Form 8038-GC

What is Form 8038 GC

Form 8038-GC, known as the Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales, is a document utilized by the Internal Revenue Service (IRS) to gather data about small tax-exempt bonds issued by governmental bodies. 

This form aims to report the issuance of tax-exempt bonds with a total face amount of $100,000 or less.

When to Use IRS Tax Form 8038-GC

IRS form 8038-GC should be used in the following situations:

• When a state or local government issues tax-exempt bonds with an aggregate face amount not exceeding $100,000.
• For reporting installment sales or leases if the total payments from the beginning of the agreement through the end of the calendar year are $100,000 or less.
• Borrowers such as public schools, local governments, and other small governmental entities typically utilize this form when they need to finance projects like infrastructure development or school renovations through small bond issuances.

How to Fill Out Form 8038 GC Instruction

Filling out form 8038-GC requires accuracy and attention to detail. Follow the step-by-step guide below to ensure complete compliance:

• Enter the issuer's name, Employer Identification Number (EIN), and the address.
• Provide information on the bond issue, including the issue price, date of issuance, and CUSIP number if available.
• Detail the purposes for which the bond proceeds will be used.
• Specify the type of issue by selecting from options such as 'Public Safety,' 'Education,' 'Health and Hospital,' and others.
• Report any sinking or reserve fund amount established for the bonds.
• Provide the particulars of any credit enhancements, such as bond insurance or a letter of credit.
• State whether the issue meets various IRS requirements, including arbitrage and expenditure specifications.
• Sign the form certifying the accuracy of the information.

When to File 8038-GC Form

The form 8038-GC should be filed by the 15th day of the second calendar month after the close of the calendar quarter in which the bond was issued. Timely filing is crucial to avoid penalties imposed by the IRS for late submissions.