Instructions for Form 8038 (Rev. April 2011) Information Return for Tax-Exempt Private Activity Bond Issues Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service Where To File File Form 8038 and any attachments with Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201. Private delivery services. You can use certain private delivery services designated by the IRS to meet the "timely mailing as timely filing/paying" rule for tax returns and payments. These private delivery services include only the following: � DHL Express (DHL): DHL Same Day Service. � Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. � United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing date. Private delivery services cannot deliver items to P.O. boxes. You CAUTION must use the U.S. Postal Service to mail any item to an IRS P.O. box address. General Instructions Purpose of Form Form 8038 is used by the issuers of tax-exempt private activity bonds to provide the IRS with the information required by section 149 and to monitor the requirements of sections 141 through 150. Note. Information on tax credit and specified tax credit bonds must be reported on Form 8038-TC. Bonds and Recovery Zone Economic Development Bonds. Bonds described in section 1312(c) of the Tax Reform Act of 1986 to which the transitional rules in section 1312 or 1313 apply are not private activity bonds for purposes of information reporting. Report them on Form 8038-G or Form 8038-GC. For rebating arbitrage or paying a penalty in lieu of arbitrage rebate to the Federal Government, use Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate. Who Must File Issuers must file a separate Form 8038 for each issue of the following tax-exempt private activity bonds issued after 1986: � Exempt facility bonds, � Qualified mortgage bonds, � Qualified veterans' mortgage bonds, � Qualified small issue bonds, � Qualified student loan bonds, � Qualified redevelopment bonds, � Qualified hospital bonds, � Qualified 501(c)(3) bonds, � Nongovernmental output property bonds, and � All other tax-exempt private activity bonds. Rounding Off to Whole Dollars You may show the money items on this return as whole-dollar amounts. To do so, drop any amount less than 50 cents and increase any amount from 50 to 99 cents to the next higher dollar. Questions on Filing Form 8038 For specific questions on how to file Form 8038, send an email to the IRS at TaxExemptBondQuestions@irs.gov and put "Form 8038 Question" in the subject line. In the email include a description of your question, a return email address, the name of a contact person, and a telephone number. ! When To File File Form 8038 by the 15th day of the 2nd calendar month after the close of the calendar quarter in which the bond was issued. Form 8038 may not be filed before the issue date and must be completed based on the facts as of the issue date. Late filing. An issuer may be granted an extension of time to file Form 8038 under section 3 of Rev. Proc. 2002-48, 2002-37 I.R.B. 531, if it is determined that the failure to file timely is not due to willful neglect. Type or print at the top of the form, "Request for Relief under section 3 of Rev. Proc. 2002-48." Attach to the Form 8038 a letter explaining why Form 8038 was not filed on time. Also indicate whether the bond issue in question is under examination by the IRS. Do not submit copies of the trust indenture or other bond documents. See Where To File next. Other Forms That May Be Required For tax-exempt bonds other than private activity bonds, use Form 8038-G, Information Return for Tax-Exempt Governmental Obligations, or Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales. Qualified forestry conservation bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, clean renewable energy bonds, and Midwestern tax credit bonds must be filed on Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds. Build America bonds (Direct Pay), build America bonds (Tax Credit), and recovery zone economic development bonds must be filed on Form 8038-B, Information Return for Build America Cat. No. 49974V Definitions Tax-exempt bond. This is any obligation on which the interest is excluded from gross income under section 103. Private activity bond. This includes an obligation issued as part of an issue in which: � More than 10% of the proceeds are to be used for any private business use, and � More than 10% of the payment of principal or interest of the issue is either (a) secured by an interest in property to be used for a private business use (or payments for such property), or (b) to be derived from payments for property (or borrowed money) used for a private business use. It also includes a bond, the proceeds of which (a) are to be used (directly or indirectly) to make or finance loans (other than loans described in section American LegalNet, Inc. www.FormsWorkFlow.com 141(c)(2)) to persons other than governmental units and (b) exceeds the lesser of 5% of the proceeds or $5 million. Exempt facility bond. This is part of an issue of which 95% or more of the net proceeds are to be used to finance an exempt facility listed in sections 142(a)(1) through (15). Exempt facility bonds include qualified enterprise zone facility bonds for use in empowerment zones, enterprise communities, New York Liberty bonds, qualified Gulf Opportunity Zone bonds, qualified Midwestern disaster area bonds, and qualified Hurricane Ike disaster area bonds under sections 1400N(a)(1)(A) and 1400N(a)(2)(A)(i), and recovery zone facility bonds. Qualified mortgage bond. This is part of an issue: 1. Of which all proceeds (except issuance costs and reasonably required reserves) are to be used to finance owner-occupied residences, 2. That meets the requirements of subsections (c) through (i) and (m)(7) of section 143, 3. That does not meet the private business tests of sections 141(b)(1) and (2), and 4. For which repayment