Paperwork Reduction Act Notice.
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Revenue laws of the United States. You are required to give us the
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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.
The time needed to complete and file this form varies depending on
individual circumstances. The estimated average time is:
Learning about the law or the form
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2 hr., 41 min.
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Preparing, copying, assembling, and sending the form to the IRS
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3 hr., 3 min.
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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 Tax Forms Committee,
Western Area Distribution Center, Rancho Cordova, CA 95743-0001.
Do not send the form to this office. Instead, see
Where To File on page 1.
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. Complete Parts II through VI on the basis of available
information and reasonable expectations as of the issue date. If an
item does not apply to the issue you are reporting, write N/A
in the space provided for the item.
Who Must File
IF the issue price (line 21, column (b)) is...
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THEN, for tax-exempt governmental obligations issued after December 31, 1986, issuers must file...
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$100,000 or more
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A separate Form 8038-G for each issue
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Less than $100,000
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Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales
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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 and Penalty in Lieu of Arbitrage Rebate. For
private activity bonds, use Form 8038, Information Return
for Tax-Exempt Private Activity Bond Issues.
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 issue is
issued. Complete Form 8038-G 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. 88-10, 1988-1 C.B. 635, if it is
determined that the failure to file on time is not due to willful
neglect. Enter at the top of the form This Statement Is Submitted
in Accordance with Rev. Proc. 88-10. Attach to the Form 8038-G 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 submit copies of the trust indenture or
other bond documents. See Where To File below.
Where To File
File Form 8038-G, and any attachments, with the Internal Revenue
Service Center, Ogden, UT 84201.
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.
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
below) 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 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 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 only
if they are issued by the same issuer, on the same date, and as part
of 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 (e.g., under the
same official statement periodically updated to reflect changing
factual circumstances). Also, for obligations issued under a draw-down
loan that meets 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:
- 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 501(c)(3) organization,
and
- 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 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 1½%
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.
Specific Instructions
Part I - Reporting Authority
Amended return.
If you are filing an amended Form 8038-G, check the amended return
box and complete Part I and only those parts of Form 8038-G you are
amending. Use the same report number (line 4) as was used for the
original report. Do not amend the estimated amounts previously
reported once the actual amounts are determined.
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. This form may be obtained at Social
Security Administration offices or by calling 1-800-TAX-FORM. If the
EIN has not been received by the due date for Form 8038-G, write
Applied for in the space for the EIN.
Line 4.
After the preprinted 3, enter two self-designated
numbers. Number reports consecutively during any calendar year (e.g.,
334, 335, etc.).
Line 6.
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.
Line 7.
If there is no name of the issue, please provide other
identification of the issue.
Line 8.
Enter the CUSIP (Committee of Uniform Securities Identification
Procedure) number of the bond with the latest maturity. If the issue
does not have a CUSIP number, write None on line 8.
Part II - Type of Issue
Identify the type of obligations issued by checking the appropriate
box(es) and entering the corresponding issue price (see Issue
price under Definitions on page 1). Attach a schedule
listing names and EINs of organizations that are to use proceeds of
these obligations if different from those of the issuer.
Line 18.
Check the box on this line only if lines 11 through 17 do not
apply. 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 the first box on this line. 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 the second box on this line.
Line 20.
Check this box if property other than cash is exchanged for the
obligation, e.g., 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 (b), see Issue price under Definitions
on page 1.
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 (e.g.,
5.3125%). If the issue is a lease or installment sale, enter the
effective rate of interest being paid.
Part IV - Uses of Proceeds of Bond Issue
For a lease or installment sale, write N/A in the space to
the right of the title for Part IV.
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 24.
Enter the amount of the proceeds that will be used to pay bond
issuance costs, including fees for trustees and bond counsel.
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) (e.g., bond
insurance premiums and certain fees for letters of credit).
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.
Part VI - Miscellaneous
Line 36.
If any portion of the gross proceeds of the issue are or will be
invested in a guaranteed investment contract, 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 guaranteed
investment contract.
Line 37a.
Enter the amount of this issue used to fund a loan to another
governmental unit, the interest of which is tax-exempt.
Line 39.
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 40.
Check this box if the issuer identified a hedge on its books and
records in accordance with Regulations sections 1.148-4(h)(2)(viii)
and 1.148-4(h)(5). These regulations permit an issuer of tax-exempt
bonds to identify a hedge for it to be included in yield calculations
for computing arbitrage.
First
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