The Internal Revenue Service and the Treasury Department have requested public comments on Form 8038-CP, which is used for credit payments to issuers of qualified tax-credit bonds, such as Build America Bonds and recovery zone economic development bonds.
The form was created to carry out provisions of the American Recovery and Reinvestment Act of 2009. It provides state and local governments with the option of issuing a tax-credit bond instead of a tax-exempt governmental obligation bond.
The form 8038-CP also provides the option to receive a direct payment from the federal government equal to a subsidy that would have been received through the federal tax credit for bonds.
Changes were made to the form in March of this year to comply with the current regulations.
For specific tax-credit bonds with mutual bond maturities, the refundable credit is now determined separately for each maturity.
Due to the changes, the total estimated annual burden is expected to increase by 112,000 hours, the agencies said.
There is no change to the existing regulations. The agencies are only reviewing an extension of a currently approved continuing collection of information as required by the Paperwork Reduction Act of 1995.
Written comments should be received on or before Aug. 20 to be considered, the agencies said. All written comments should be directed to Yvette Lawrence at the IRS.
