3.11.26. Miscellaneous Tax Exempt Governmental Entities (TE/GE) Tax Returns

(1) The operating divisions established Service Level Agreements (SLAs). This document contains specific information on SLAs on activities that this IRM’s users do.

(1) Our goal is to achieve consistency in the Business Master File (BMF) Code & Edit processing IRMs.

(2) Ogden and Paper Processing Branch BMF Code & Edit and ERS section coordinate the effort to identify topics for BMF Consistency.

(3) This IRM identifies BMF Consistency subsections which are identified by a "♦" (diamond) before and after the subsection title.

(4) Text in normal print is the common process for BMF returns. The text in bold print is form-specific and applies to this IRM only.

(1) The Tax Reform Act of 1986 requires issuers of Tax Exempt Bonds to file information returns with the Internal Revenue Service. It also requires that municipal bonds meet certain rules for the interest received by the bondholders to be exempt from federal income tax.

(2) The table below lists the specific form type, MFT, Doc Code, and valid Report Number range as it applies to each TEB return. The Tax Class for all TEB returns is 3. The Document Code (Doc. Code) in the Document Locator Number (DLN) defines which form it specifically relates to.

(1) Form 8038, Information Return for Tax Exempt Private Activity Bond Issues, is for issuers of tax exempt qualified private activity bonds to provide the IRS with the information required by IRC 149(e) and to monitor the requirements of IRC 141 through IRC 150.

(2) Form 8038-G, Information Return for Tax Exempt Governmental Obligations, is for issuers of tax exempt governmental bonds of $100,000 or more to provide the IRS with information required by IRC 149(e).

(3) Form 8038-GC, Information Return for Small Tax Exempt Governmental Bond Issues, Leases, and Installment Sales, is for issuers of tax exempt governmental bonds of less than $100,000, to provide the IRS with information required by IRC 149(e).

(4) Form 8038-R, Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, is for issuers of state and local bonds to request a refund of amounts previously paid with Form 8038-T. Form 8038-R replaces the letter procedure of Rev. Proc. 92.83, 1992-2 C.B. 487.

(5) Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate , is for issuers of tax exempt bonds when paying arbitrage rebate (or penalty in lieu of rebate) to the United States as required under IRC 148(f), or the corresponding provisions of the 1954 Code; or to make a yield reduction payment in accordance with IRC 1.148-5(c) . Payments may be made by a person acting on behalf of the issuer for bonds subject to IRC 103(c)(6)(D) of the 1954 Code. Under IRC 148(f) , interest on a state or local bond isn’t tax exempt unless the issuer of the bond rebates to the United States on Form 8038-T, arbitrage profits earned from investing proceeds of the bond in higher yield nonpurpose investments.

(6) Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap, is for the issuing authority of private activity bonds to elect to carry forward its unused volume cap for one or more carryforward purposes (see IRC 146(f)). A state may also use Form 8328 to carryforward the unused volume cap under IRC 142(k) . Once Form 8328 is filed, the issuer may not revoke the carry forward election or amend the carry forward amounts on the form.

(7) Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is for issuers of qualified bonds who elect to receive a direct payment from the federal government equal to the subsidy that would have otherwise been delivered through the federal tax credit for bonds.

(8) Schedule A, (Form-8038-CP) Specified Tax Credit Bonds Interest Limit Computation, is used to compute the amount of the refundable credit payment allowed under section 6431(f) and must be completed for all specified tax credit bonds (NCREBs, QECBs, QZABs, and QSCBs).

(9) Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, is for reporting Build America Bonds and Recovery Zone Economic Development Bonds to provide the IRS with information required by IRC 149(e).

(10) Form 8038-TC, Information Return for Tax Credit and Specified Tax Credit Bonds as the result of the new Hire bill, is for issuers of qualified tax credit bonds to provide the IRS with the information required by IRC 149(e).

(11) Form 8703, Annual Certification of a Residential Rental Project, is for an operator of a residential rental project to provide annual information the IRS will use to determine whether a project continues to be a qualified residential rental project under IRC 142(d). If so, and certain other requirements are met, bonds issued in connection with the project are considered "exempt facility bonds" and the interest paid on them isn’t taxable to the recipient.

(1) Municipal bonds may be classified as tax exempt (government or qualified private activity bonds) or taxable ( government or qualified private activity bonds).

(2) Municipal bonds may be issued as governmental bonds or non-governmental bonds. Some non-governmental bonds are also called "qualified private activity bonds". The following identifies a few bond categories:

1. Governmental Bonds: issued to finance governmental activities of a state or local government. That is, the government entity uses the bond proceeds for its own purposes. Certain lease arrangements may be treated as tax exempt bonds when the lease transaction is treated as a conditional sales contract.

   Example: Funds used to build and maintain highways, schools, government buildings (e.g., courthouses), or sewer and water facilities.

2. Qualified Private Activity Bonds: issued by state and local governments. The facilities financed with the bond proceeds can be owned and operated by non-governmental entities for limited purposes specified in IRC 142(a), 143, 144, and 145.

Code Section	Examples
IRC 142 exempt facility bonds	Airports Docks and wharves Mass commuting facilities Facilities for the furnishings of water Sewage facilities Solid waste disposal facilities Qualified residential rental projects Facilities for the local furnishing of electric energy or gas Local heating or cooling facilities Qualified hazardous waste facilities High-speed intercity rail facilities Environmental enhancements of hydroelectric generating facilities (142(a)) Qualified public educational facilities Qualified green building and sustainable design projects Qualified highway or surface freight transfer facilities. Qualified broadband projects. Qualified carbon dioxide capture facilities.
IRC 143 bonds	Qualified Mortgage Bonds Qualified Veteran's Mortgage Bonds
IRC 144 bonds	Qualified Small Issue Bonds Qualified Student Loan Bonds Qualified Redevelopment Bonds
IRC 145 bonds	Qualified IRC 501(c)(3) bonds

Example: A county needs a nursing home in its community. It loans bond proceeds to an IRC 501(c)(3) corporation who will construct and operate the facility.

3. Pooled Financing may involve proceeds of governmental bonds or certain types of private activity bonds. In a pooled financing, the proceeds of the issuer loans the bonds to more than one borrower. The borrower of the proceeds may be tax exempt organizations or other state or local governments.

   Example: A state issues bonds and lends the bond proceeds to multiple school districts within the state. One school district uses the proceeds to buy computer equipment for its schools. Another school district uses the proceeds to construct administrative offices. A third school district uses the proceeds to renovate its athletic facilities.

4. Registered Warrants are a short term obligation (30 - 60 day bond) of a municipality.

5. Commercial Paper Bonds are a short term bond having a maturity date of 270 days or less. These bonds are issued per a commercial paper program that is treated as part of a single issue.

6. Commercial Paper Program is a program to issue commercial paper to finance or refinance the same governmental purpose per a master legal document.

7. The Liberty Bond is due to the September 11, 2001 terrorist attack. The IRS provided guidance (Notice 2002-42 2002–27 IRB 36) on the effects of various tax benefits that were enacted for areas of New York City. IRC 1400L(a) provides for a new targeted group for the Work Opportunity Tax Credit (WOTC): New York Liberty Zone business employees. The new targeted group includes individuals who perform substantially all of their services in the New York Liberty Zone (NYLZ), and may include individuals who perform substantially all of their services elsewhere in New York City for a business that relocated from the NYLZ due to the physical destruction or damage of its workplace within the NYLZ by the September 11, 2001 terrorist attack.

8. Lease Installment Sales: unconditional sales agreements under which a municipal government leases equipment that it acquires at the end of the lease period.

9. Promissory Notes: interest bearing certificates of governments that come due in a shorter time than bonds. Municipal notes have maturities up to approximately one year.

10. Lines of Credit: pre-approved loans where the municipality draws down money as it is needed. The loans have specified dollar limits, terms and interest rates.

    Note: This is similar to a home equity loan of a homeowner.

11. Green bonds: issued to finance projects designated by the Secretary after consultation with the Environmental Protection Agency Administrator. Green building and sustainable design projects must meet certain eligibility requirements.

12. The Gulf Opportunity Zone Bond is due to the Hurricane Katrina disaster area determined by the President to warrant individual or individual and public assistance from the federal government. The IRS provided guidance ( Notice 2006-41, 2006–18 IRB 857), which authorizes Alabama, Louisiana, and Mississippi to issue certain exempt facility bonds and qualified mortgage bonds per IRC 1400N(a). Gulf Opportunity Zone Bonds must’ve been issued before January 1, 2011.Notice 2006-41 also provides guidance on Gulf Opportunity Zone Advance Refunding Bonds that are permitted to be issued under IRC 1400N(b).

(3) Bonds are an "obligation" of any state or political subdivision thereof. Obligation means any valid evidence of indebtedness under general federal tax principles. Obligations are not limited to bonds or other securities but may also include written contracts such as installment sales contracts and loans to a municipality.

(4) To be an obligation money must be borrowed by a governmental entity, used for governmental or qualified purposes, and there must be an obligation to repay.

(5) Income from certain obligations of states and their political subdivisions may likewise be excluded from gross income. Such obligations include:

1. Installment sales contracts

2. Equipment leases

3. Bank loans

(1) Use these definitions in this IRM:

(1) Review all attachments to the return before you can consider the return processable.

(2) Detach attachments only when specifically instructed.

(3) Detach documents with an original signature. Don’t detach documents used to supplement or support the return (e.g., Debt Service Schedule is attached to a Form 8038-B).

(4) Refer to the Campus Mail Routing Guide (MRG) for proper disposition of attachments not found in this section.

(5) Edit action trail(s) (e.g., "Form 2848 DETACHED") in the lower left corner going vertically up the side of the return.

(1) The Restructuring and Reform Act of 1998 Section 3705(a) requires all IRS employees who communicate with taxpayers by phone, in writing , or face to face, to give their name, unique identification number and telephone number when communicating with taxpayers.

(2) When writing a letter include the following:

1. Your title (Mr., Mrs., Ms., or Miss),

2. Your last name,

3. Your badge identification number or IDRS number, and

4. A telephone number where the taxpayer's questions can be answered.

(3) If you’re not the best person to respond to taxpayer questions, include a telephone number the taxpayer may contact. In this case, use a standard signature.

(1) There are no package mail-outs for TEB forms, therefore, no pre-printed labels exist for these forms.

(1) This subsection provides procedures for processing special returns which includes amended, SFR, reprocessable and statute.

(1) We edit marks on the return for transcription to the Automated Data Processing (ADP) System through ISRP. Code and Edit must edit in red pencil/pen. Other areas can edit in brown, orange, purple or green.

(2) The only items edited on the return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

(3) Never obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Make sure the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

(4) For a description of specific edit marks, see the table below:

(1) Use Action Codes (AC) to indicate whether correspondence, research, or some other action is needed. The AC sets the suspense period to be assigned to the return and places the return in the workable or unworkable suspense inventory.

(2) When necessary, a three-digit Action Code will be assigned by the tax examiner. Action codes are valid on Form 8038, Form 8038-G, Form 8038-GC, Form 8328, Form 8038-T, Form 8038-B, Form 8038-TC, Form 8038-CP and Form 8703. Process any other returns through a manual correction system.

(3) Edit the AC in the bottom left margin of the tax return.

(4) Assign action codes in the following priority:

1. AC 310 (Statute Control)

2. AC 320 (Entity Control)

3. AC 4XX

4. AC 6XX

5. AC 3XX

6. AC 2XX (correspondence)

(5) Attach Form 4277 when more than one AC is needed. Edit the second AC on Form 4227.

(6) If more than one AC of the same priority is required (e.g., 310 and 341), edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition. See Exhibit 3.11.26-7.

(7) Edit the following ACs when unable to perfect a return from the information present:

(8) Continue perfecting the return after editing the action code(s).

(1) Submission Processing no longer sends TEB acknowledgments. The TEB acknowledgment process was automated to allow issuance of either a CP 152, TEB Acknowledgment Notice or CP 152A, Form 8038-CP Acknowledgment and Sequestration Notice when a TC 150 posts to Master File. Both notices are issued for each tax exempt bond filed. The CP 152 /152A also generates to the POA if one is active for the specific tax period and form type.

(2) The CP 152A generates on all Forms 8038-CP and serves as both an acknowledgment notice and a notice of sequestration.

(3) When we receive an acknowledgment request from an issuer or preparer asking IRS to return the attached letter and/or copy of their TEB return, don’t reply. Annotate on the return "copy" and line through the photocopy in red ink and leave attached to the original return and continue processing.

(4) If an original return isn’t present, and the form is marked with wording similar to "Acknowledgment copy" or "Please stamp and return", route to EO Accounts (MS: 6710).

(1) If we receive a form with a revision date before the date shown below, renumber the return using the Return Conversion Chart. See Exhibit 3.11.26-4 and Exhibit 3.11.26-3, "Prior Year Conversion Chart".

(1) Edit the Computer Condition Code (CCC) as follows:

• Form 8038: Part II, line 11a on the dotted portion ( rev. before 1999, Part II, line 9a).

• Form 8038-G: Part II, line 11 on the dotted portion (rev. before 1999, line 9).

• Form 8038-GC: Part II, line 8a on the dotted portion (rev. before 1999, line 5).

• Form 8038-T: Part II, line 12 on the dotted portion (rev. before 1999, line 10).

• Form 8328: Part II, line 1 on the dotted portion.

• Form 8038-B: Part II, line 1a on the dotted portion.

• Form 8038-TC: Part III, line 1 on the dotted portion.

• Form 8703: Part II, line 5 on the dotted portion.

• Form 8038-CP: Part III, line 18 to 19c area on the dotted portion.

(2) Edit one or more "CCC" when instructed to do so.

(3) Valid "CCC" for Forms 8038, 8038-G, 8038-GC, 8038-T, 8038-CP, 8038-B, 8038-TC, 8328 and 8703 are D, F, G, R, 3 and 7. Condition Code "H" is only valid on Form 8038-G and CCC "X" and "C" is only valid for Form 8038-CP.

(4) Refer to the following table for Computer Condition Codes:

(1) When the due date of the return falls on a Saturday, Sunday or legal holiday, consider the return timely filed if postmarked by the first business day after that date per IRC 7503.

(2) The table below lists the due dates for Form 8038, Form 8038-B, Form 8038-G, Form 8038-TC and Form 8038-GC (single & consolidated):

(3) As a result of the COVID-19 pandemic, Notice 2020-23 extended the due date for Forms 8038, 8038-G & 8038-GC for the first quarter of TY 2020. As a result, returns that were due 05/15/2020 was extended to 07/15/2020.

1. If the return is for the first quarter TY 2020, and the RRD is prior to 07/15/2020, edit CCC “R”.

2. If RRD is after 07/15/2020, follow normal procedures.

(4) Form 8328 due date is shown below.

(5) Form 8038-T due date is determined based on information provided in either Part II or Part III. If both Part II and Part III are completed and/or the due date can’t be determined as outlined below, edit ERS AC 211.

(6) Form 8703 due date is shown below.

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(1) An early filed return is defined as a return whose received date is prior to its tax period ending date.

(2) If you determine a Form 8038, From 8038-G, Form 8038-GC, Form 8038-B, Form 8038-TC, Form 8328 or Form 8703 to be early filed, proceed as follows.

(3) Early filed procedures do not apply to the Form 8038-CP. If you receive a Form 8038-CP and the return received date is 120 days prior to the IPD, route the return to the FAST unit, MS: 1114.

(1) Taxpayers use Form 2848, Power of Attorney and Declaration of Representative, to authorize an individual to act on their behalf as a power of attorney (POA). The individual authorized must be a person eligible to practice before the IRS.

(2) Taxpayers use Form 8821, Tax Information Authorization (TIA), to authorize a third party to inspect and/or receive a taxpayer's return or return information, and isn’t a POA. The third party can be an individual, corporation, firm, organization, or partnership.

(3) Process Forms 2848 or 8821 by completing the following:

1. Edit the received date of the return on the center portion of the POA/TIA form.

2. Circle the tax period and the tax return form number to which the POA/TIA form is attached.

3. Edit the same report number that is edited on the bond form in the "Plan Number" box.

4. Route the original POA/TIA to the CAF Unit within 24 hours of receipt.

5. Continue perfecting the return.

Note: Don’t edit a CAF Code on the form.

(4) If a POA/TIA request isn’t submitted on Form 2848 or 8821:

1. Leave the POA/TIA document attached to the return.

2. Continue perfecting the return.

3. Don’t edit or route the document.

(1) Accept reasonable cause and edit CCC "R" or "D" if the taxpayer has filed the following IRM 3.11.26.4.5, Computer Condition Codes.

(2) If the taxpayer indicates the failure to file or pay was due to willful neglect, reasonable cause may not be granted. Willful neglect is defined as "Conscious, intentional failure to comply with the provisions of the IRC, or reckless indifference to such provisions".

(1) All tax exempt bond returns must have a received date.

(2) Perfect and/or edit the received date on the center portion of the return in MMDDYY format. If the filer entered a legible date, don’t edit.

(3) If multiple received dates are stamped on the return, circle out all except the earliest received date.

(4) If there is no received date or the date stamp is illegible on the return, edit the received date in the following order:

1. U.S. Postal Service Postmark Date/Foreign Postmark./Designated Private Delivery Service .

Note: If the U.S. Postal Service, foreign postmark, and private meter marks are all present, the U.S. Postal Service date takes precedence.

2. SCAMPS (service center automatic mail processing system) digital date.

3. Revenue Officers or agents signature date

4. Signature date only within current year

5. Julian date minus 10 days (numbered)

6. Current processing date minus 10 days (unnumbered)

(5) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(1) A signature and jurat are required on all returns except the following:

• Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative.

• Returns prepared by Examination.

  Example: "SFR" (Substitution for Return) or SUBSTITUTE RETURN.

• Dummy returns prepared by IRS.

• Returns secured by Examination

• Returns secured by TEGE

• True Duplicate

(2) If only the signature is missing, edit ERS AC 225.

(3) As part of our response to the COVID-19 situation a temporary deviation was implemented that allows taxpayers and representatives to use electronic or digital signatures when signing certain forms that currently require a handwritten signature. Effective immediately electronic or digital signatures are acceptable on Form 8038, Form 8038-G or Form 8038-GC returns that are signed or postmarked on August 28, 2020 or later. The temporary guidance was extended to October 31, 2023. Electronic and digital signatures appear in many forms when printed and may be created by many different technologies. No specific technology is required for this purpose during this temporary deviation.

(1) Forms 8038, 8038-G, 8038-B, and 8038-TC: Located in Part I, line 8. If blank, edit from attachments (such as the Debit Service Schedule). If you can’t perfect it, leave blank.

(2) Form 8038-T: Located in Part I, line 7. If blank, edit from attachments. If you can’t perfect it, leave blank.

(3) Form 8703 - Located in Part III, line 16. If blank, edit from attachments. If you can’t perfect it, leave blank.

(4) Forms 8038-GC and 8328: Not valid for these forms. If present, delete entry.

(1) To be processable, a return must contain all of these:

1. Employer Identification Number,

2. Legible name,

3. Legible address, and

4. Valid tax period.

(2) An "unprocessable" return may consist of one or more of the following:

1. The name is so illegible or incomplete that you can’t determine the name control.

2. The EIN is missing, illegible, or other than 9 digits.

3. Required tax data entered on the return is incomplete, illegible, or contradictory.

4. A foreign address is entered in the entity section or the address is missing or illegible.

   Exception: Form 8703 with a Puerto Rico address is valid. Continue processing the return.

(1) Form 8038-T is the only tax exempt bond form that should come with remittance. The green rocker money amount identifies the remittance.

(2) If a green rocker amount is present on a Tax Exempt Bond form other than Form 8038-T, proceed as follows:

1. Prepare a dummy Form 8038-T and attach the original form behind the dummy Form 8038-T.

2. Route the dummy Form 8038-T to Receipt and Control by attaching Form 4722. Annotate "move green rocker money amount to Form 8038-T"

(3) If we receive multiple Forms 8038-T (separate issues) attached to one another, and only the top document has a DLN and green rocker remittance, send the documents back to Receipt & Control, Deposit unit. They’ll cancel the DLN, correct the money and issue new DLNs for each of the returns.

(1) Transcribe all money amount fields in dollars only.

(2) For form revisions prior to 04/2011, see Exhibit 3.11.26-3 , Prior Year Conversion Chart

(3) Form 8038 is due on or before the 15th day of the 2nd calendar month (1 month and 15 days) after the close of the calendar quarter of the bond issuance.

(4) Don’t edit a tax period on Form 8038. The transcribed "Date of Issue" generates the tax period.

(5) Always perfect the entity information.

(6) Part I, line 5, Report Number.

1. A zero, N/A, dash or none aren’t acceptable entries.

2. The valid range for this form is 100 - 199.

(7) Part I, Line 7, Date of Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. If the filer entered a legible date, don’t edit the date.

3. If more than one date is present, underline the earliest date.

4. If the Date of Issue is before 01011985, blank or you can’t perfect it from attachments, edit ERS AC 211.

(8) Part I, Line 8, Name of Issue

1. If blank edit from attachments.

2. If unable to perfect, leave blank.

(9) Part I, Line 9, CUSIP Number

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 9 contains the word "NONE", it’s a valid entry and does not require editing.

(10) Part II, Lines 11a – 20c, Type of Issue

(11) Part III, Line 21, Column (a), Final Maturity Date.

1. Blank, zero, N/A, dash, or none aren’t acceptable entries.

(12) Part III, Line 21, Column (b), Entire Issue Price

1. A zero, N/A, dash, or none aren’t acceptable entries.

(13) Part III, Line 21, Column (e), Yield Percentage

1. The entry can be numeric or alpha character "VR" (variable rate). Edit numeric entries in decimals out to the 4th position as XX.XXXX.

   Example: - Line entry is five and one half, edit 05.5000.
   - Line entry is 10 3/4, edit 10.7500.
   - Line entry is 5.26, edit 05.2600.
   - Line entry is "VR", edit "VR0000".

2. If blank, edit from attachments.

3. If you can’t perfect it, leave blank.

(14) Part IV, Line 23, Issue Price of Entire Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. Edit the amount from Part III, line 21, Column (b).

(15) Part IV, Line 29, Add lines 24 through 28, Total Proceeds

1. Compute line 29 by adding lines 24-28.

(16) Part IV, Line 30, Non-refunding Proceeds of the Issue

1. If line 30 is zero or blank, subtract line 29 from line 23.

2. Enter the result in Part IV, line 30.

(17) Part V, Line 32a-d, NAICS Code and NAICS Amount of Non-refunding Proceeds

(18) Part VI, Line 33, Remaining Weighted Average Maturity Currently Refunded Years

1. If blank, edit from attachments.

2. If more than one year is present, edit the first year.

3. If you can’t perfect it, leave blank.

(19) Part VI, Line 35, Last Date on which the Refunded Bonds will be Called

(20) Part VI, Line 36, Date(s) the Refunded Bonds were Issued

(21) Part VII, Line 37, Name of Governmental Unit(s) Approving Issue

(22) Part VII, Line 38, Issue Designation under section 265(b)(3) check box

1. This field is valid if marked or blank.

(23) Part VII, Line 39, Election to pay a penalty check box

1. This field is valid if marked or blank.

(24) Part VII, Line 40a, Identification of a hedge check box

1. This field is valid if marked or blank.

(25) Part VII, Line 41 Hedge is super integrated check box.

1. This field is valid if marked or blank.

(26) Part VII, Line 42b, Final Maturity Date of the GIC

(27) Part VII, Line 43, Issuer Established procedures for non-qualified bonds check box.

1. This field is valid if marked or blank.

(28) Part VII, Line 44, Issuer established procedures to monitor requirements of section 148 check box.

1. This field is valid if marked or blank.

(29) Part VII, Line 45b, Date Official Intent was adopted.

(30) Part VII, Line 46, Issue Redevelopment Exempt Box/ Primary Private User Name/ Primary Private User EIN check box.

(31) Part VIII, Line 47, Amount of State Volume Cap Allocated to the Issuer

(32) Part VIII, Line 49b, Volume Cap Carryforward Election Amount

(33) Part VIII, Line 51a, Volume Cap Issue Section 1394(f) Amount

(34) Part VIII, Line 52, Volume Cap Issue Section 142(k)(5) Amount

(35) Form 8038, Signature

(36) Paid Preparer Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN)

1. The Preparer's SSN (201006 revision) or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 201006 revision) at the bottom-right corner of Form 8038, page 3 (page 2 for 201006 revision).

2. The preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

3. A PTIN begins with a “P”, followed by an eight digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

(37) Paid Preparer EIN

1. The Preparer's EIN is located below the PTIN box (Preparer's SSN or PTIN box (201006 revision) at the bottom-right corner of Form 8038, Page 3 (page 2 for 201006 revision).

2. The preparer's EIN is a nine-digit number. Circle the EIN if all zeroes or all nines.

(38) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Preparer’s phone number is more than 10 digits, no action is required.

4. If the Paid Preparer's phone number is incomplete, illegible, or less than 10 digits, circle the phone number.

(1) Transcribe all money amount fields in dollars only.

(2) For form revisions before 09-2011, see Exhibit 3.11.26-3 , Prior Year Conversion Chart.

(3) Form 8038-G is due on or before the 15th day of the 2nd calendar month (1 month and 15 days) after the close of the calendar quarter in which the bond is issued.

(4) Don’t edit a tax period on Form 8038-G. The transcribed "Date of Issue" generates the tax period.

(5) Always perfect the entity information.

(6) Part I, Line 5, Report Number

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. The valid range for this form is 300 - 399.

(7) Part I, Line 7, Date of Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

(8) Part I, Line 9, CUSIP Number

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 9 contains the word "NONE", it’s a valid entry and does not require editing.

(9) Part II, Lines 11 - 18, Type of Issue

(10) Part III, Line 21, Column (a), Final Maturity Date

1. Blank, zero, N/A, dash, or none aren’t acceptable entries.

(11) Part III, Line 21, Column (b), Entire Issue Price

1. A zero, N/A, dash, or none aren’t acceptable entries.

(12) Part III, Line 21, Column (e), Yield Percentage

1. The entry can be numeric or alpha characters VR (variable rate). Edit numeric entries in decimals out to the 4th position as XX.XXXX.

   Example: - Line entry is five and one half, edit 05.5000.
   - Line entry is 10 3/4, edit 10.7500.
   - Line entry is 5.26, edit 05.2600.
   - Line entry is "VR", edit "VR0000".

2. If blank, edit from attachments.

3. If you can’t perfect it, leave blank.

(13) Part IV, Line 23, Issue Price of Entire Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

(14) Part IV, Line 29, Add lines 24 through 28, Total Proceeds

(15) Part IV, Line 30, Non-refunding Proceeds of the Issue

1. If line 30 is blank, N/A or zero, subtract line 29 from line 23.

2. Enter the result in Part IV, line 30.

(16) Part V, Line 31, Remaining Weighted Average Maturity Currently Refunded Years

1. If blank, edit from attachments.

2. If it can’t be perfected, leave blank.

(17) Part V, Line 33, Last Date on which the Refunded Bonds will be Called

(18) Part V, Line 34, Date(s) the Refunded Bonds were Issued

(19) Part VI, Line 36b, Final Maturity Date of the GIC

(20) Form 8038-G - Signature

(21) Paid Preparer Social Security Number (SSN) or Preparer Tax Identification Number (PTIN)

1. The Preparer's SSN (201005 revision) or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 201005 revision) at the bottom-right corner of Form 8038-G, page 2.

2. The Preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

3. A PTIN begins with a "P", followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

(22) Paid Preparer Employer Identification Number (EIN)

1. The Preparer's EIN is located below the preparer's SSN/PTIN box (Preparer's SSN or PTIN box for 20201005 revision) at the bottom-right corner of Form 8038-G, Page 2.

2. The Preparer's EIN is a nine-digit number. Circle the EIN if all zeroes or all nines

(23) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Preparer's phone number is more than 10 digits, no action is required.

4. If the Paid Preparer's phone number is incomplete, illegible, or less than 10 digits, circle the phone number.

(1) For form revisions before 01/2012, see Exhibit 3.11.26-3, Prior Year Conversion Chart.

(2) All money fields are transcribed in dollars only.

(3) Always perfect the entity information.

(4) Tax Exempt Governmental Obligations that aren’t reported on a separate 8038-GC must be reported on a consolidated return, reporting all issues issued within the calendar year. These returns, Form 8038-GC (single) and Form 8038-GC (consolidated) have different due dates. To determine the correct due date, refer to the table below and Exhibit 3.11.26-2.

(5) Edit the tax period (including current year returns) in YYMM format below the OMB number on Form 8038-GC. Use the "Issue Date" located in Part II, line 8b to determine the tax period.

(6) Part I, Line 5, Report Number

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. The valid range for this form is 500-599.

(7) Part II, Description of Obligations, Single or Consolidated Check Box

1. This field is invalid if blank. At least one box must be marked.

(8) Part II, Line 8a, Entire Issue Price

1. A zero, N/A, dash, or none aren’t acceptable entries.

(9) Part II, Line 8b, Issue Date

1. A zero, N/A, dash, or none aren’t acceptable entries.

(10) Part II, Line 9a through 9k, amount of reported obligations.

(11) Part II, Line 10, Issuer has Designated any Issue under Section 265(b)(3)(B)(i)(III) Check Box

1. This field is valid if marked or blank.

(12) Part II, Line 11, Issuer has elected to Pay a Penalty in Lieu of Arbitrage Rebate Check Box

1. This field is valid if marked or blank.

(13) Form 8038-GC, Signature

(14) Paid Preparer Social Security Number (SSN) or Preparer Tax Identification Number (PTIN)

1. The Paid Preparer's SSN (200905 revision) or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 200905 revision) at the bottom-right corner of Form 8038-GC, page 1.

2. The Preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

3. A PTIN begins with a "P", followed by an eight-digit number (e.g., PXXXXXXXX).

(15) Paid Preparer Employer Identification Number (EIN)

1. The Preparer's EIN is located below the PTIN box (Preparer's SSN or PTIN box for 200905 revision) at the bottom-right corner of Form 8038-GC page 1.

2. The preparer's EIN is a nine-digit number. Circle the EIN if all zeroes or all nines.

(16) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Preparer's phone number is more than 10 digits, no action is required.

4. If the Paid Preparer's phone number is incomplete, illegible, or less than 10 digits, circle the phone number.

(1) Transcribe all money amount fields in dollars only, with the exception of line 23, (transcribed in dollars and cents).

(2) For form revisions before to 04/2011, see Exhibit 3.11.26-3 , Prior Year Conversion Chart.

(3) Don’t edit the tax period. The transcribed "Date of Issue" generates the tax period on Form 8038-T.

(4) Form 8038-T remittance is identified as a green rocker money amount. If a green rocker amount is present on a tax exempt bond form other than Form 8038-T, proceed as follows:

1. Prepare a dummy 8038-T and attach the original form behind the dummy Form 8038-T.

2. Route the dummy Form 8038-T to Receipt and Control by attaching Form 4227. Annotate "move green rocker money amount to Form 8038-T".

(5) If we receive multiple Forms 8038-T (separate issues) attached to one another, and only the top document has a DLN and green rocker remittance, send the documents back to Receipt & Control, Deposit unit. They’ll cancel the DLN, correct the money and issue new DLNs for each of the returns.

(6) If Form 8038-T is annotated "Special Yield Reduction Payment Made Pursuant to Revenue Procedure 95-47" (or similar verbiage) in the top margin of the return, refer to the procedures outlined below.

(7) Always perfect the entity information.

(8) Part I, Line 4, Report Number

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. The valid range for this form is 700 - 799.

(9) Part I, Line 6, Date of Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

(10) Part I, Line 8, CUSIP Number

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 8 contains the word "NONE", it’s a valid entry and does not require editing.

(11) Part I, Line 11, Entire Issue Price

1. A zero, N/A, dash or none aren’t acceptable entries.

(12) Part II, Line 12, Computation Date to which this Payment Relates

(13) Part II, Line 13, Arbitrage Rebate Payment Check Box

1. This field is valid if marked or blank.

(14) Part II, Line 14, Yield Reduction Payment Check Box

1. This field is valid if marked or blank.

(15) Part III, Line 16, Number of Months Since Date of Issue Check Boxes

1. This field is valid if marked or blank.

(16) Part III, Line 18, Date of Termination Election

1. This field is valid if blank.

2. If the filer entered a legible date, don’t edit.

(17) Part IV, Line 20, Does Failure to Pay Timely Qualify for Waiver of Penalty Check Box

1. This field is valid if marked or blank.

(18) Part V, Line 23, Total Payment Amount

1. Edit in dollar and cents.

If	Then
blank,	add lines 13, 14, 15, 17, 19, 21, 22 and edit amount to line 23.
Part II, lines 13 - 15, Part III, lines 17 and 19, and Part IV, lines 21 and 22 are blank, and you can’t perfect it from attachments,	edit the green rocker remittance amount on Part V, line 23.
Part II, lines 13 - 15, Part III, lines 17 and 19, and Part IV, lines 21 and 22 are blank, and there isn’t a green rocker remittance amount,	leave Part V, line 23 blank.
line 23 is other than blank, and there are amounts present on lines 13 through 22,	add lines 13 through 22 and edit amount to line 23.
Part V, line 23 indicates a negative (-) amount, and a green rocker remittance amount is present,	circle out the negative symbol (-) and continue processing.
Part V, line 23 indicates a negative (-) amount, and a green rocker remittance amount isn’t present,	circle out the negative amount and continue processing.

(19) Part VI, Line 28, Is the Issue a Variable Rate Issue Check Box

1. This field is valid if marked or blank.

(20) Part VI, Line 29, Did the Issuer Enter into a Hedge Check Box

1. This field is valid if marked or blank.

(21) Part VI, Line 30, Were Gross Proceeds Invested in a GIC Check Box

1. This field is valid if marked or blank.

(22) Part VI, Line 31, Were any Gross Proceeds Invested Beyond an Available Temporary Period Check Box

1. This field is valid if marked or blank.

(23) Part VI, Line 32, Calculation for Filing of this Form Prepared by Check Box

1. This field is valid if marked or blank.

(24) Form 8038-T, Signature

(25) Paid Preparer's Preparer Tax Identification Number (PTIN)

1. The Paid Preparer's PTIN is located to the right of the Preparer's Signature in the PTIN box at the bottom-right corner of Form 8038-T, page 1.

2. A PTIN begins with a P, followed by an eight-digit number (e.g., PXXXXXXXX).

(26) Paid Preparer Employer Identification Number (EIN)

1. The Paid Preparer's EIN is located below the PTIN box at the bottom-right corner of Form 8038-T, page 1.

2. The Paid Preparer's EIN is a nine-digit number. Circle the EIN if all zeroes or all nines

(27) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Paid Preparer's phone number is more than 10 digits, no action is required.

4. If the Paid Preparer's phone number is incomplete, illegible, or less than 10 digits, circle the phone number.

(1) Transcribe all money amount fields in dollars only.

(2) Edit the tax period in YY12 format below the OMB number on Form 8328. If the return is for the current tax year or blank, edit the calendar year preceding the year the return is filed to determine the tax period (e.g., IRS received date is February 15, 2020, then edit the tax period to be December 31, 2019). If a calendar year is other than current or blank, edit the tax period as shown on the return (e.g., calendar year is 2019, edit tax period as 1912).

(3) Reasonable cause or Rev. Proc. 88-10, Rev. Proc. 2002-48 or Rev. Proc. 90-11 doesn’t apply to this form.

(4) Form 8328 is due the 15th of the second month (1 month and 15 days) following the end of the calendar year.

(5) Always perfect the entity information.

(6) Part I, Report Number

1. A zero, N/A, dash or none aren’t acceptable entries.

2. The valid range for this form is 900 - 999.

(7) Part II, Line 1, Total Volume Cap

1. A zero, N/A, dash, or none aren’t acceptable entries.

(8) Part II, Line 5, Total Volume Cap

(9) Part II, Line 6, Unused Volume Cap

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. Compute by subtracting Line 5 from Line 1.

(10) Part II, Line 11, Total Carryforward Amount

1. Compute by adding Lines 7 through 10j, not to exceed the amount on line 6.

If	Then
the total of lines 7 through 10j is greater than line 6,	enter the amount from line 6 in line 11.
line 11 is blank, and there are entries in lines 7 - 10j,	1) Add the amounts on lines 7 through 10j. 2) Compare the total of lines 7 - 10j, to the amount on line 6. 3) If the total of lines 7 - 10j is equal to or less than the amount on line 6, enter the total of lines 7 through 10j in line 11.
line 11 and lines 7 through 10j are blank, but Part III, lines 12 through 15 have an amount,	1) Enter a "1" in line 11. 2) Continue processing the return.
line 11 and lines 7 through 10j are blank, and Part III, lines 12 through 15 are blank,	1) Enter a "1" in line 11. 2) Continue processing the return.

(11) Part III, Line 14, Unused Volume Cap Available for Carryforward

1. Compute by subtracting line 13 from line 12.

(12) Part III, Line 15, Amount elected to Carryforward

(13) Form 8328, Signature

(1) Do not edit a tax period on Form 8038-CP. The transcribed "Interest Payment Date" generates the tax period. The first valid tax period is 02/17/2009. If a tax period (IPD) is not present, refer to paragraph (9) below.

(2) All money fields is transcribed in dollars and cents.

(3) Form 8038-CP requires "expedite processing" to ensure the refund is sent out within 45 days from the received date (6 day cycle). If found in a batch other than 6 day cycle, pull out for special handling for “ISRP walk through”.

(4) Refer to IRM 3.11.26.3.8.2 for Form 8038-CP statute procedures.

(5) Form 8038-CP is a refund return and the 45-day jeopardy / $100 million dollar refunds apply. See IRM 3.11.26.3.8.7 Form 8038-CP Refund Return / 45-day Jeopardy / $100 Million Dollar Refunds for additional information.

(6) Effective January 01, 2022, programming was revised to allow the Issuer’s entity information located in Part II (lines 7 through 11) to post to Master File as the primary EIN (module). Form 8038-CP can also be filed electronically.

(7) Form 8038-CP was also revised effective January 1, 2022, which includes new explanation codes (lines 21c, 23b, 24b) and Schedule A, Specified Tax Credit Bonds Interest Limit Computation.

(8) New CRX letter 6436C, Form 8038-CP Missing Information Request, replaced CRX letter 4617c when corresponding for missing and/or incomplete information pertaining to Form 8038-CP,

(9) The following fields must be edited by Field Assistance Support Team (FAST) prior to receipt in Code and Edit. All FAST editing is done in green. If these fields haven’t been edited or require additional research, contact FAST via secured e-mail as outlined below. FAST will provide a response within 24 hours. The FAST manager, Submission Processing Code and Edit P&A analyst and the TEGE HQ analyst with oversight of this program must also be copied (cc) on the e-mail.

• Part I, line 1, Payee name

• Part I, line 2, Payee EIN

• Part II, line 7, Issuer’s Name

• Part II, line 8, Issuer’s EIN

• Part II, line 10, Report Number

• Part III, line 18, Interest Payment Date

(10) During the editing process, if you need to contact FAST for correction or clarification on one of the items above refer to the following procedures. This also applies to Form 3210 discrepancies.

1. Contact is initiated by the Code and Edit lead (or back-up) to the FAST lead through secured e-mail.

2. Attach a scanned copy of the Form 8038-CP to the secured email and provide an explanation as to what needs to be corrected on the return (i.e., No report number, invalid EIN, Form 3210 discrepancy, etc.).

3. Copy (cc) these individuals on the e-mail:
   - FAST manager
   - Code and Edit OSPC P&A analyst
   - TEGE HQ analyst with oversight of the TEB program

4. FAST will provide a response within 24 hours. If a response is not received within 24 hours, notify the OSPC P&A analyst who will contact the FAST manager.

(11) A return may also be annotated with "SOL" (Statute of Limitations) or "True Duplicate" (if applicable) in the top left margin of the Form 8038-CP. This editing is done in green by FAST. If the return is a statute of limitation (SOL), then CCC "X" must also be edited on the document. If the return is a "True Duplicate" CCC "O" is not required.

(12) Always perfect the entity in Part I. Refer to IRM 3.11.26.3.7 ,General Entity Perfection, for additional information.

(13) The Part I entity area on a Form 8038-CP identifies the Payee or entity that receives the credit payment. The entity area in Part I contains the following lines 1, 2, 3, and 4. Always perfect these lines as needed.

1. Name of entity to receive credit payment (line 1).

2. Employer Identification Number (line 2).

3. Street address (line 3).

4. City, town or post office, state and ZIP code (line 4).

(14) Edit CCC "C" in Part III, within lines 18 - 19c of Form 8038-CP. CCC "C" must be edited on all Forms 8038-CP. This Indicates the return is subject to the sequestration decrease per the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, relating to certain automatic reductions effective March 1, 2013.

(15) During annual implementation of the new sequestration percentage rate it will be necessary to hold all Forms 8038-CP until the revised rate is programmed. This normally occurs in September and October. SERP Alerts will be issued providing specific dates when the time approaches. Code and Edit will follow normal procedures in editing the returns. Upon completion, the C&E clerk will record all pertinent information onto an Excel spreadsheet and provide it to the P&A analyst who has oversight of Rejects. The P&A analyst will monitor the returns daily to ensure credit payments are refunded prior to the Interest Payment Date (IPD). Rejects will issue manual refunds as necessary during the holding period in order to meet an IPD at the applicable sequestration percentage rate.

(16) If a reply to the 6436c letter is attached to a Form 8038-CP take the following action.

1. Pull the return from the batch.

2. Attach Form 3210 and route to Rejects.

3. Annotate "6436c Reply" on the Form 3210.

(17) Name Control, Part I, Line 1

Effective January 01, 2022, the Part II Issuer’s entity will post to Master File as the primary EIN. To ensure the correct name control is edited properly, refer to the instructions below.

1. The Name Control consists of four or less alpha and/or numeric characters derived from the first name line.

2. Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions.

3. If the entity in Part I, line 1 and Part II, line 8 is the same, perfect the name control by editing or underlining the first four characters of the name in Part I, line 1.

4. If the entity in Part I, line 1, is different than the entity in Part II, line 7, perfect the name control by editing or underlining the first four characters of the name in Part II, line 7.

(18) Part 1, Line 2, Employer Identification Number (EIN) (Payee)

The EIN must be edited by FAST before Code and Edit receives it.

(19) Part II, Line 7, Issuer’s Name

1. The Issuer’s Name (line 7) must be edited by FAST before Code and Edit receives it

(20) Part II, Line 8, Employer Identification Number

1. The Issuer’s EIN (line 8) must be edited by FAST before Code and Edit receives it.

(21) Part II, Line 9, Number and Street

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. Research for a valid address when necessary.

(22) Part II, Line 10, Report Number

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. The valid report number range for this form is 800-899, 200-299 and 400-499.

(23) Part II, Line 11, City, Town or Post Office, State and ZIP Code

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. Research for a valid address when necessary.

(24) Part II, Line 12, Date of Issue

1. A zero, N/A, dash, or none isn’t an acceptable entry.

(25) Part II, Line 13, Name of Issue

1. If unable to perfect, leave blank.

(26) Part II, Line 14, CUSIP Number

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 14 contains the word "NONE", it’s a valid entry and does not require editing.

(27) Part II, Line 17a, Variable/Fixed Rate Check Boxes

1. The due date is determined based on which applicable check box is marked. Acceptable entry is either "1" (for variable rate) or "2" (for fixed rate). Refer to the table below to determine the correct due date.

2. Blank, zero, N/A, dash, or none isn’t an acceptable entry.

3. If the form revision is prior to 2010, edit a "2" in the right margin next to line 17b as "17a".

(28) Part II, Line 17b, Issue Price

1. A zero, N/A, dash, or none isn’t an acceptable entry.

(29) Part II, Line 17c, Type of Bond Code

1. Valid range is: 102, 103, 104, 105, 109 or 110.

2. If entry is other than the above valid range or blank then edit "000" (zero).

3. If form revision is prior to 01/2022, edit line 17c “000”.

(30) Part II, line 18, Interest Payment Date (IPD)

The Interest Payment Date must be edited by FAST prior to routing to Code and Edit.

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. The IPD date can’t be prior to 02/17/2009.

(31) Part III, line 19a, Interest Payable to Bondholders

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. Determine (if possible) from the return or attachments if the bond is a "Build America Bond" (BAB) or a "Recovery Zone Economic Development Bond" (RZEDB).

(32) Part III, Line 19b, Applicable Credit Rate

(33) Part III, Line 19c, Interest Payable to Bondholders Based on Applicable Credit Rate.

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. If Form 8038-CP revision is 01/2022, a Schedule A must be attached to substantiate the amount entered on line 19c.

(34) Part III, Line 20a through 20f, Amount of Credit Payment to be Received.

1. A zero, N/A, dash, or none isn’t an acceptable entry.

2. There must be an entry on either line 20a, 20b, 20c, 20d, 20e or 20f.

3. Only one entry can be present.

(35) Part III, Line 21a, Net Increase to Previous Payments or Line 21b, Net Decrease to Previous Payments

1. Line 21a and 21b can be blank,

2. Only one line (21a or 21b) can have an entry.

3. If line 21a contains an amount, line 21b must be blank.

4. If line 21b contains an amount, line 21a must be blank.

5. If there is an entry on both line 21a and 21b, compute the total to be entered for only one line.

(36) Part III, Line 21c, Net Increase or Decrease Explanation Code

1. If an amount is entered on either line 21a or 21b, an explanation code must be present on line 21c.

2. Three position numeric only entry.

3. Valid range is 211, 212, 213, 214, 215, 216, 217, 218 or 219

4. If entry is other than the above range or form revision is prior to 01/2022, then edit "000" (zero).

(37) Part III, Line 22, Amount of Credit Payment to be Received

1. A zero, N/A, dash, or none isn’t an acceptable entry.

Note: Zero is only acceptable when the computed amount results in zero.

2. When applicable verify the math to ensure line 22 is computed correctly based on the applicable lines 19a, 19c, 20a - 20f (only one line can be present) and line 21a (plus) or 21b (minus) (if present).

(38) Part III, Line 23a, Has There Been a Change to the Debt Service Schedule Check Boxes

1. Valid entry is "1" for "Yes" or "2" for "No" and/or Blank.

2. If the Debt Service Schedule (DDS) is missing, FAST will take the necessary action to obtain the missing schedule.

(39) Part III, Line 23b, Debt Service Schedule Explanation Code

1. If line 23a check box is marked "Yes", then an explanation code must be entered in line 23b.

2. Three position numeric entry only.

3. Valid entry is 231, 232, 233, 234, 235, 236, 237, 238, or 239.

4. If entry is other than the above range or form revision is prior to 01/2022, then edit "000" (zero).

(40) Part III, Line 24a, Are You Current on Your Interest Payments Check Box

1. Valid entry is 1, 2 or blank.

(41) Part III, Line 24b, Explanation Code

1. If line 24a check box is marked "No", then an explanation code must be entered in line 24b.

2. Three position numeric entry only.

3. Valid entry is 241, 242, 243, 244, 245, 246, 247, 248 or 249.

4. If entry is other than the above range or form revision is prior to 01/2022, then edit "000" (zero).

(42) Part III, Line 25, Final Interest Payment Date Check Box

(43) Signature

1. A signature must be present on Form 8038-CP.

2. A faxed signature is acceptable.

3. An electronic (digital) signature is not acceptable.

(44) Paid Preparer Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN)

1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box at the bottom-right corner of Form 8038-CP.

2. The preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

3. A PTIN begins with a “P”, followed by an eight digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

(45) Paid Firm’s EIN

1. The Firm’s EIN is located below the PTIN box at the bottom-right corner of Form 8038-CP.

2. The Firm’s EIN is a nine-digit number. Circle the EIN if all zeroes or all nines.

(46) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Preparer’s phone number is more than 10 digits, no action is required. .

4. If the Paid Preparer's phone number is incomplete, illegible, or less than 10 digits, circle the phone number.

(1) Transcribe all money fields in dollars only.

(2) The current form revision is Nov. 2012.

(3) Don’t edit a tax period on Form 8038-B. The transcribed "Date of Issue" generates the tax period. The first valid tax period is 02/17/2009. If the "Date of Issue" is before 02/17/2009, edit ERS AC 211.

(4) In order to properly edit Part II, lines 1b or 1c, a "Debt Service Schedule" must be attached. If one isn’t attached, edit ERS AC 211.

(5) Always perfect the Entity information.

(6) Part I, Line 4, Report Number

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. The valid range for this form is 100 - 499.

(7) Part I, Line 7, Date of Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

(8) Part I, Line 9, CUSIP Number.

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 9 contains the word "NONE", it’s a valid entry and does not require editing.

(9) Part II, Lines 1a, 1b, or 1c, Type of Bond. Only one box can be checked and is edited to the right of Part II, line 1b.

1. Valid entry is 1, 2, or 3.

(10) Part II, Line 2, First Interest Payment Date

(11) Part II, Line 3, Interest Payment Date Frequency, Check Box

1. Edit the applicable "1" digit code to the right of Part II, line 3 based on the related IPD frequency check box marked.

(12) Part III, Lines 1a - 1h and Lines 2a - 2d, Purpose of Issue,

1. A blank, N/A, dash, or none aren’t acceptable entries.

2. More than one dollar amount can be present in either Part III, line 1a - 1h or Part III, line 2a - 2d. There can’t be entries on both line 1a - 1h and line 2a - 2d.

(13) Part III, Line 3, Total Issue Price

1. A zero, N/A, dash, or none aren’t acceptable entries.

(14) Part III, Line 4, Obligations are TANs or RANs, or BANs, Check Box

1. Valid if marked or blank.

(15) Part III, Line 5, If Obligations are in the form of a Lease or Installment Sale, Check Box

1. This field is valid if marked or blank.

(16) Part IV, Line 2, Final Maturity Date

1. Blank, zero, N/A, dash, or none aren’t acceptable entries.

(17) Part IV, Line 3, Weighted Average Maturity Years

1. The entry can be in decimals out to the 2nd position as XX.XX. Edit as such.

   Example: 1 - Line entry is five and one half, enter 05.50.
   2 - Line entry is 10 3/4, enter 10.75.
   3 - Line entry is 5.26, enter 05.26.

2. Blank is acceptable.

(18) Part IV, Line 4, Yield Percentage

1. If alphabetical entries are present, circle out the entry.

2. Blank is acceptable.

3. The entry can be in decimals out to the 4th position as XX.XXXX.

(19) Part IV, Line 5a, Is the Issue a Variable Rate Issue, Check Box

1. This field is valid if marked or blank.

(20) Part VI, Line 3, Last Date on which the Refunded Bonds will be Called

(21) Part VI, Line 4, Date(s) the Refunded Bonds were Issued

(22) Part VII, Line 1, State Volume Cap allocated to the Issue Amount

(23) Part VII, Line 2b, Final Maturity Date of the GIC

(24) Part VII, Line 4a, Loan Made from Proceeds of another Tax Exempt Issue, Check Box

1. This field is valid if marked or blank.

(25) Part VII, Line 4b, Date of Master Pool Obligation

(26) Part VII, Line 5a, If the Issuer entered into a Hedge, Check Box

1. This field is valid if marked or blank.

(27) Part VII, Line 6, If the Issuer has superintegrated the Hedge, Check Box

1. This field is valid if marked or blank.

(28) Part VII, Line 7, If the Issuer elected to Pay a Penalty in Lieu of Arbitrage Rebate, Check Box

1. This field is valid if marked or blank.

(29) Part VII, Line 8, If the Issuer Established Procedures to ensure Nonqualified Bonds are Remediated Under Section 1.141-12, Check Box

1. This field is valid if marked or blank.

(30) Part VII, Line 9, If the Issuer Established Procedures to monitor the Requirements under IRC Section 148, Check Box

1. This field is valid if marked or blank.

(31) Signature

(32) Paid Preparer Social Security Number (SSN) or Preparer Tax Identification Number (PTIN)

1. The Paid Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the SSN/PTIN box at the bottom-right corner of Form 8038-B, Page 2.

2. The Paid Preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

3. A PTIN begins with a "P", followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

(33) Paid Preparer Employer Identification Number (EIN)

1. The Paid Preparer's EIN is located below the SSN/PTIN box at the bottom-right corner of Form 8038-B, Page 2.

2. The Paid Preparer's EIN is a nine-digit number. Circle the EIN if all zeroes or all nines.

(34) Paid Preparer Phone Number

1. The Paid Preparer's phone number is located below the Paid Preparer's EIN at the bottom right hand corner.

2. No action is required on amended returns.

3. If the Paid Preparer's phone number is more than 10 digits, no action is required.

4. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 digits, circle the phone number.

(35) Part VIII, Line 1 Consent to Disclosure of Certain Information , Check Box

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. If the "Yes" box is checked, edit a "1" to the right of Part VIII, line 1.

3. If the "No" box is checked, edit a "2" to the right of Part VIII, line 1.

4. If both boxes are checked or neither box is checked edit a "2" to the right of Part VIII, line 1.

(1) Transcribe all money fields in dollars only.

(2) Don’t edit a tax period on Form 8038-TC. The transcribed "Date of Issue" generates the tax period. The first valid tax period is 03/18/2010. If the date of issue is before to 03/18/2010, edit ERS AC 211.

(3) The current form revision is Sept. 2017.

(4) Always perfect the Entity information.

(5) Part I, Line 4, Report Number

1. A zero, N/A, dash, or none aren’t acceptable entries.

2. The valid report number range for this form is 100 - 499.

(6) Part I, Line 7, Date of Issue

1. A zero, N/A, dash, or none aren’t acceptable entries.

(7) Part I, Line 9, CUSIP Number

1. The CUSIP number is a combination of nine alpha and numeric characters.

2. If line 9 contains the word "NONE", it’s a valid entry and does not require editing.

(8) Part II, Line 1, Tax Credit Bond Code

1. Blank isn’t an acceptable entry.

2. Form 8038-TC schedules aren’t applicable for Tax Credit Bond Codes 101, 106, 107 or 108.

3. Tax Credit Bond codes 102, 103, 104 and 105 require the related Schedules A, B, C or D (see table below).

4. If blank or Tax Credit Bond code is different from the code located on the attached Form 8038-TC, Schedules A, B, C or D, perfect from the Form 8038-TC Schedule.

5. If blank and unable to perfect, edit ERS AC 211.

If	Then
Part II, line 2 reads "Qualified Forestry Conservation Bonds",	edit "101".
Part II, line 2 reads "New Clean Renewal Energy Bonds", (Schedule A required)	edit "102".
Part II, line 2 reads "Qualified Energy Conservation Bonds", (Schedule B required)	edit "103".
Part II, line 2 reads "Qualified Zone Academy Bonds", (Schedule C required)	edit "104".
Part II, line 2 reads "Qualified School Construction Bonds", (Schedule D required)	edit "105".
Part II, line 2 reads "Clean Renewal Energy Bond",	edit "106".
Part II, line 2 reads "Midwestern Tax Credit Bonds",	edit "107".
Part II, line 2 reads "Other",	edit "108".

(9) Part II, line 3, Has the issuer made an irrevocable election to apply section 6431(f) check box.

1. Blank isn’t acceptable. Check box must be marked.

(10) Part II, Line 4, First Interest Payment Date.

1. In order to properly edit Part II, lines 4 and 5, Part II line 3 check box must be marked "Yes" and a Debt Service Schedule must be attached.

2. If the debt service schedule isn’t attached, edit ERS AC 211.

(11) Part II, Line 5, Interest Payment Date Frequency, Check Box.

1. Valid entries are blank 1, 2, 3, 4 or 5.

2. Edit the applicable Interest Payment Date Frequency code (see table below) in the right hand margin of Part II, line 3, based on the specific check box that is marked.

(12) Part III, Line 1, Issue Price

1. A zero, N/A, dash, or none aren’t acceptable entries.

(13) Part III, Line 3, Final Maturity Date

1. Blank, zero, N/A, dash, or none aren’t acceptable entries.

(14) Part III, Line 4, Applicable Credit Rate.

1. Change to read as above percentage info. The entry can be in decimals out to the 2nd position as XX.XX. Edit as such.

   Example: - Line entry is five and one half, edit 05.50 in Part III, line 4.
   - Line entry is 10 3/4, edit 10.75 in Part III, line 4.
   - Line entry is 5.26, edit 05.26 in Part III, line 4.

2. If blank, edit from attachments.

3. If you can’t perfect it, leave blank.

(15) Part III, Line 5, Maximum Term

1. The entry can be in decimals out to the 2nd position as XX.XX. Edited as such.

   Example: - Line entry is five and one half, enter 05.50 in Part III, line 5.
   - Line entry is 10 3/4, enter 10.75 in Part III, line 5.
   - Line entry is 5.26, enter 05.26 in Part III, line 5.

2. If blank, edit from attachments.

3. If you can’t perfect it, leave blank.

(16) Part III, Line 6, Permitted Sinking Fund Yield

1. The entry can be in decimals out to the 4th position as XX.XXXX. Edited as such.

   Example: - Line entry is five and one half, edit 05.5000 in Part III, line 6.
   - Line entry is 10 3/4, edit 10.7500 in Part III, line 6.
   - Line entry is 5.26, edit 05.2600 in Part III, line 6.

2. If blank, edit from attachments.

3. If you can’t perfect it, leave blank.

(17) Part III, Line 7, Interest Rate on Bonds

1. The entry can be in decimals out to the 4th position as XX.XXXX. Edited as such.

   Example: - Line entry is five and one half, edit 05.5000 in Part III, line 7.
   - Line entry is 10 3/4, edit 10.7500 in Part III, line 7.
   -Line entry is 5.26, edit 05.2600 in Part III, line 7.

2. If blank, edit from attachments.

3. If you can’t perfect it , leave blank.

(18) Part III, Line 8a, Variable Rate Issue Check Box

1. Valid entry is 1 or blank.

(19) Part IV, Line 1, Sales Proceeds

1. A zero, N/A, dash, or none aren’t acceptable entries.

(20) Part IV, Line 2, Proceeds Used for Bond Issuance Costs

1. N/A, dash, or none aren’t acceptable entries

2. An entry of zero, or an amount are acceptable.

(21) Part IV, Line 4, Expected Available Project Proceeds

(22) Part IV, Line 7, Total Proceeds