Instructions for Form 8038-G

Instructions for Form 8038-G

Department of the Treasury

Internal Revenue Service

(Rev. October 2021)

Information Return for Tax-Exempt Governmental Bonds

Section references are to the Internal Revenue

Code unless otherwise noted.

Future Developments

For the latest information about

developments related to Form 8038-G and

its instructions, such as legislation

enacted after they were published, go to

IRS.gov/Form8038G.

General Instructions

Purpose of Form

Form 8038-G is used by issuers of

tax-exempt governmental bonds to

provide the IRS with the information

required by section 149(e) and to monitor

compliance with the requirements of

sections 141 through 150.

Who Must File

IF the issue price

THEN, for tax-exempt

(line 21, column (b)) governmental bonds

is...

issued after December

31, 1986, issuers must

file...

$100,000 or more

a separate Form 8038-G

for each issue.

less than $100,000

Form 8038-GC,

Information Return for

Small Tax-Exempt

Governmental Bond

Issues, Leases, and

Installment Sales.

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

bond is issued. Form 8038-G may not be

filed before the issue date and must be

completed 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. 2002-48,

2002-37 I.R.B. 531, if it is determined that

the failure to file timely is not due to willful

neglect. Type or print at the top of the form

“Request for Relief under section 3 of Rev.

Proc. 2002-48” and attach 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

next.

Sep 21, 2021

Where To File

File Form 8038-G and any attachments at

the following address.

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201

Private delivery services. You can use

certain private delivery services (PDS)

designated by the IRS to meet the “timely

mailing as timely filing” rule for tax returns.

Go to IRS.gov/PDS for the current list of

designated services.

The PDS can tell you how to get written

proof of the mailing date.

For the IRS mailing address to use if

you're using PDS, go to IRS.gov/

PDSstreetAddresses.

PDS can’t deliver items to P.O.

boxes. You must use the U.S.

CAUTION Postal Service to mail any item to

an IRS P.O. box address.

!

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, Yield Reduction and Penalty in

Lieu of Arbitrage Rebate.

For private activity bonds, use Form

8038, Information Return for Tax-Exempt

Private Activity Bond Issues.

Rounding to Whole Dollars

You may show the money items on this

return as whole-dollar amounts. To round,

drop amounts under 50 cents and

increase amounts from 50 to 99 cents to

the next dollar (for example, $1.39

becomes $1 and $2.50 becomes $3).

If two or more amounts must be added

to figure the amount to enter on a line,

include cents when adding the amounts

and round off only the total.

Definitions

Bond. This is any obligation, including

bond, note, commercial paper, installment

purchase agreement, or financing lease.

Taxable bond. This is any bond the

interest on which is not excludable from

gross income under section 103. Taxable

bonds include tax credit bonds and direct

pay bonds.

Tax-exempt bond. This is any obligation,

including a bond, installment purchase

Cat. No. 63774D

agreement, or financial lease, on which

the interest is excluded from income under

section 103.

Tax-exempt governmental bond. A

tax-exempt bond that is not a private

activity bond (see next) is a tax-exempt

governmental bond. This includes a bond

issued by a qualified volunteer fire

department under section 150(e).

Private activity bond. This includes a

bond 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 directly or

indirectly 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 bonds is

generally determined under Regulations

section 1.148-1(f). Thus, when issued for

cash, the issue price is the first price at

which a substantial amount of the bonds

are sold to the public. To determine the

issue price of a bond issued for property,

see sections 1273 and 1274 and the

related regulations.

Issue. Generally, bonds are treated as

part of the same issue if they are issued by

the same issuer, on the same date, and in

a single transaction, or a series of related

transactions (see Regulations section

1.149(e)-1(e)(2)). However, bonds 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 bonds are equally and

ratably secured under a single indenture

or loan agreement and are issued under a

common financing arrangement (for

example, under the same official

statement periodically updated to reflect

changing factual circumstances). Also, for

bonds issued under a draw-down loan that

meet the requirements of the preceding

sentence, bonds 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 bond. Likewise, bonds (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 bond.

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.

1. 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 section 501(c)

(3) organization.

2. 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 section 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 11/2% of the

amount of the available construction

proceeds of the issue that do not meet

certain spending requirements as of the

close of each 6-month period after the

date the bonds were issued. See section

148(f)(4)(C) and the Instructions for Form

8038-T.

Pooled financing issue. This is an issue

of tax-exempt bonds, the proceeds of

which are to be used to finance purpose

investments representing conduit loans to

two or more conduit borrowers, unless

those conduit loans are to be used to

finance a single capital project.

Specific Instructions

Part I—Reporting Authority

Amended return. An issuer may file an

amended return to change or add to the

information reported on a previously filed

return for the same date of issue. If you

are filing to correct errors or change a

previously filed return, check the

Amended Return box in the heading of the

form.

The amended return must provide all

the information reported on the original

return, in addition to the new or corrected

information. Attach an explanation of the

reason for the amended return and write

across the top, “Amended Return

Explanation.” Failure to attach an

explanation may result in a delay in

processing the form.

Line 1. The issuer's name is the name of

the entity issuing the bonds, 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 online by visiting the IRS

website at IRS.gov/EIN. The organization

may also apply for an EIN by faxing or

mailing Form SS-4 to the IRS.

Line 3a. If the issuer wishes to authorize

a person other than an officer or other

employee of the issuer (including a legal

representative or paid preparer) to

communicate with the IRS and whom the

IRS may contact about this return

(including in writing or by telephone), enter

the name of such person here. The person

listed on line 3a must be an individual. Do

not enter the name and title of an officer or

other employee of the issuer here (use

line 10a for that purpose).

Note. By authorizing a person other than

an authorized officer or other employee of

the issuer to communicate with the IRS

and whom the IRS may contact about this

return, the issuer authorizes the IRS to

communicate directly with the individual

entered on line 3a and consents to

disclose the issuer's return information to

that individual, as necessary, to process

this return.

Lines 4 and 6. If you listed an individual

on line 3a to communicate with the IRS

and whom the IRS may contact about this

return, enter the number and street (or

P.O. box if mail is not delivered to street

address), city, town, or post office, state,

and ZIP code of that person. Otherwise,

enter the issuer's number and street (or

P.O. box if mail is not delivered to street

address), city, town, or post office, state,

and ZIP code.

Note. The address entered on lines 4 and

6 is the address the IRS will use for all

written communications regarding the

processing of this return, including any

notices.

Line 5. This line is for IRS use only. Do

not make any entries in this box.

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Line 7. The date of issue is generally the

first date on which the issuer physically

exchanges any bond included in the issue

for the underwriter's (or other purchaser's)

funds. For a lease or installment sale,

enter the date interest starts to accrue in

an MM/DD/YYYY format.

Line 8. If there is no name of the issue,

please provide other identification of the

issue.

Line 9. Enter the CUSIP (Committee on

Uniform Securities Identification

Procedures) number of the bond with the

latest maturity. If the issue does not have a

CUSIP number, write “None.”

Line 10a. Enter the name and title of the

officer or other employee of the issuer

whom the IRS may call for more

information. If the issuer wishes to

designate a person other than an officer or

other employee of the issuer (including a

legal representative or paid preparer)

whom the IRS may call for more

information about the return, enter the

name, title, and telephone number of such

person on lines 3a and 3b.

!

Complete lines 10a and 10b even

if you complete lines 3a and 3b.

CAUTION

Part II—Type of Issue

Elections referred to in Part II are

made on the original bond

CAUTION documents, not on this form.

!

Identify the type of bonds issued by

entering the issue price in the box

corresponding to the type of bond (see

Issue price under Definitions, earlier).

Attach a schedule listing names and EINs

of organizations that are to use proceeds

of these bonds, if different from those of

the issuer, include a brief summary of the

use and indicate whether or not such user

is a governmental or nongovernmental

entity.

Line 18. Enter a description of the issue

in the space provided.

Line 19. If the bonds are short-term tax

anticipation notes or warrants (TANs) or

short-term revenue anticipation notes or

warrants (RANs), check box 19a. If the

bonds 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 box 19b. Do not check

both boxes.

Line 20. Check this box if property other

than cash is exchanged for the bond, for

example, acquiring a police car, a fire

truck, or telephone equipment through a

series of monthly payments. (This type of

bond is sometimes referred to as a

“municipal lease.”) Also check this box if

real property is directly acquired in

Instructions for Form 8038-G (Rev. 10-2021)

exchange for a bond to make periodic

payments of interest and principal. Do not

check this box if the proceeds of the bond

are received in the form of cash, even if

the term “lease” is used in the title of the

issue.

Part III—Description of Bonds

Line 21. For column (a), the final maturity

date is the last date the issuer must

redeem the entire issue.

For column (b), see Issue price under

Definitions, earlier.

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 figure the present value of

all payments of principal and interest to be

paid on the bond, produces an amount

equal to the purchase price, including

accrued interest. See Regulations section

1.148-4 for specific rules to figure 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 (for

example, 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 on the

issue accruing prior to the date of issue.

For definition of date of issue, see these

instructions, line 7.

Line 24. Enter the amount of the

proceeds that will be used to pay bond

issuance costs, including fees for trustees

and bond counsel. If no bond proceeds

will be used to pay bond issuance costs,

enter zero. Do not leave this line blank.

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) (for

example, bond insurance premiums and

certain fees for letters of credit).

Line 26. Enter the amount of proceeds

that will be allocated to such a fund.

Line 27. Enter the amount of the

proceeds that will be used to pay principal,

interest, or call premium on any

tax-exempt bonds, including proceeds

that will be used to fund an escrow

account for this purpose.

Line 28. Enter the amount of the

proceeds that will be used to pay principal,

interest, or call premium on any taxable

bonds, 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 or taxable 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

tax-exempt bonds or taxable bonds will be

refunded, enter the date of issue for each

refunded issue. Enter the date in an

MM/DD/YYYY format.

Part VI—Miscellaneous

Line 35. An allocation of volume cap is

required if the nonqualified amount for the

issue is more than $15 million but is not

more than the amount that would cause

the issue to be private activity bonds.

Line 36. If any portion of the gross

proceeds of the issue is or will be invested

in a guaranteed investment contract (GIC),

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 GIC and the name of

the provider of such contract.

Line 37. If the issue is a pooled financing

issue (as defined under Pooled financing

issue in Definitions, earlier), enter the

amount of the proceeds used to make

loans to other governmental units, the

interest on which is tax exempt.

Line 38. If the issue is a loan of proceeds

from a pooled financing issue (as defined

under Pooled financing issue in

Definitions, earlier), check the box and

where asked for the date of issue, EIN,

and name of the issuer of the master pool

bond, enter the date of issue, EIN, and

name of the issuer of the pooled financing

issue.

Instructions for Form 8038-G (Rev. 10-2021)

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Line 40. 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 41a. Check this box if the issuer

has identified a hedge on its books and

records according to Regulations sections

1.148-4(h)(2)(viii) and 1.148-4(h)(5)(iv)

that permit an issuer of tax-exempt bonds

to identify a hedge for it to be included in

yield calculations for figuring arbitrage.

Line 42. In determining if the issuer has

super-integrated a hedge, apply the rules

of Regulations section 1.148-4(h)(4). If the

hedge is super-integrated, check the box.

Line 43. If the issuer takes a “deliberate

action” after the issue date that causes the

conditions of the private business tests or

the private loan financing test to be met,

then such issue is also an issue of private

activity bonds. Regulations section

1.141-2(d)(3) defines a deliberate action

as any action taken by the issuer that is

within its control regardless of whether

there is intent to violate such tests.

Regulations section 1.141-12 explains the

conditions to taking remedial action that

prevent an action that causes an issue to

meet the private business tests or private

loan financing test from being treated as a

deliberate action. Check the box if the

issuer has established written procedures

to ensure timely remedial action for all

nonqualified bonds according to

Regulations section 1.141-12 or other

remedial actions authorized by the

Commissioner under Regulations section

1.141-12(h).

Line 44. Check the box if the issuer has

established written procedures to monitor

compliance with the arbitrage, yield

restriction, and rebate requirements of

section 148.

Line 45a. Check the box if some part of

the proceeds was used to reimburse

expenditures. Figure and then enter the

amount of proceeds that are used to

reimburse the issuer for amounts paid for

a qualified purpose prior to the issuance of

the bonds. See Regulations section

1.150-2.

Line 45b. Subject to certain exceptions

under Regulations section 1.150-2(f), an

issuer must adopt an official intent, as

described in Regulations section

1.150-2(e), to reimburse itself for

preissuance expenditures within 60 days

after payment of the original expenditure.

Enter the date the official intent was

adopted.

Signature and Consent

An authorized representative of the issuer

must sign Form 8038-G and any

applicable certification. Also print the

name and title of the person signing Form

8038-G. The authorized representative of

the issuer signing this form must have the

authority to consent to the disclosure of

the issuer's return information, as

necessary to process this return, to the

person(s) that have been designated in

Form 8038-G.

Note. If the issuer in Part I, lines 3a and

3b, authorizes the IRS to communicate

(including in writing and by telephone) with

a person other than an officer or other

employee of the issuer, by signing this

form, the issuer's authorized

representative consents to the disclosure

of the issuer's return information, as

necessary to process this return, to such

person.

Paid Preparer

If an authorized officer of the issuer filled in

this return, the paid preparer's space

should remain blank. Anyone who

prepares the return but does not charge

the organization should not sign the

return. Certain others who prepare the

return should not sign. For example, a

regular, full-time employee of the issuer,

such as a clerk, secretary, etc., should not

sign.

Generally, anyone who is paid to

prepare a return must sign it and fill in the

other blanks in the Paid Preparer Use Only

area of the return.

The paid preparer must:

• Sign the return in the space provided

•

•

for the preparer's signature (a

facsimile signature is acceptable),

Enter the preparer information, and

Give a copy of the return to the issuer.

Paperwork Reduction Act Notice. We

ask for the information on this form to carry

out the Internal Revenue laws of the

United States. You are required to give us

the information. We need it to ensure that

you are complying with these laws.

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

control number. Books or records relating

-4-

to a 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 will vary depending on the

individual circumstances. The estimated

burden for tax-exempt organizations filing

this form is approved under OMB control

number 1545-0047 and is included in the

estimates shown in the instructions for

their information return.

If you have suggestions for making this

form simpler, we would be happy to hear

from you. You can send us comments

through IRS.gov/FormComments.

Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

Do not send the form to this address.

Instead, see Where To File, earlier.

Instructions for Form 8038-G (Rev. 10-2021)