Form 8038-CP

Form 8038-CP

A form that the issuer of certain bonds files with the IRS to receive reimbursements for coupon payments. Under the American Recovery and Reinvestment Act and similar legislation, qualified bonds may be used to pay for certain environmentally sustainable projects, certain school construction projects, and other projects intended to provide construction and similar jobs to Americans. These bond issuers receive credit up to a certain level of coupon payments.
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The bond programs authorized by ARRA expired for new issues on January 1, 2011; however, issuers of bonds created under ARRA continue to request credit payments for previously issued bonds by filing Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.
The filing deadline for Form 8038-CP varied based on the structure of the interest payments.
20) Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, is used by issuers of Build America Bonds, recovery zone economic development bonds, and specified tax credit bonds who elect to receive a direct payment from the Federal Government equal to a percentage of the interest payments on these bonds.
For variable rate bonds, if the issuer does not know the payment amount 45 days prior to the interest payment date, the issuer must aggregate all credit payments on a quarterly basis and file Form 8038-CP no later than 45 days after the last interest payment date.
Form 8038-CP data are population data for credit payments requested during Calendar Year 2011.
The IRS instructs issuers to still complete Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, as they normally would.
The issuers of bonds affected by the sequestration should still timely file Form 8038-CP to receive the majority of the tax credit subsidies afforded to them.
Issuers can expect to receive requested payments within 45 days after the IRS receives the new Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.
Direct payment bond issuers are required to file Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, to request credit payments.
Filing requirements for Form 8038-CP vary depending on whether the bond has a fixed or variable rate of interest.