Late filing.

An issuer may be granted an extension of time to file Form 8038-B under Rev. Proc. 2002-48, 2002-37 I.R.B. 531. Type or print at the top of the form, "Request for Relief under Section 3 of Rev. Proc. 2002-48." See Rev. Proc. 2002-48 for complete information on requirements for an extension of time to file Form 8038-B.

Build America bond (Tax Credit).

This is an issue of taxable state or local governmental bonds (excluding private activity bonds under section 141) as defined in section 54AA(d) that provides a tax credit to the holder of the bond.

Build America bond (Direct Pay).

This is an issue of taxable state or local governmental bonds (excluding private activity bonds under section 141) as defined in section 54AA(g), the issuer of which elects to receive a refundable credit under section 6431 in lieu of tax credits to the holder of the bond.

Recovery zone economic development bond.

This is an issue of taxable state or local governmental bonds that meets the requirements under section 1400U-2 that may be used to finance certain qualified economic development purposes as defined under section 1400U-2(c), the issuer of which receives a refundable credit under section 6431.

Arbitrage rebate.

The issuer of a build America bond or recovery zone economic development bond must rebate to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(f).

Gross proceeds.

Gross proceeds means any proceeds and replacement proceeds of an issue as defined under Regulations section 1.148-1(b).

Sale proceeds.

Sale proceeds are determined under Regulations section 1.148-1(b) as any amount actually or constructively received from the sale of the issue, including amounts used to pay underwriters' discount or compensation and accrued interest, other than pre-issuance accrued interest. Sale proceeds also include, but are not limited to, amounts derived from the sale of a right that is associated with a bond, and that is described in Regulations section 1.148-4(b)(4). Sale proceeds shall also include the proceeds from the sale of credit strips. Also, see Regulations section 1.148-4(h)(5) treating amounts received upon the termination of certain hedges as sale proceeds.

Issue.

Generally, bonds are treated as part of the same issue if they are issued by the same issuer, on the same date, and in a single transaction, or a series of related transactions. Even if part of the same issue, build America bonds (Direct Pay), build America bonds (Tax Credit), and recovery zone economic development bonds must each be filed on a separate Form 8038-B.

Issue price.

The issue price of obligations is generally determined under Regulations section 1.148-1(f). Thus, when issued for cash, the issue price is the price at which a substantial amount of the obligations are sold to the public. To determine the issue price of an obligation issued for property, see sections 1273 and 1274 and the related regulations.

Amended return.

An issuer may file an amended return to change or add to the information reported on a previously filed return for the same date of issue. If you are filing to correct errors or change a previously filed return, check the "Amended Return" box in the heading of the form.

The amended return must provide all the information reported on the original return, in addition to the new or corrected information. Attach an explanation of the reason for the amended return and write across the top, "Amended Return Explanation." Failure to attach an explanation may result in a delay in processing this form.

Line 1.

The issuer's name is the name of the entity issuing the bonds, not the name of the entity receiving the benefit of the financing. For a lease or installment sale, the issuer is the lessee or the purchaser.

Line 2.

An issuer that does not have an employer identification number (EIN) should apply online by visiting the IRS website at IRS.gov/EIN. The organization may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. Customers outside the United States or U.S. possessions may also apply for an EIN by calling 267-941-1099 (toll call).

Line 3.

If the issuer wishes to authorize a person other than an officer of the issuer (including a legal representative or paid preparer) to communicate with the IRS and whom the IRS may contact with respect to this return (including in writing or by telephone), enter the name of that person here. The person listed in line 3 must be an individual. Do not enter the name and title of an officer of the issuer here (use line 10 for that purpose).

Line 4.

This line is for IRS use only. Do not make any entries in this box.

Lines 5 and 6.

If you listed in line 3 a person other than an officer of the issuer (including a legal representative or paid preparer) to communicate with the IRS and whom the IRS may contact with respect to this return, enter the number and street (or P.O. box if mail is not delivered to street address), city, town, or post office, state, and ZIP code of that person. Otherwise, enter the issuer's number and street (or P.O. box if mail is not delivered to street address), city, town, or post office, state, and ZIP code.

Line 7.

The date of issue is generally the date on which the issuer exchanges the bonds for the underwriter's (or other purchaser's) funds. For a lease or installment sale, enter the date interest starts to accrue in an MM/DD/YYYY format.

Line 8.

If there is no name of the issue, please provide other identification of the issue.

Line 9.

Enter the Committee on Uniform Securities Identification Procedures (CUSIP) number of the latest maturity on line 9. Attach a schedule with a complete list of CUSIP numbers for each bond. If some or all of the tax credits are stripped, attach a schedule with the name of each purchaser of the tax credit bonds or tax credit strips, each purchaser's EIN, and the CUSIP numbers associated with the bonds and the stripped tax credits. If the issue does not have a CUSIP number, write, "None." If the issue either has no CUSIP number or is privately placed, attach a schedule with each purchaser's EIN, name, and address.

Line 10.

Enter the name and title of the officer of the issuer whom the IRS may call for more information. If the issuer designates a person in line 3 (such as a legal representative or paid preparer) with whom the IRS may communicate with respect to this return, leave line 10 blank.

Line 11.

Enter the telephone number of the person whom the IRS may contact for more information identified in line 3 or line 10, as applicable.

Line 1.

You must identify the type of bonds issued by checking the corresponding box. If box 1b or 1c is checked, complete lines 2 and 3.

Line 2.

Enter the first interest payment date. An interest payment date is the date on which interest is payable by the governmental issuer to the holders of the bonds. (For variable rate issues, enter the last interest payment date applicable to the quarterly period for which the first Form 8038-CP for the issue will relate.) Enter the date in an MM/DD/YYYY format.

Line 3.

Check the box indicating the interest payment date frequency. In addition, issuers of build America bonds (Direct Pay) and recovery zone economic development bonds must attach a debt service schedule to the Form 8038-B which contains the information described below for the bond issue.

Line 1.

For build America bonds, identify the purpose of issue and enter the portion of the issue price allocable to each type of project expenditure. The portion of the issue price allocated to each type of project expenditure should include a pro rata allocation of proceeds representing such items as costs of issuance or a reasonably required reserve. For example, if 60% of the principal amount of the bond issue is for education purposes and 40% of the principal amount of the bond issue is for public safety purposes, the proceeds used for items such as costs of issuance or a reasonably required reserve should be allocated 60% to education and 40% to public safety. Line 1h is to be used solely to identify the portion of the issue price allocated to a purpose other than those listed in lines 1a through 1g. Lines 1a through 1h must equal the total issue price in line 3.

Attach a schedule listing names and EINs of organizations that are to use proceeds of these obligations if different from those of the issuer. Also indicate whether each organization listed on the statement is a government or private entity. Failure to attach the schedule may result in a delay in processing the return.

Line 2.

For recovery zone economic development bonds, identify the purpose of issue and enter the portion of the issue price allocable to each type of expenditure. The portion of the issue price allocated to each type of project expenditure should include a pro rata allocation of proceeds representing such items as costs of issuance or a reasonably required reserve. For example, if 60% of the principal amount of the bond issue is for capital expenditures purposes and 40% of the principal amount of the bond issue is for job training purposes, the proceeds used for items such as costs of issuance or a reasonably required reserve should be allocated 60% to capital expenditures and 40% to job training. Line 2d is to be used solely to identify the portion of the issue price allocated to a purpose other than those listed in lines 2a through 2c. Lines 2a through 2d must equal the total issue price in line 3.

Attach a schedule listing names and EINs of organizations that are to use proceeds of these obligations if different from those of the issuer. Also indicate whether each organization listed on the schedule is a government or private entity. Failure to attach the schedule may result in a delay in processing the return.

Line 3.

See Issue price under Definitions, earlier. For build America bonds, the amounts under lines 1a through 1h, or for recovery zone economic development bonds, the amounts under lines 2a through 2d must total the issue price of the entire issue entered in line 3.

Line 4.

If obligations are Tax Anticipation Notes (TANs) or Revenue Anticipation Notes (RANs), check box 4a. If obligations are Bond Anticipation Notes (BANs), check box 4b. Do not check both boxes.

Line 5.

Check this box if property other than cash is exchanged for the obligation, for example, acquiring a police car, a fire truck, or telephone equipment through a series of monthly payments. (This type of obligation is sometimes referred to as a "municipal lease.") Also check this box if real property is directly acquired in exchange for an obligation to make periodic payments of interest and principal. Do not check this box if the proceeds of the obligation are received in the form of cash, even if the term "lease" is used in the title of the issue.

Line 1.

The stated redemption price at maturity of the entire issue is the sum of the stated redemption prices at maturity of each bond issued as part of the issue. For a lease or installment sale, write "N/A."

Line 2.

Enter the last date on which any of the bonds will mature. Enter the date in an MM/DD/YYYY format.

Line 3.

The weighted average maturity is the sum of the products of the issue price of each maturity and the number of years to maturity (determined separately for each maturity and by taking into account mandatory redemptions), divided by the issue price of the entire issue (from Part III, line 3). For a lease or installment sale, enter the total number of years the lease or installment sale will be outstanding. Carry the year out to two decimal places, and do not round (for example, 10.72).

Line 4.

The yield is generally the discount rate that when used to figure the present value of all payments of principal and interest to be paid on the obligation produces an amount equal to the issue price, including accrued interest. See Regulations section 1.148-4 for specific rules to figure the yield on an issue. If the issue is a variable rate issue, leave blank. For other than variable rate issues, carry the yield out to four decimal places, and do not round (for example, 5.3125%). If reporting build America bonds (Direct Pay) or recovery zone economic development bonds, the yield is reduced by the amount of credit payments received under section 6431. If reporting build America bonds (Tax Credit) and the issue is a lease or installment sale, enter the effective rate of interest being paid.

Line 1.

See Sale proceeds under Definitions, earlier.

Line 2.

Estimate reasonably expected investment proceeds on the sales proceeds in line 1.

Line 3.

Enter the amount of pre-issuance interest accrued from the date the bonds are dated to the date of issue.

Line 4.

Enter the amount of the proceeds (including accrued interest) that will be used to pay bond issuance costs, including underwriter's fees, fees for trustees, and bond counsel.

Line 5.

Enter the amount of the proceeds that will be used to pay fees for credit enhancement that are taken into account in determining the yield on the issue for purposes of section 148(h), for example, bond insurance premiums and certain fees for letters of credit.

Line 6.

Enter the amount of the proceeds that will be allocated to a reasonably required reserve fund. See funding limitations for such a reserve under Regulations section 1.148-2(f).

Line 9.

Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds within 90 days of the date of issue.

Line 10.

Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds after 90 days of the date of issue, including proceeds that will be used to fund an escrow account for this purpose.

Lines 1 and 2.

The remaining weighted average maturity is determined without regard to the refunding. The weighted average maturity is determined in the same manner as for Part IV, line 3.

Line 3.

Enter the last date on which any of the bonds being refunded will be called. Enter the date in an MM/DD/YYYY format.

Line 4.

If more than a single issue of bonds will be refunded, enter the date of issue of each of the issues to be refunded on a schedule. Enter the date in an MM/DD/YYYY format. If the schedule is not attached, it may result in a delay in processing the return.

Line 1.

Enter the amount of volume cap allocated to the issue of recovery zone economic development bonds. Attach a copy of the certification of the volume cap allocation by the state, county, or large municipality. For build America bonds, enter the amount of state volume cap allocated to the issue under section 141(b)(5), if applicable. For recovery zone economic development bonds, attach a separate statement indicating the amount of state volume cap allocated to the issue under section 141(b)(5), if applicable. Also attach a copy of the certification of the recovery zone designation by the state, county, or large municipality. Failure to attach the required certifications will delay the processing of this return.

Line 2.

See Gross proceeds under Definitions, earlier. If any portion of the gross proceeds of the issue is or will be invested in a guaranteed investment contract (GIC), as defined in Regulations section 1.148-1(b), enter the amount of the gross proceeds invested, as well as the final maturity date of the GIC, and the name of the provider of such contract. Enter the final maturity date in an MM/DD/YYYY format on line 2b. Attach additional sheets, if necessary.

Line 3.

Enter the amount of proceeds of this issue used to fund a loan to another governmental unit.

Line 4.

If this issue is a loan of proceeds from another governmental issue, check box 4a and enter the date of issue in an MM/DD/YYYY format on line 4b. Enter the EIN on line 4c, and the name of the issuer of the master pool obligation on line 4d.

Line 5.

Check this box if the issuer has identified a hedge on its books and records in accordance with Regulations sections 1.148-4(h)(2)(viii) and 1.148-4(h)(5) that require an issuer of bonds to identify a hedge for it to be included in bond yield calculations for purposes of section 148. If the box on line 5a is checked, enter the name of the hedge provider on line 5b, the type of the hedge on line 5c, and the term of the hedge to the nearest tenth of a year (for example, 2.4 years) on line 5d. Attach additional sheets, if necessary.

Line 6.

In determining if the issuer has super-integrated a hedge, apply the rules of Regulations section 1.148-4(h)(4). If the hedge is super-integrated, check the box.

Line 7.

Check this box if the issue is a construction issue as defined in Regulations section 1.148-7(f) and an irrevocable election to pay a penalty in lieu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8038-T for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of arbitrage rebate with Form 8038-B. See Rev. Proc. 92-22, 1992-1 C.B. 736, for rules regarding the "election document."

Line 8.

An issue is an issue of private activity bonds if the issuer takes a deliberate action. Regulations section 1.141-2(d)(3) defines a deliberate action as any action taken by the issuer that is within its control, regardless of whether such act was intended to violate the private business use test or the private loan financing test. Regulations section 1.141-12 sets forth certain remedial actions that prevent a deliberate action with respect to property financed by an issue from causing that issue to meet the private business use test or the private loan financing test. Check the box if the issuer has established written procedures to ensure timely remedial action with respect to all nonqualified bonds in accordance with Regulations section 1.141-12 or other additional remedial actions authorized by the Commissioner under Regulations section 1.141-12(h).

Line 9.

Check the box if the issuer has established written procedures to ensure that the bonds comply with the arbitrage yield restriction and rebate requirements of section 148.

Line 1.

The IRS is considering publishing a list of tax credit bonds in order to assist in applicable reporting requirements. If the issuer of a build America bond (Tax Credit) consents to the IRS's publication, through a website or other publication, of its name and address, EIN, name and description of the bond issue, date of issuance, CUSIP number, issue price, final maturity date, and stated redemption price at maturity, to assist the IRS in the proper reporting of interest, tax credits, or other benefits under section 6049, and the regulations thereunder, check the box next to "Yes" on line 1 of Part VIII.