purpose, a bond can be in any form of
indebtedness under federal tax law,
including a bond, note, loan, or
lease-purchase agreement.
Bond issue. This is an issue of two
or more bonds which are sold at
substantially the same time; sold pursuant
to the same plan of financing; and
payable from the same source of funds.
See Regulations section 1.150-1(c).
Governmental issuer. A state or
local governmental unit that issues
tax-exempt bonds.
Gross proceeds. This generally
means any sale proceeds, investment
proceeds, transferred proceeds, and
replacement proceeds of an issue. See
Regulations sections 1.148-1(b) and
1.148-1(c).
Pooled financing issue. This is a
bond issue from which loans, leases, etc.
will be made to two or more conduit
borrowers.
Proceeds. This generally means the
sale proceeds of an issue (other than
those sale proceeds used to retire bonds
of the issue that are not deposited in a
reasonably required reserve or
replacement fund). Proceeds also include
any investment proceeds from
investments that accrue during the project
period (net of rebate amounts attributable
to the project period). See Regulations
section 1.141-1(b).
Defeasance escrow. This is an
irrevocable escrow established to redeem
the bonds on their earliest call date in an
amount that, together with investment
earnings, is sufficient to pay all the
principal of, and interest and call premium
on, bonds from the date the escrow is
established to the earliest call date. See
Regulations section 1.141-12(d)(5). A
defeasance escrow can be established
for several purposes, including the
remediation of nonqualified bonds.
However, for purposes of completing this
schedule, an escrow established with
proceeds of a refunding issue to
defease a prior issue is referred to as a
refunding escrow.

Who Must File
An organization that answered “Yes” to
question 24a of Form 990, Part IV,
Checklist of Required Schedules, must
complete and attach Schedule K to Form
990. This means the organization
reported an outstanding tax-exempt bond
issue that:
• Had an outstanding principal amount in
excess of $100,000 as of the last day of
the tax year, and
• Was issued after December 31, 2002.
Up to four separate outstanding
tax-exempt liabilities can be reported on
each Schedule K (Form 990). The
schedule can be duplicated, if needed to
report more than four tax-exempt
liabilities. If the organization is not
required to file Form 990 but chooses to
do so, it must file a complete return and
provide all of the information requested,
including the required schedules.

Period Covered
The organization can complete this
schedule for any tax-exempt liability using
the same period as the Form 990 with
which it is filed. Alternatively, the
organization can use any other 12-month
period or periods selected by the
organization and which, used consistently
for a tax-exempt liability for purposes of
this schedule and computations, is in
accordance with the requirements under
sections 141 through 150. Under this
alternative, the organization can use
different 12-month periods for each
tax-exempt liability reported. The
alternative period(s) must be specifically
described in Part VI.
Cat. No. 20378D

Definitions

Refunding escrow. This is one or
more funds established as part of a single
transaction or a series of related
transactions, containing proceeds of a
refunding issue and any other amounts
to provide for payment of principal or
interest on one or more prior issues. See
Regulations section 1.148-1(b).
Refunding issue. This is an issue of
obligations the proceeds of which are
used to pay principal, interest, or
redemption price on another issue (a prior
issue), including the issuance costs,
accrued interest, capitalized interest on
the refunding issue, a reserve or
replacement fund, or similar costs, if any,
properly allocable to that refunding issue.
A current refunding issue is a refunding
issue that is issued not more than 90
days before the last expenditure of any
proceeds of the refunding issue for the
payment of principal or interest on the
prior issue. An advance refunding issue is
a refunding issue that is not a current
refunding issue. See Regulations sections
1.150-1(d)(1), (3), and (4).
Private business use. Private
business use means use of the
proceeds of an issue by the organization
or another section 501(c)(3) organization
in an unrelated trade or business as
defined by section 513. Private business
use also generally includes any use by a
nongovernmental person other than a
section 501(c)(3) organization unless
otherwise permitted through an exception
or safe harbor provided under the
regulations or a revenue procedure.
Special rules for refunding of pre-2003
issues. Bonds issued after December
31, 2002, to refund bonds issued before
January 1, 2003, have special reporting
requirements. Such refunding bonds are
subject to the generally applicable
reporting requirements of Parts I, II, and
IV. However, the organization need not
complete lines 1 through line 6 of Part III
to report private business use information
for the issue for such refunding bonds.
These special rules do not apply to bonds
issued after December 31, 2002, to
refund directly or through a series of
refundings bonds that were also originally
issued after 2002.
Example 1. Refunding of pre-2003
bonds. Bonds issued in 1999 to
construct a facility were current refunded
in 2006. In 2009, bonds were issued to
current refund the 2006 bonds. As of
December 31, 2011, the last day of the
organization’s tax year, the 2009
refunding bonds had an outstanding
principal amount exceeding $100,000.
The organization must list the refunding
bond issue in Part I for each year the
outstanding principal amount exceeds
$100,000 as of the last day of such year,
and must provide all Part I, Part II, and
Part IV information for such refunding
issue. Because the original bonds were
issued prior to 2003, the organization
need not complete Part III for the
refunding bond issue.

Example 2. Refunding of post-2002
bonds. Bonds issued in 2003 were
advance refunded in 2007. As of
December 31, 2011, the last day of the
organization’s tax year, the refunding
issue had an outstanding principal
amount exceeding $100,000. The
organization must list the refunding issue
in Part I for each year the outstanding
principal amount exceeds $100,000 as of
the last day of the year, and must provide
all Part I, Part II, Part III, and Part IV
information for such refunding issue. If
any outstanding bonds of the 2003 bond
issue were not legally defeased, the
organization also must list the 2003 bond
issue in Part I, and must provide all Part I,
Part II, Part III, and Part IV information for
such bond issue.

Part I. Bond Issues
In Part I, provide the requested
information for each outstanding
tax-exempt bond issue (including a
refunding issue) that:
• Had an outstanding principal amount in
excess of $100,000 as of the last day of
the tax year (or other selected 12-month
period), and
• Was issued after December 31, 2002.
For this purpose, bond issues that
have been legally defeased in whole, and
as a result are no longer treated as a
liability of the organization, need not be
listed in Part I and are not subject to the
generally applicable reporting
requirements of Parts I, II, III and IV.
Organizations are reminded, however,
that continued compliance with Federal
tax law requirements is required with
respect to defeased bonds.
Use one row for each issue, and use
the Part I row designation for a particular
issue (for example, “A” or “B”)
consistently throughout Parts I through IV.
The information provided in columns (a)
through (d) should be consistent with the
corresponding information included on
Form 8038, Information Return for
Tax-Exempt Private Activity Bond Issues,
filed by the governmental issuer upon the
issuance of the bond issue. Complete
multiple schedules if necessary to
account for all outstanding
post-December 31, 2002, tax-exempt
bond issues. In this case, describe in Part
VI of the first Schedule K that additional
schedules are included.
Columns (a) and (b). Enter the name
and employer identification number (EIN)
of the issuer of the bond issue. The
issuer’s name is the name of the entity
which issued the bond issue (typically a
state or local governmental unit). The
issuer’s name and EIN should be identical
to the name and EIN listed on Form 8038,
Part I, lines 1 and 2 filed for the bond
issue.
Column (c). Enter the Committee on
Uniform Securities Identification
Procedures (CUSIP) number on the bond
with the latest maturity. The CUSIP
number should be identical to the CUSIP
number listed on Form 8038, Part I, line

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8, filed for the bond issue. If the bond
issue was not publicly offered and there
is no assigned CUSIP number, write
“None.”
Column (d). Enter the issue date of the
obligation. The issue date should be
identical to the issue date listed on Form
8038, Part I, line 6, filed for the bond
issue. The issue date generally is the
date on which the issuer receives the
purchase price in exchange for delivery of
the evidence of indebtedness (for
example, a bond). In no event is the issue
date earlier than the first day on which
interest begins to accrue on the bond for
federal income tax purposes. See
Regulations section 1.150-1(b).
Column (e). Enter the issue price of the
obligation. The issue price generally
should be identical to the issue price
listed on Form 8038, Part III, line 21(b)
filed for the bond issue. The issue price
generally is determined under
Regulations section 1.148-1(b). If the
issue price is not identical to the issue
price listed on the filed Form 8038, use
Part VI to explain the difference.
Column (f). Describe the purpose of the
bond issue, such as to construct a
hospital or provide funds to refund a prior
issue. If any of the bond proceeds were
used to refund a prior issue, enter the
date of issue for each of the refunded
issues. If the issue has multiple purposes,
enter each purpose. If the issue financed
various projects or activities
corresponding to a related purpose, only
enter the purpose once. For example, if
proceeds are used to acquire various
items of office equipment, the amount of
such expenditures should be aggregated
and identified with the stated purpose of
“office equipment.” Alternatively, if
proceeds are used to construct and equip
a single facility, the expenditures should
be aggregated and identified with the
stated purpose of “construct & equip
facility” where the identification of the
facility is distinguishable from other
bond-financed facilities, if any. Use Part
VI if additional space is needed for this
purpose.
Column (g). Check “Yes” or “No” to
indicate whether a defeasance escrow
or refunding escrow has been
established to irrevocably defease any
bonds of the bond issue.
Column (h). Check “Yes” if the
organization acted as an “on behalf of”
issuer in issuing the bond issue. Check
“No” if the organization only acted as the
borrower of the bond proceeds under the
terms of a conduit loan with the
governmental issuer of the bond issue.
An “on behalf of” issuer is a
corporation organized under the general
nonprofit corporation law of a state whose
obligations are considered obligations of
a state or local governmental unit. See
Rev. Proc. 82-26, 1982-1 C.B. 476, for a
description of the circumstances under
which the IRS will ordinarily issue a letter
ruling that the obligations of a nonprofit

corporation will be issued on behalf of a
state or local governmental unit. See also:
Rev. Rul. 63-20, 1963-1 C.B. 24; Rev.
Rul. 59-41, 1959-1 C.B. 13; and Rev. Rul.
54-296, 1954-2 C.B. 59. An “on behalf of”
issuer also includes a constituted
authority organized by a state or local
governmental unit and empowered to
issue debt obligations in order to further
public purposes. See Rev. Rul. 57-187,
1957-1 C.B. 65.
Column (i). Check “Yes” or “No” to
indicate if the bond issue was a pooled
financing issue.

Part II. Proceeds
Complete for each bond issue listed in
rows A through D of Part I. Complete
multiple schedules if necessary to
account for all outstanding tax-exempt
bond issues. Note that lines 3 and 5
through 12 concern the amount of
proceeds of the bond issue, but line 4
concerns the amount of gross proceeds
of the bond issue. Because of this, the
aggregate of the amounts entered on
lines 4 through 12 may not equal the
amount entered on line 3.
Line 1. Enter the cumulative principal
amount of bonds of the issue that have
been retired as of the end of the
12-month period used in completing this
schedule.
Line 2. Enter the cumulative principal
amount of bonds of the issue that have
not been retired, but have been legally
defeased through the establishment of a
defeasance escrow or a refunding
escrow, as of the end of the 12-month
period.
Line 3. Enter the total amount of
proceeds of the bond issue as of the end
of the 12-month period. If the total
proceeds are not identical to the issue
price listed in Part I, column (e), use Part
VI to explain the difference (for example,
investment earnings).
Line 4. Enter the amount of gross
proceeds held in a reasonably required
reserve or replacement fund, sinking
fund, or pledged fund as of the end of the
12-month period. See Regulations
sections 1.148-1(c)(2), 1.148-1(c)(3), and
1.148-2(f).
Line 5. Enter the cumulative amount of
proceeds used, as of the end of the
12-month period, to pay interest on the
applicable portion of the bond issue
during construction of a financed capital
project.
Line 6. Enter the amount of proceeds
held in a refunding escrow as of the end
of the 12-month period. For this purpose
only, include investment proceeds without
regard to the project period limitation
found in the definition of proceeds.
Line 7. Enter the cumulative amount of
proceeds used to pay bond issuance
costs, including (but not limited to)
underwriters’ spread as well as fees for
trustees and bond counsel as of the end
of the 12-month period. Issuance costs
are costs incurred in connection with, and

allocable to, the issuance of a bond
issue. See Regulations section
1.150-1(b) for an example list of issuance
costs.
Line 8. Enter the cumulative amount of
proceeds 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) as of the end of
the 12-month period.
Line 9. Enter the cumulative amount of
proceeds used to finance working capital
expenditures as of the end of the
12-month period. However, do not report
expenditures reported in lines 4, 6, 7, or
8. A working capital expenditure is any
cost that is not a capital expenditure (for
example, current operating expenses).
See Regulations section 1.150-1(b).
Line 10. Enter the cumulative amount of
proceeds used to finance capital
expenditures as of the end of the
12-month period. Capital expenditures
generally include costs incurred to
acquire, construct, or improve land,
buildings, and equipment. See
Regulations section 1.150-1(b). However,
do not report capitalized interest that was
reported on line 5.
Line 11. Enter the cumulative amount of
proceeds used for any item not reported
on lines 4 through 10 as of the end of the
12-month period. Include any proceeds
used or irrevocably held to redeem or
legally defease bonds of the issue.
Line 12. Enter the amount of unspent
proceeds as of the end of the 12-month
period other than those amounts
identified in Part II, lines 4, 6 and 11.
Line 13. Enter the year in which
construction, acquisition, or rehabilitation
of the financed project was substantially
completed. A project can be treated as
substantially completed when, based
upon all the facts and circumstances, the
project has reached a degree of
completion which would permit its
operation at substantially its design level
and it is, in fact, in operation at such level.
See Regulations section 1.150-2(c). If the
bond issue financed multiple projects,
enter the latest year in which
construction, acquisition, or rehabilitation
of each of the financed projects was
substantially completed. For example, if a
bond issue financed the construction of
three projects which were substantially
completed in 2008, 2009, and 2010,
respectively, then enter “2010.” If the
bond issue financed working capital
expenditures, provide the latest year in
which the proceeds of the issue were
allocated to those expenditures.
Line 14. Check “Yes” or “No” to indicate
if the bond issue is a current refunding
issue.
Line 15. Check “Yes” or “No” to indicate
if the bond issue is an advance refunding
issue.
Line 16. Check “Yes” or “No” to indicate
if the final allocation of proceeds has

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been made. Proceeds of a bond issue
must be accounted for using any
reasonable, consistently applied
accounting method. Allocations must be
made by certain applicable due dates and
are generally not considered final until the
expiration of such due dates. See
Regulations section 1.148-6.
Line 17. Check “Yes” or “No” to indicate
if the organization maintains adequate
books and records to support the final
allocation of proceeds. Answer this
question only with respect to the tax year
applicable to this schedule.

Part III. Private Business
Use
Complete for bond issues listed in rows
A through D of Part I, other than listed
bond issues that are post-December 31,
2002 refunding issues which refund
pre-January 1, 2003 bond issues directly
or through a series of refundings. For this
purpose, a refunding bond issue also
includes allocation and treatment of
bonds of a multipurpose issue as a
separate refunding issue under
Regulations section 1.141-13(d).
Complete multiple schedules if necessary
to account for all outstanding tax-exempt
bond issues.
Line 1. Check “Yes” or “No” to indicate if
the organization was at any time during
the year a partner in a partnership or a
member of a limited liability company
which both owned property that was
financed by the bond issue and included
as partner(s) or member(s) entities other
than a section 501(c)(3) organization.
Line 2. Check “Yes” or “No” to indicate if
any lease arrangements that may result in
private business use were effective at
any time during the year with respect to
property financed by the bond issue. The
lease of financed property to a
nongovernmental person other than a
section 501(c)(3) organization is generally
private business use. Lease
arrangements that constitute unrelated
trade or business of the lessor, or that are
for an unrelated trade or business of a
section 501(c)(3) organization lessee,
may also result in private business use.
See Regulations sections 1.141-3(b)(3)
and 1.145-2(b)(1).
Line 3a. Check “Yes” or “No” to indicate
if any management or service contract
that may result in private business use
was effective at any time during the year
with respect to property financed by the
bond issue. For this purpose, answer
“Yes” even if the organization has
determined that the management or
service contract meets the safe harbor
under Rev. Proc. 97-13, 1997-1 C.B. 632,
and will not result in actual private
business use. A management or service
contract for the financed property can
result in private business use of the
property, based on all facts and
circumstances. A management or service
contract for the financed property
generally results in private business use

of that property if the contract provides for
compensation for services rendered with
compensation based, in whole or in part,
on a share of net profits from the
operation of the facility. See Regulations
section 1.141-3(b)(4).
Line 3b. If Line 3a was checked “Yes,”
check “Yes” or “No” to indicate if, during
the 12-month period used to report on the
bond issue, the organization routinely
engaged bond counsel or other outside
counsel to review any management or
service contracts relating to the financed
property.
Line 3c. Check “Yes” or “No” to indicate
if any research agreement that may result
in private business use was effective at
any time during the year for property
financed by the bond issue. For this
purpose, answer “Yes” even if the
organization has determined that the
research agreement meets the safe
harbor under Rev. Proc. 2007-47, 2007-2
C.B. 108, and will not result in actual
private business use. An agreement by
a nongovernmental person to sponsor
research performed by the organization
can result in private business use of the
property used for the research, based on
all the facts and circumstances. A
research agreement for the financed
property will generally result in private
business use of that property if the
sponsor is treated as the lessee or owner
of financed property for federal income
tax purposes. See Regulations section
1.141-3(b)(6).
Line 3d. If line 3c was checked “Yes,”
check “Yes” or “No” to indicate if, during
the 12-month period used to report on the
bond issue, the organization routinely
engaged bond counsel or other outside
counsel to review any research
agreements relating to the financed
property.
Line 4. Enter the average percentage
during the year of the property financed
by the bond issue that was used in a
private business use by a
nongovernmental person other than a
section 501(c)(3) organization. See
Regulations section 1.141-3(g)(4). Do not
include costs of issuance reported in Part
II. Enter the yearly average percentage to
the nearest tenth of a percentage point
(for example, 8.9%). For this purpose, do
not include any use relating to either a
management or service contract identified
on line 3a that the organization has
determined meets the safe harbor under
Rev. Proc. 97-13, 1997-1 C.B. 632, or
otherwise does not result in private
business use. Similarly, do not include
any use relating to a research agreement
identified on line 3b that the organization
has determined meets the safe harbor
under Rev. Proc. 2007-47, 2007-2 C.B.
108, or otherwise does not result in
private business use.
Line 5. Enter the average percentage
during the year of the property financed
by the bond issue that was used in an
unrelated trade or business activity (a
private business use) by the

organization, another section 501(c)(3)
organization, or a state or local
governmental unit. See Regulations
section 1.141-3(g)(4). Enter the yearly
average percentage rounded to the
nearest tenth of a percentage point (for
example, 8.9%).
Line 7. Check “Yes” or “No” to indicate
whether the organization has adopted
management practices and procedures to
ensure post-issuance compliance of its
tax-exempt bond liabilities. For this
purpose, post-issuance compliance
includes restrictions on private use,
arbitrage compliance and other applicable
tax law. Answer this question only with
respect to the 12-month period used to
report on the bond issue.

Part IV. Arbitrage.
Complete for each bond issue listed in
rows A through D of Part I. Complete
multiple schedules if necessary to
account for all outstanding tax-exempt
bond issues.
Line 1. Check “Yes” or “No” to indicate if
Form 8038-T, Arbitrage Rebate, Yield
Reduction and Penalty in Lieu of
Arbitrage Rebate, has been filed for the
bond issue.
Line 2. Check “Yes” or “No” to indicate if
the bond issue is a variable rate issue. A
variable rate issue is an issue containing
a bond with a yield not fixed and
determinable on the issue date.
Lines 3a through 3e. In general,
payments made or received by a
governmental issuer or borrower of
bond proceeds under a qualified hedge
are taken into account to determine the
yield on the bond issue. A qualified
hedge can be entered into before, at the
same time as, or after the date of issue.
Check “Yes” or “No” on line 3a to indicate
if the organization or the governmental
issuer has entered into a qualified hedge
and identified it on the government
issuer’s books and records. See
Regulations section 1.148-4(h). If the
answer to line 3a is “Yes”:
• Enter the name of the provider of the
hedge on line 3b;
• Enter the term of the hedge rounded to
the nearest tenth of a year (for example,
2.4 years) on line 3c;
• Enter “Yes” or “No” on line 3d to
indicate if, as a result of the hedge,
variable yield bonds will be treated as
fixed yield bonds (superintegration of the
hedge). See Regulations section
1.148-4(h)(4); and
• Enter “Yes” or “No” on line 3e to
indicate if the hedge was terminated prior
to its scheduled termination date.
Lines 4a through 4d. Check “Yes” or
“No” on line 4a to indicate if any gross
proceeds of the bond issue were
invested in a guaranteed investment
contract (GIC). A GIC includes any
nonpurpose investment that has
specifically negotiated withdrawal or
reinvestment provisions and a specifically
negotiated interest rate, including

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“negotiations” through requests for bids. It
also includes any agreement to supply
investments on two or more dates (for
example, a forward supply contract). If the
answer on line 4a is “Yes”:
• Enter the name of the provider of the
GIC on line 4b,
• Enter the term of the GIC rounded to
the nearest tenth of a year on line 4c, and
• Enter “Yes” or “No” on line 4d to
indicate if the regulatory safe harbor for
establishing fair market value provided in
Regulations section 1.148-5(d)(6)(iii) was
satisfied.
Line 5. Check “Yes” or “No” to indicate if
any gross proceeds were invested
beyond a temporary period (for example,
the 3-year temporary period applicable to
proceeds spent on expenditures for
capital projects, or the 13-month
temporary period applicable to proceeds
spent on working capital expenditures), or
if any gross proceeds were invested in a
reserve or replacement fund in an amount
exceeding applicable limits. See
Regulations sections 1.148-2(e) and (f).
Line 6. Check “Yes” or “No” to indicate if
the bond issue qualified for an exception
to rebate set forth in Regulations sections
1.148-7 or 1.148-8 (for example, the
2-year spending exception described
under section 1.148-7(e)). For this
purpose, check “Yes” when the
organization reasonably expects to meet
an available exception but has not yet
satisfied all applicable requirements.

Part V. Procedures To
Undertake Corrective
Action
Regulations section 1.141-12 and other
available remedies for non-compliance
may not cover all violations of the
requirements of section 145 and other
applicable requirements for tax-exempt
bonds benefiting the organization. Certain
remedial provisions also require that the
non-compliance be identified and
remedial action taken within a limited time
after the deliberate action or other cause
of the violation. In instances where
applicable remedial provisions are not
available under the regulations, an issuer
of bonds may request a voluntary closing
agreement to address the violation under
the Tax Exempt Bonds Voluntary Closing
Agreement Program described under
Notice 2008-31. Check the box if the
organization has established written
procedures to ensure timely identification
of violations of Federal tax requirements
and timely correction of any identified
violation(s) through use of the voluntary
closing agreement program if
self-remediation is not available under
applicable regulations. Check the box
only if the procedures applied to the
organization during the 12-month periods
used to report on the bond issues. If the
answer differs for different reported bond
issues, please explain in Part VI.

Part VI. Supplemental
Information
Use Part VI to provide the narrative
explanations required, if applicable, to
supplement Part I, columns (e) and (f); to
provide additional information or

comments relating to the reporting of
liabilities by related organizations; and to
describe certain assumptions which are
used to complete Schedule K (Form 990)
when the information provided is not fully
supported by existing records. Also use
Part VI to supplement responses to

-5-

questions on Schedule K (Form 990).
Identify the specific part and line number
that the response supports, in the order in
which the responses appear on Schedule
K (Form 990). Part VI can be duplicated if
more space is needed.