WASHINGTON — The Internal Revenue Service is asking issuers of Build America Bonds and tax-credit bonds to weigh in on how much of a burden it is to file two new information returns for the bonds that will be released later this week.
In two separate notices filed Friday, the service notified the public that it was seeking comments on its Forms 8038-B and 8038-TC, which municipal issuers will have to fill out to document their issuance of BABs and tax-credit bonds, respectively. Form 8038-B also will be used by issuers of recovery zone economic development bonds, a “super-BAB” that issuers can sell in certain distressed areas to finance projects.
Though the forms have not yet been released, the IRS is expected to unveil them this week, sources said.
When released, the forms will be an addition to other Form 8038s that municipal issuers already use to provide information to the IRS. Form 8038-G, which governmental issuers file for governmental bonds, asks for information about the issuer, the type of bonds being issued, and the use of the proceeds.
The IRS periodically requests public comment on the variety of forms it administers, primarily to determine exactly how much time and effort is required to properly fill them out.
Specifically, the agency wants to know whether the information it requests is relevant to administering the programs; how accurate are its estimates regarding the time needed to fill out the paperwork; how it could improve the forms or reduce the burden involved in filling them out; and how much it costs to adhere to the forms’ requirements.
The deadline for comments on both forms is April 5.