Arbitrage Rebate, Yield Restrictions and Penalty in Lieu of Arbitrage Rebate

Sections 143 and 148 require bond issuers to pay a rebate to the United States if the proceeds of a bond issue are used for arbitrage and the issuer wishes the bonds to retain their exempt status. Section 148 also contains provisions for election and/or payment of various penalties associated with arbitrage bonds. Form 8038-T is used by issuers of tax exempt bonds to report and pay the arbitrage rebate and to elect and/or pay various penalties associated with arbitrage bonds. These issuers include state and local governments.

The latest form for Arbitrage Rebate, Yield Restrictions and Penalty in Lieu of Arbitrage Rebate expires 2022-09-30 and can be found here.

Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate

Federal Enterprise Architecture: General Government - Taxation Management

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