What is the purpose of Form 8038-T?

The primary purpose of Form 8038-T is to report the use of proceeds from a municipal bond issue and calculate any arbitrage rebate or yield reduction payment owed by the issuer to the Internal Revenue Service. The form also provides important information for tax-exempt organizations regarding their investment activities and compliance with relevant tax laws.

Form 8038-T is a tax form used by issuers to report the investment of proceeds from a municipal bond issue, including information on the use of proceeds and arbitrage rebate calculations. It is filed annually with the Internal Revenue Service (IRS) according to the Internal Revenue Code.

What information is required on Form 8038-T?

Form 8038-T requires detailed information about the investments, including the issue date, maturity date, principal amount, interest rate, and yield. It also asks for information about any administrative costs or guarantees associated with the investments.

What happens if an organization fails to file Form 8038-T?

If an organization fails to file Form 8038-T, it may be subject to penalties. The penalty for failing to file on time is 5% of the amount of UBTI per month, up to a maximum of 25%. If the failure to file continues beyond 60 days after notice from the IRS, there is an additional penalty of $50 per day.

Who must file Form 8038-T?

Tax-exempt organizations that have investments which may give rise to unrelated business taxable income (UBTI) must file Form 8038-T. This includes investments in obligations issued as part of an original issue discount (OID) transaction, variable rate obligations, and certain other types of investments.

When is Form 8038-T due?

Form 8038-T must be filed annually with the IRS by May 15 for the preceding calendar year. However, if the organization's taxable year ends other than on December 31, it must file the form within 2½ months after the close of its taxable year.

What are yield reduction payments?

Yield reduction payments are amounts paid by the issuer of a municipal bond to reduce the yield on the issue below a certain percentage. These payments are required if the issuer uses proceeds from the sale of the bonds for investments that earn less than a certain percentage over the yield on the issue.

What is an arbitrage rebate?

An arbitrage rebate is a refundable tax that the issuer of a municipal bond is required to pay if it uses proceeds from the sale of the bonds to make investments that yield more than a certain percentage over the yield on the issue. The arbitrage rebate is calculated based on the difference between the actual yield and the yield limit, as well as other factors.

What are the sections in Form 8038-T?

Form 8038-T has nine sections. Section A asks for identifying information about the issuer and the bond issue. Sections B, C, D, and E provide information on the proceeds of the issue, investments, and other details related to the use of proceeds. Section F is for additional information. Sections G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z, AA, AB, AC, AD, AE, AF, AG, and GH are for various calculations and other information related to the rebate amount and yield reduction payments.

Where is Form 8038-T filed?

Form 8038-T should be filed with the Internal Revenue Service, Attn: Application and Registration Unit, Cincinnati, OH 45999.

What is Form 8038-T used for?

Form 8038-T is used by tax-exempt organizations to report information about certain types of investments they have made, specifically those that may give rise to unrelated business taxable income (UBTI). This form helps the IRS determine whether there is any arbitrage rebate or yield reduction payment due.

Form 8038-T

Fill out this form

Chat with document

Create Web Form

Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate

Rev. October 2021

Form 8038-T is a tax form used for reporting Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate under sections 143(g)(3), 148(f) and 103(c)(6)(D) of the Internal Revenue Code of 1954. The form includes reporting authority information, arbitrage rebate and yield reduction payments, penalty in lieu of arbitrage rebate, late payments, and miscellaneous information. Reporting entities are required to provide Issuer’s name, EIN, address, date of issue, issue price, CUSIP number, officer or contact person details, type of issue, and calculation dates among other details.

Instructions

Form 8038-T Instructions - Instructions for Form 8038-T, Arbitrage Rebate, Yield Reduction, and Penalty in Lieu of Arbitrage Rebate

Search tags

FAQ

What is the purpose of Form 8038-T?
The primary purpose of Form 8038-T is to report the use of proceeds from a municipal bond issue and calculate any arbitrage rebate or yield reduction payment owed by the issuer to the Internal Revenue Service. The form also provides important information for tax-exempt organizations regarding their investment activities and compliance with relevant tax laws.
What is Form 8038-T?
Form 8038-T is a tax form used by issuers to report the investment of proceeds from a municipal bond issue, including information on the use of proceeds and arbitrage rebate calculations. It is filed annually with the Internal Revenue Service (IRS) according to the Internal Revenue Code.
What information is required on Form 8038-T?
Form 8038-T requires detailed information about the investments, including the issue date, maturity date, principal amount, interest rate, and yield. It also asks for information about any administrative costs or guarantees associated with the investments.
What happens if an organization fails to file Form 8038-T?
If an organization fails to file Form 8038-T, it may be subject to penalties. The penalty for failing to file on time is 5% of the amount of UBTI per month, up to a maximum of 25%. If the failure to file continues beyond 60 days after notice from the IRS, there is an additional penalty of $50 per day.
Who must file Form 8038-T?
Tax-exempt organizations that have investments which may give rise to unrelated business taxable income (UBTI) must file Form 8038-T. This includes investments in obligations issued as part of an original issue discount (OID) transaction, variable rate obligations, and certain other types of investments.
When is Form 8038-T due?
Form 8038-T must be filed annually with the IRS by May 15 for the preceding calendar year. However, if the organization's taxable year ends other than on December 31, it must file the form within 2½ months after the close of its taxable year.
What are yield reduction payments?
Yield reduction payments are amounts paid by the issuer of a municipal bond to reduce the yield on the issue below a certain percentage. These payments are required if the issuer uses proceeds from the sale of the bonds for investments that earn less than a certain percentage over the yield on the issue.
What is an arbitrage rebate?
An arbitrage rebate is a refundable tax that the issuer of a municipal bond is required to pay if it uses proceeds from the sale of the bonds to make investments that yield more than a certain percentage over the yield on the issue. The arbitrage rebate is calculated based on the difference between the actual yield and the yield limit, as well as other factors.
What are the sections in Form 8038-T?
Form 8038-T has nine sections. Section A asks for identifying information about the issuer and the bond issue. Sections B, C, D, and E provide information on the proceeds of the issue, investments, and other details related to the use of proceeds. Section F is for additional information. Sections G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z, AA, AB, AC, AD, AE, AF, AG, and GH are for various calculations and other information related to the rebate amount and yield reduction payments.
Where is Form 8038-T filed?
Form 8038-T should be filed with the Internal Revenue Service, Attn: Application and Registration Unit, Cincinnati, OH 45999.
What is Form 8038-T used for?
Form 8038-T is used by tax-exempt organizations to report information about certain types of investments they have made, specifically those that may give rise to unrelated business taxable income (UBTI). This form helps the IRS determine whether there is any arbitrage rebate or yield reduction payment due.

HOW TO

How to fill out Form 8038-T for free, online in 3 easy steps:

1
Open form template in editor
Click on the “Get this template” button.
2
Fill out Form 8038-T
Wait a moment and you will be redirected to our online PDF Filler app.
3
Download file
Download your completed Form 8038-T for free. You can also save it to a cloud storage.

ABOUT

Internal Revenue Service (IRS) Forms

Form 8038-T is one of the official tax forms used in the United States to report income, claim deductions and credits, calculate tax liability, and fulfill other tax-related obligations. The IRS is the federal agency responsible for administering and enforcing the internal revenue laws in the United States.

Here are some examples of Internal Revenue Service forms:

Form 1040: This is the primary individual income tax return form used by most taxpayers. It is used to report various types of income, claim deductions and credits, calculate tax liability, and determine whether a taxpayer owes additional tax or is entitled to a refund.

Form 1099: There are different variations of Form 1099, such as 1099-MISC, 1099-INT, 1099-DIV, etc. These forms are used to report income received by individuals or businesses from various sources other than employment, such as self-employment income, interest income, dividend income, and rental income.

Form W-2: This form is used by employers to report wages paid to employees and the taxes withheld from their pay. Employees use the information on Form W-2 to complete their individual tax returns.

Form 941: Employers use this form to report employment taxes, including federal income tax withheld, Social Security tax, and Medicare tax, for their employees.

Form 1065: This form is used by partnerships to report their income, deductions, and tax liability. Partnerships themselves do not pay income tax; instead, the partners report their share of partnership income on their individual tax returns.

Form 1120: This is the corporate income tax return form used by C corporations to report their income, deductions, and tax liability.

Form 990: This form is used by tax-exempt organizations, such as nonprofits and charities, to report their financial information, activities, and compliance with tax laws.

Form 8862: This form is used by taxpayers who previously claimed the Earned Income Tax Credit (EITC) but had it disallowed, and now want to claim it again.

These are just a few examples of the numerous IRS forms that exist to fulfill various tax-related obligations. The specific forms required for an individual or business depend on their unique circumstances, income sources, and deductions. It's advisable to consult the official website of the Internal Revenue Service (www.irs.gov) or seek professional tax advice to obtain accurate and up-to-date information regarding the specific IRS forms relevant to your tax situation.

FEATURES

PDF Filler

The easiest way to fill Form 8038-T online

Quickly fill out Form 8038-T
Looking for a way to quickly fill Form 8038-T online? With our online free PDF form filler, you’ll know how to how to edit and fill this pdf document in less than a minute.
Easy to use online PDF editor
Fed up with printing out PDF files so you can edit them, before rescanning and sending them back? Edit PDF documents for free online. Use our online pdf editor to save time and paper.
Great tools, all platforms
Wondering how to fill in Form 8038-T on a Mac, or maybe how to use a PDF filler free? Our online PDF tools work on all platforms.
Secure file storage
Completed "Form 8038-T" files are stored in a secured database managed by Amazon Cloud hosting. You can delete your files from our system anytime. In any case, these files are automatically deleted after 24 hours.
Chat with Form 8038-T
Chat with "Form 8038-T" on Chatize that is a free PDF reader assistant. Ask questions and get answers from "Form 8038-T". Just click on Chat With Document button above.

Products

Docs

Websites

About