Form 8038-CP Instructions
Quick Links:
How to Fill Out your Form 8038-CP:
Step-by-Step Instructions
- Updated February 27, 2024 - 2.00 PM - Admin, Tax990
Form 8038-CP is an IRS form that the issuers of certain tax bonds can file to claim the refundable credit from the federal government, which is equivalent to a specified percentage of interest payments on those bonds.
Generally, Form 8038-CP is filed by the issuers of Build America bonds (BABs), Recovery Zone Economic Development Bonds (RZEDBs), New Clean Renewable Energy Bonds (NCREB), Qualified Energy Conservation Bonds (QECB), Qualified Zone Academy Bonds (QZAB) and Qualified School Construction Bonds (QSCB).
If you are required to file Form 8038-CP, here are the step-by-step instructions for completing the form.
Instructions to Complete Form 8038-CP
Form 8038-CP consists of three parts:
Part I - Information on Entity That Is To Receive Payment
Part II - Reporting Authority
Part III - Payment of Credit
Part I - Information on Entity That Is To Receive Payment
The first part of the 8038-CP Form requires you to provide the basic details regarding your organization.
-
Line 1:
Enter the name of your organization.
-
Line 2:
Enter the Employer Identification Number (EIN) of your organization.
-
Lines 3 and 4:
Enter your organization’s complete address, including number and street, room/suite, city, state, and ZIP code.
-
Lines 5 and 6:
Enter the details of the designated contact person of your organization, including their Name, Title, and Contact Number.
Part II - Reporting Authority
The second part should be completed in full by the reporting authority (if applicable) if they were authorized by the issuer to claim the refundable credit payment from the IRS. (Example: trustee bank)
-
Line 7:
If the reporting authority is the same as the issuer, you can mention the name mentioned in line 1 and leave the remaining fields blank.
-
Line 8:
The reporting authority’s Employer Identification Number (EIN) should be mentioned here.
-
Lines 9 - 11:
The reporting authority’s complete address should be mentioned. Also, the reporting number assigned by the issuer for the corresponding bond should be mentioned on line 10.
-
Lines 12 and 13:
Enter the name and the date of the bond issue.
-
Line 14:
The Committee on Uniform Securities Identification Procedures (CUSIP) number on the bond with the latest maturity should be mentioned here.
-
Lines 15 and 16:
The details of the designated contact person of the reporting authority should be mentioned here.
-
Line 17a - 17c:
Mention whether the bond is a Variable rate bond or Fixed rate bond. Then , enter the issue price and the corresponding code that denotes the type of bond.
102—New clean renewable energy bonds
103—Qualified energy conservation bonds
104—Qualified zone academy bonds
105—Qualified school construction bonds
109—Build America bonds.
110—Recovery zone economic development bonds
Part III - Payment of Credit
This is the last part of the form, which requires detailed information about the payment of credit for the respective bond.
-
Line 18:
Mention the date of the credit payment to which this requested refund credit is related.
-
Line 19a:
Report the amount of interest payable to the respective bondholders on the interest payment date.
-
Line 19b and 19c:
These lines are applicable only for specified tax credit bonds. The applicable credit rate should be mentioned on 19b. Also, the issuers of NCREBs, QECBs, QZABs, and QSCBs must complete Schedule A and report the amount mentioned on line 3 of Schedule A here.
-
Line 20a - 20f:
In these lines, you must enter the credit amount allowed for the interest payment date. Please note that you must make an entry on one of these lines which is applicable to your bond.
a. For Build America Bonds issuers - Enter the 35% of interest payable
b. Recovery zone economic development bonds - Enter the 45% of interest payable
c. New clean renewable energy bonds - Enter the amount entered on 19a or 19c (whichever
is smaller)d. Qualified energy conservation bonds - Enter the amount entered on 19a or 19c (whichever
is smaller)e. Qualified zone academy bonds - Enter the amount entered on 19a or 19c (whichever
is smaller)f. Qualified school construction bonds - Enter the amount entered on 19a or 19c (whichever
is smaller) -
Line 21a - 20c:
Here, you can enter the adjustment made to previous credit payments, i.e., net increase and decrease to previous payments. Also, mention the explanation codes for both.
-
Line 22:
Enter the amount of credit payment requested. This can be calculated by combining the amount you enter on line 20 with line 21a or 21b.
-
Line 23a - 23b:
Mention if there is any change made to the most recently filed debt service schedule and provide the explanation code as well as the revised debt service schedule.
-
Line 24a - 24b:
Mention whether you have paid or will pay all the interest mentioned on line 19a before the interest payment date.
-
Line 25:
Enter ‘Yes’, if this return is being filed for the final interest payment date for the respective bonds.
Direct Deposit
If you want this refundable credit to be credited as direct deposit on your checking or savings account, you can provide the details of that account in this section.
Signature and Consent
Once you have provided the required information, you can provide your signature and consent in this section.
Paid Preparer
If this return is prepared by a third-party preparer, their details should be provided in this section.
Are there any additional requirements for filing 8038-CP?
Yes, based on the type of bond for the refundable credit payment is requested, you may have to attach Form 8038-CP Schedule A.
Schedule A is required to be attached if you are requesting credit payment allowed under section 6431(f) for the following tax credit bonds:
New Clean Renewable Energy Bonds (NCREB)
Qualified Energy Conservation Bonds (QECB)
Qualified Zone Academy Bonds (QZAB)
Qualified School Construction Bonds (QSCB)
Simplify Your Form 8038-CP filing with Tax 990!
Tax 990, the IRS-authorized e-file provider, provides you with a comprehensive e-filing solution to prepare and e-file your 8038-CP return easily, securely and accurately. We include Form 8038-CP Schedule A for free as well.
Steps to File Form 8038-CP:
Follow these simple steps to file your Form 8038-CP electronically with Tax990
Step 1
Add organization Details
Enter your organization’s EIN and the basic information such as name, address, and principal
officer details.
Step 2
Choose Tax Year and Form 8038-CP
Choose the tax year for which you are required to file, select Form 8038-CP and proceed.
Step 3
Provide the required form information
Provide information about the reporting authority, recipient, and bond, and subsequently, utilize our Form-based filing method to input all the necessary data on your Form 8038-CP.
Step 4
Review Your Form 8038-CP
After providing all the required information, review your form and proceed.
Step 5
Transmit it to the IRS
Once you have reviewed your form and verified your information, you can transmit 8038-CP to the IRS.