Looking for a Form 8038-cp Templates? Download it for free!

Instructions for Form

Department of the Treasury

Internal Revenue Service

8038-CP

(Rev. June 2010)

Return for Credit Payments to Issuers of Qualified Bonds

What To File

eligible to elect to receive direct payments

Section references are to the Internal

under section 6431(f).

Revenue Code unless otherwise noted.

The payment requested on Form

8038-CP can only relate to the interest

What’s New

Reminders

paid on a single bond issue. If the issue

Section 301 of P.L. 111-147 (H.R. 2847),

has both fixed rate and variable rate

A direct deposit box was added to the

the Hiring Incentives to Restore

bonds, file a separate Form 8038-CP for

Form 8038-CP to allow issuers of bonds

Employment (HIRE) Act, provides that

each type of bond. If a single bond issue

the choice of having their credit payment

issuers of new clean renewable energy

constitutes both build America bonds

directly deposited into their account.

bonds, qualified energy conservation

(Direct Pay) and recovery zone economic

bonds, qualified zone academy bonds,

General Instructions

development bonds, file a separate Form

and qualified school construction bonds

8038-CP for each type of bond. Each

may elect to apply section 6431(f) to

Purpose of Form

issue consisting of a single maturity of

receive a refundable credit in lieu of tax

specified tax credit bonds must also be

The American Recovery and

credits under section 54A (specified tax

reported on a separate Form 8038-CP.

Reinvestment Act of 2009 (ARRA)

credit bonds). For qualified school

Issuers of specified tax credit bonds with

created build America bonds and

construction bonds and qualified zone

multiple maturities must file a separate

recovery zone economic development

academy bonds the amount of the

Form 8038-CP for each bond maturity. If

bonds. The HIRE Act provides for issuers

refundable credit allowed is equal to the

the information provided on the return

to elect to issue specified tax credit

lesser of:

relates to more than one bond issue, or in

bonds. The ARRA and the HIRE Act are

1. the amount of interest payable

the case of specified tax credit bonds with

referred to throughout these instructions

under such bond on such date, or

multiple maturities relates to more than

as the Acts.

2. the amount of interest which would

one maturity, or if the return is not

Form 8038-CP is used by issuers of

have been payable under such bond on

completed in full, the credit payment may

build America bonds and recovery zone

such date if such interest were

be delayed. In order to process the

economic development bonds who elect

determined at the applicable credit rate

refundable credit payment, the IRS will

to receive a direct payment from the

determined under section 54A(b)(3).

correspond with either the designated

Federal Government equal to a

contact person of the entity listed in Part I

For qualified energy conservation bonds

percentage of the interest payments on

at the address listed in Part I, the issuer,

and new clean renewable energy bonds,

these bonds. For more information, see

or its designee listed in Part II, as

the amount of the refundable credit

Notice 2009-26.

necessary.

allowed is equal to the lesser of:

Form 8038-CP is also used by issuers

When To File

1. the amount of interest payable

of specified tax credit bonds who elect to

under such bond on such date, or

A Form 8038-CP filed with respect to

receive a direct payment from the Federal

2. 70% of the amount of interest

fixed rate bonds must be filed no later

Government equal to a percentage of the

which would have been payable under

than 45 days before the relevant interest

interest payments on these bonds. For

such bond on such date if such interest

payment date. Form 8038-CP may not,

more information see Notice 2010-35.

were determined at the applicable credit

however, be submitted earlier than 90

Issuers of each issue of specified tax

rate determined under section 54A(b)(3).

days before the relevant interest payment

credit bonds must file a separate Form

date.

8038-CP to request payment of a

For specified tax credit bonds with

refundable credit under 6431(f).

multiple bond maturities, the refundable

With respect to variable rate bonds

credit payment is determined separately

when the issuer knows the interest

Note. Each type of specified tax credit

with respect to each maturity. The

payment amount 45 days prior to the

bond must be reported on a separate

refundable credit payment for each

interest payment date, Form 8038-CP

Form 8038-CP. For specified tax credit

maturity must be requested on a separate

may be filed within the same timelines as

bonds with multiple maturities, each

Form 8038-CP. See instructions for Part

fixed rate bonds (45 days before the

maturity must be reported on a separate

III, lines 19a and 19c, if reporting

relevant interest payment date but no

Form 8038-CP.

specified tax credit bonds with multiple

earlier than 90 days before the relevant

This return is to be filed only if, as

maturities.

interest payment date).

of the date the form is filed, the

Note. Only issuers of specified tax credit

For variable rate bonds when the

issuer of the outstanding

CAUTION

bonds that qualify for, and have elected to

issuer does not know the interest

obligation(s) with respect to which this

receive, a refundable credit under section

payment amount 45 days prior to the

return is submitted has reasonably

6431(f) may file Form 8038-CP. If the

interest payment date, the issuer must

concluded that the obligation(s) meet all

issuer of a specified tax credit bond

aggregate all credit payments on a

applicable requirements for the payment

makes the election under section 6431(f),

quarterly basis and file a Form 8038-CP

of the requested credit.

the holder of the bond will not then be

for reimbursement in arrears no later than

Who Must File

eligible to receive a tax credit under

45 days after the last interest payment

section 54A.

date within the quarterly period for which

Issuers of qualified build America bonds,

reimbursement is being requested.

Other tax credit bonds, including

recovery zone economic development

qualified forestry conservation bonds,

bonds, and specified tax credit bonds

Effective on its release, issuers of build

clean renewable energy bonds, and

must submit this return to request credit

America bonds, recovery zone economic

Midwestern tax credit bonds, are not

payments payable under the Acts.

development bonds, and specified tax

Cat. No. 52942P

Instructions For Form 8038-Cp - Return For Credit Payments To Issuers Of Qualified Bonds - Internal Revenue Service

Related Articles

Related forms

Related Categories