Form 8038-G

What is Form 8038-G

IRS Form 8038-G, Information Return for Tax-Exempt Governmental Bonds, is a specific IRS form that governmental issuers must fill out when they issue tax-exempt bonds. The form is essential to the compliance process and is required under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). 

It provides the IRS with important information about the issued bonds, including the issuer's details, description of the bond, and how proceeds from the bond are to be utilized.

Who needs to file Form 8038-G

Any governmental body that issues tax-exempt bonds is required to submit Form 8038-G. This includes state and local governments and subdivisions like school districts or transportation authorities. The form must be submitted if the bond is more than $100,000. For bonds less than $100,000, the issuer can use Form 8038-GC, which is a consolidated form.

Why is Form 8038-G important

Form 8038-G is vital for ensuring transparency and regulatory compliance for tax-exempt bonds. Filling it out correctly helps the IRS ensure that the bonds meet the requirements for tax-exempt status. Failure to file, or incorrectly filing, this form can result in penalties and potentially jeopardize the tax-exempt status of the bonds.

Form 8038-G Instructions: How to File

Here's a step-by-step guide for filing IRS Form 8038-G:

Step 1: Collect Information

Before you start filling out the form, ensure you have all the necessary information. This includes:

• Issuer's name, address, and Employer Identification Number (EIN);
• Description of the bond;
• Issue price;
• Issue date;
• Maturity date;
• Information on the use of proceeds.

Step 2: Fill Out the Form

Form 8038-G is divided into different parts and schedules, where you’ll enter the various details about the bond. Follow the form instructions carefully to ensure accuracy.

Step 3: Review Carefully

Once the form is filled out, double-check to make sure all information is accurate and complete. This is a crucial step, as errors can result in penalties or delays.

Step 4: Submit the Form

Form 8038-G must be submitted separately from any other forms the issuer may be filing with the IRS. The submission deadline is generally the 15th day of the 2nd calendar month after the close of the calendar quarter in which the bond is issued.

Step 5: Keep Records

Retain a copy of the completed form and any related documentation for at least three years following the redemption or maturity of the bond. This is important for future reference or in case of an audit.