“Understanding IRS Form 8038-CP: Return for Credit Payments to Issuers of Qualified Bonds”

Form 8038-CP, “Return for Credit Payments to Issuers of Qualified Bonds,” is filed by issuers of certain qualified tax credit bonds to request a direct payment from the federal government for a portion of the interest paid to bondholders. This form applies to bonds such as Build America Bonds (BABs), New Clean Renewable Energy Bonds (New CREBs), Qualified Energy Conservation Bonds (QECBs), Qualified School Construction Bonds (QSCBs), and Qualified Zone Academy Bonds (QZABs).

Eligibility to file Form 8038-CP:

  1. Issuers of Qualified Bonds: Only issuers of qualified bonds are eligible to file Form 8038-CP. These are typically state and local governments or other qualifying entities that have issued bonds under specific federal programs.
  2. Qualified Tax Credit Bonds: The bonds in question must be of a type that is eligible for federal subsidy payments, such as those mentioned above.
  3. Interest Payment Dates: The form must be filed for interest payment dates on which the issuer is entitled to receive a subsidy payment. This is typically semiannually on interest payment dates.

Filing Requirements:

  • The issuer must complete and file Form 8038-CP with the Internal Revenue Service (IRS) at least 45 days before, but no more than 90 days before, the interest payment date.
  • The form requires information about the bond issue, the amount of the interest payment, and the calculation of the requested payment amount.
  • If the issuer fails to file the form within the specified time frame, they may not receive the subsidy payment on time.

Form 8038-CP is an essential tool for issuers of qualified tax credit bonds to receive federal subsidy payments, helping to reduce their borrowing costs.

Form 8038-CP is used by issuers of Build America Bonds and specified tax credit bonds to request a refundable credit payment. The information required on this form typically includes:

1. **Issuer Information:**
– Name of the issuer
– Employer Identification Number (EIN)
– Address of the issuer
– Name and title of the contact person
– Contact person’s phone number

2. **Report Number:**
– Each submission of Form 8038-CP must have a unique report number.

3. **Description of the Issue:**
– Name of the issue
– Date of issue
– Issue price

4. **Type of Bond:**
– Indicate the type of bond (e.g., Build America Bond, specified tax credit bond)

5. **Credit Payment Requested:**
– Amount of the credit payment requested for the interest payment date

6. **Interest Payment Date:**
– Date of the interest payment for which the credit payment is being requested

7. **Calculation of Credit Payment:**
– Detailed calculation of the credit payment requested, including the amount of interest paid and the applicable credit rate

8. **Issuer’s Certification:**
– Certification by an authorized official of the issuer, verifying the accuracy of the information provided

This form must be filed for each interest payment date for which the issuer is requesting a credit payment. It is essential for the issuer to maintain accurate records and calculations to support the information provided on the form.

Taxexemptbonds is an IRS authorized efiling software, that makes your 8038-CP filing experience easy, secure, and accurate with the boundless features it offers.

  • Includes Form 8038-CP Schedule A for free, when required
  • Ensures accuracy through a built in error check system
  • Provides seamless customer support via live chat, phone, and email.
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