Hawkins Advisory
Please be advised that the Internal Revenue Service has released a revised version of Form 8038, Information Return for Tax Exempt Private Activity Bond Issues (“IRS Form 8038”), with a revision published May 2011.
We call to your attention the major changes to IRS Form 8038, as follows:
Part I, Reporting Authority
- At Line 3 the Form provides for someone other than an officer or employee of the Issuer to be listed as the contact person. Lines 4 and 6 should contain the address of the Issuer unless a person is listed in line 3a, in which case lines 4 and 6 should contain the address of the person set forth in line 3a. The instructions note “all notices” regarding the return will be sent to whichever address is provided.
Part VII, Miscellaneous
- Lines 40b-d: Now requires the name of provider, type, and term of any hedge that was identified on the Issuer’s books and records.
- Line 41: Requires a box to be checked if the identified hedge is super integrated.
- Lines 42a-c: Requires the amount, maturity date, and name of provider of any Guaranteed Investment Contract (GIC).
- Line 43: Provides a box to be checked if the Issuer has established written procedures to ensure that nonqualified bonds are remediated in accordance with requirements of the Code and Regulations.
- Line 44: Provides a box to be checked if the Issuer has established written procedures for monitoring requirements of section 148 (arbitrage yield restriction and rebate).
- Lines 45a-b: Requires the Issuer to provide the amount of proceeds used for reimbursement and the date of the corresponding declaration of official intent.
Attached is a copy of IRS Form 8038 and the instructions thereto. Please contact a member of the Tax Department if you have any questions about the new form or establishing the procedures described therein.