|
Form 8038-GC (Rev. 1-2012) Page 2
<br />When To File
<br />To file a separate return for a single issue, file
<br />Form 8038-GC on or before the 15th day of
<br />the second calendar month after the close of
<br />the calendar quarter in which the issue is
<br />issued.
<br />To file a consolidated return for multiple
<br />issues, file Form 8038-GC on or before
<br />February 15th of the calendar year following
<br />the year in which the issue is issued.
<br />Late filing. An issuer may be granted an
<br />extension of time to file Form 8038-GC under
<br />section 3 of Rev. Proc. 2002-48, 2002-37
<br />I.R.B. 531, if it is determined that the failure to
<br />file on time is not due to willful neglect. Type
<br />or print at the top of the form, "Request for
<br />Relief under section 3 of Rev. Proc. 2002-48
<br />Attach to the Form 8038-GC a letter briefly
<br />stating why the form was not submitted to the
<br />IRS on time. Also indicate whether the
<br />obligation in question is under examination by
<br />the IRS. Do not submit copies of any bond
<br />documents, leases, or installment sale
<br />documents. See Where To File next.
<br />Where To File
<br />File Form 8038-GC, and any attachments,
<br />with the Department of the Treasury, Internal
<br />Revenue Service Center, Ogden, UT 84201.
<br />Private delivery services. You can use
<br />certain private delivery services designated by
<br />the IRS to meet the "timely mailing as timely
<br />filing/paying" rule for tax returns and
<br />payments, These private delivery services
<br />include only the following:
<br />• DHL Express (DHL): DHL Same Day Service.
<br />• Federal Express (FedEx): FedEx Priority
<br />Overnight, FedEx Standard Overnight, FedEx
<br />2Day, FedEx International Priority, and FedEx
<br />International First.
<br />• United Parcel Service (UPS): UPS Next Day
<br />Air, UPS Next Day Air Saver, UPS 2nd Day
<br />Air, UPS 2nd Day Air A.M., UPS Worldwide
<br />Express Plus, and UPS Worldwide Express.
<br />The private delivery service can tell you
<br />how to get written proof of the mailing date.
<br />Other Forms That May Be
<br />Required
<br />For rebating arbitrage (or paying a penalty in
<br />lieu of arbitrage rebate) to the Federal
<br />Government, use Form 8038-T, Arbitrage
<br />Rebate, Yield Reduction and Penalty in Lieu
<br />of Arbitrage Rebate. For private activity
<br />bonds, use Form 8038, Information Return for
<br />Tax -Exempt Private Activity Bond Issues.
<br />For a tax-exempt governmental obligation
<br />with an issue price of $100,000 or more, use
<br />Form 8038-G.
<br />Rounding to Whole Dollars
<br />You may show the money items on this return
<br />as whole -dollar amounts. To do so, drop any
<br />amount less than 50 cents and increase any
<br />amount from 50 to 99 cents to the next higher
<br />dollar.
<br />Definitions
<br />Obligations. This refers to a single tax-
<br />exempt governmental obligation if Form
<br />8038-GC is used for separate reporting or to
<br />multiple tax-exempt governmental obligations
<br />if the form is used for consolidated reporting.
<br />Tax-exempt obligation. This is any obligation
<br />including a bond, installment purchase
<br />agreement, or financial lease, on which the
<br />interest is excluded from income under
<br />section 103.
<br />Tax-exempt governmental obligation. A
<br />tax-exempt obligation that is not a private
<br />activity bond (see below) is a tax-exempt
<br />governmental obligation. This includes a bond
<br />issued by a qualified volunteer fire department
<br />under section 150(e).
<br />Private activity bond. This includes an
<br />obligation issued as part of an issue in which:
<br />• More than 10% of the proceeds are to be
<br />used for any private activity business use, and
<br />• More than 10% of the payment of principal
<br />or interest of the issue is either (a) secured by
<br />an interest in property to be used for a private
<br />business use (or payments for such property)
<br />or (b) to be derived from payments for
<br />property (or borrowed money) used for a
<br />private business use.
<br />It also includes a bond, the proceeds of
<br />which (a) are to be used to make or finance
<br />loans (other than loans described in section
<br />141(c)(2)) to persons other than governmental
<br />units and (b) exceeds the lesser of 5% of the
<br />proceeds or $5 million.
<br />Issue. Generally, obligations are treated as
<br />part of the same issue only if they are issued
<br />by the same issuer, on the same date, and as
<br />part of a single transaction, or a series of
<br />related transactions. However, obligations
<br />issued during the same calendar year (a)
<br />under a loan agreement under which amounts
<br />are to be advanced periodically (a "draw -
<br />down loan") or (b) with a term not exceeding
<br />270 days, may be treated as part of the same
<br />issue if the obligations are equally and ratably
<br />secured under a single indenture or loan
<br />agreement and are issued under a common
<br />financing arrangement (for example, under the
<br />same official statement periodically updated
<br />to reflect changing factual circumstances).
<br />Also, for obligations issued under a draw -
<br />down loan that meets the requirements of the
<br />preceding sentence, obligations issued during
<br />different calendar years may be treated as
<br />part of the same issue if all of the amounts to
<br />be advanced under the draw -down loan are
<br />reasonably expected to be advanced within 3
<br />years of the date of issue of the first
<br />obligation. Likewise, obligations (other than
<br />private activity bonds) issued under a single
<br />agreement that is in the form of a lease or
<br />installment sale may be treated as part of the
<br />same issue if all of the property covered by
<br />that agreement is reasonably expected to be
<br />delivered within 3 years of the date of issue of
<br />the first obligation.
<br />Arbitrage rebate. Generally, interest on a
<br />state or local bond is not tax-exempt unless
<br />the issuer of the bond rebates to the United
<br />States arbitrage profits earned from investing
<br />proceeds of the bond in higher yielding
<br />nonpurpose investments„ See section 148(f).
<br />Construction issue. This is an issue of tax-
<br />exempt bonds that meets both of the
<br />following conditions:
<br />1. At least 75% of the available construction
<br />proceeds of the issue are to be used for
<br />construction expenditures with respect to
<br />property to be owned by a governmental unit
<br />or a 501(c)(3) organization, and
<br />2. All of the bonds that are part of the issue
<br />are qualified 501(c)(3) bonds, bonds that are
<br />not private activity bonds, or private activity
<br />bonds issued to finance property to be owned
<br />by a governmental unit or a 501(c)(3)
<br />organization.
<br />In lieu of rebating any arbitrage that may be
<br />owed to the United States, the issuer of a
<br />construction issue may make an irrevocable
<br />election to pay a penalty. The penalty is equal
<br />to 1-1/2% of the amount of construction
<br />proceeds that do not meet certain spending
<br />requirements. See section 148(f)(4)(C) and the
<br />Instructions for Form 8038-T.
<br />Specific Instructions
<br />In general, a Form 8038-GC must be
<br />completed on the basis of available
<br />information and reasonable expectations as of
<br />the date of issue. However, forms that are
<br />filed on a consolidated basis may be
<br />completed on the basis of information readily
<br />available to the issuer at the close of the
<br />calendar year to which the form relates,
<br />supplemented by estimates made in good
<br />faith.
<br />Part [—Reporting Authority
<br />Amended return. An issuer may file an
<br />amended return to change or add to the
<br />information reported on a previously filed
<br />return for the same date of issue. If you are
<br />filing to correct errors or change a previously
<br />filed return, check the "Amended Retum" box
<br />in the heading of the form.
<br />The amended return must provide all the
<br />information reported on the original return, in
<br />addition to the new corrected information.
<br />Attach an explanation of the reason for the
<br />amended return and write across the top
<br />"Amended Return Explanation."
<br />Line 1. The issuer's name is the name of the
<br />entity issuing the obligations, not the name of
<br />the entity receiving the benefit of the
<br />financing. In the case of a lease or installment
<br />sale, the issuer is the lessee or purchaser.
<br />Line 2. An issuer that does not have an
<br />employer identification number (EIN) should
<br />apply for one on Form SS-4, Application for
<br />Employer Identification Number. You can get
<br />this form on the IRS website at IRS.gov or by
<br />calling 1-800-TAX-FORM (1-800-829-3676).
<br />You may receive an EIN by telephone by
<br />following the instructions for Form SS-4.
<br />Lines 3 and 4. Enter the issuer's address or
<br />the address of the designated contact person
<br />listed on line 6. If the issuer wishes to use its
<br />own address and the issuer receives its mail
<br />in care of a third party authorized
<br />representative (such as an accountant or
<br />attorney), enter on the street address line
<br />"C/O" followed by the third party's name and
<br />street address or P.O. box. Include the suite,
<br />room, or other unit number after the street
<br />address. If the post office does not deliver
<br />mail to the street address and the issuer has a
<br />P.O. box, show the box number instead of the
<br />
|