IRS Form 8038-GC – If your state, local government, municipality, school district, or other governmental entity issues small tax-exempt obligations (bonds, leases, or installment sales) with an issue price under $100,000, IRS Form 8038-GC is the required information return. This form helps issuers comply with Internal Revenue Code (IRC) Section 149(e) while allowing the IRS to monitor adherence to Sections 141–150 for maintaining the tax-exempt status of the interest.
Download the official current form here: IRS Form 8038-GC PDF (Rev. October 2021) – still the latest revision as of February 2026, with no recent developments or changes.
What Is IRS Form 8038-GC?
Form 8038-GC, officially titled “Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales,” reports tax-exempt governmental obligations where interest is excludable from gross income under IRC Section 103. These are not private activity bonds.
It applies to:
- Bonds
- Financial leases
- Installment purchase agreements
Key threshold: Use Form 8038-GC only if the issue price is less than $100,000. Issues of $100,000 or more require Form 8038-G instead.
Purpose: Provides the IRS with essential details on the issuer, obligation amount, purpose, and any special elections (e.g., small issuer arbitrage exception or penalty in lieu of arbitrage rebate).
Who Must File Form 8038-GC?
The issuer (the governmental entity issuing the obligation) must file. Typical filers include:
- Cities, counties, towns, and municipalities
- School districts and special districts
- Qualified volunteer fire departments (under Section 150(e))
- State or local governmental units financing public projects via leases or installment sales
Exceptions:
- Private activity bonds → Use Form 8038
- Governmental obligations ≥ $100,000 → Use Form 8038-G
- Construction issues requiring a penalty election → Often filed separately (even if under $100k) to notify the IRS
Issuers may file one consolidated return for all qualifying small issues in a calendar year or separate returns for individual issues.
Form 8038-GC vs. Form 8038-G vs. Form 8038: Quick Comparison
| Form | Issue Price Threshold | Obligation Type | Filing Option |
|---|---|---|---|
| 8038-GC | < $100,000 | Small governmental bonds, leases, installment sales | Single or consolidated |
| 8038-G | $100,000 or more | Tax-exempt governmental obligations | Separate per issue |
| 8038 | Any | Private activity bonds | Separate per issue |
When to File IRS Form 8038-GC (Deadlines)?
Single-issue return
→ On or before the 15th day of the 2nd calendar month after the quarter in which the obligation is issued.
Example: Issued April 10 (Q2) → Due July 15.
Consolidated return (multiple issues in one year)
→ On or before February 15 of the year following the calendar year of issuance.
Cannot file before the issue date. Complete based on facts known at issuance (or year-end for consolidated returns).
Late filing relief: Request under Rev. Proc. 2002-48 by writing “Request for Relief under section 3 of Rev. Proc. 2002-48” at the top and attaching an explanation letter. Willful neglect disqualifies relief.
How to Complete Form 8038-GC: Step-by-Step Instructions?
- Download and review the latest PDF from IRS.gov.
- Part I – Reporting Authority
- Check “Amended Return” if correcting a prior filing (attach explanation).
- Lines 1–4: Issuer name, EIN, address.
- Lines 6–7: Contact person and phone number (IRS may call for clarification).
- Part II – Description of Obligations
- Check “Single issue” or “Consolidated return.”
- Line 8a: Total issue price.
- Line 8b: Issue date (MM/DD/YYYY) or calendar year (consolidated).
- Lines 9a–9k: Break down amounts by purpose (leases for vehicles, real property, bank loans, refunding issues, etc.).
- Line 10: Check if claiming small issuer exception under Section 265(b)(3)(B)(i)(III) (avoids arbitrage rebate for small issuers).
- Line 11: Check if electing penalty in lieu of arbitrage rebate (construction issues only – file separately).
- Lines 12–13: Vendor or bank name and EIN (if applicable).
- Signature: Authorized representative signs under penalties of perjury. Include consent for IRS disclosure to contacts.
- Paid Preparer section (if used).
Rounding: Use whole dollars (drop <50¢, round 50–99¢ up).
Amended returns: Check the box, provide all original + corrected info, and attach explanation.
Where to File Form 8038-GC?
Mail to:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201
Private delivery services (DHL, FedEx, UPS) accepted for timely filing proof. See IRS.gov/PDS for details.
Do not attach bond documents, leases, or indentures.
Related Forms and Next Steps
- Arbitrage rebate or penalty: File Form 8038-T.
- Larger issues: Switch to Form 8038-G.
- Compliance guide: Publication 4079 (Tax-Exempt Governmental Bonds Compliance Guide).
- Retain records to support the return.
FAQs About IRS Form 8038-GC
Can I file electronically?
No – paper filing only to Ogden.
What if I have both small and large issues in one year?
File consolidated 8038-GC for all < $100k issues; separate 8038-G for each ≥ $100k.
Do leases count as “bonds”?
Yes – financial leases and installment sales are treated as obligations for this purpose.
Is there a penalty for not filing?
Failure to file timely may trigger compliance reviews or loss of tax-exempt status; late relief is available if not willful.
Final Tips for Smooth Filing
- File early to avoid last-minute rushes.
- Double-check issue price calculations (critical for the $100k threshold).
- Use the small issuer exception or penalty election wisely to minimize arbitrage rebate obligations.
- Consult bond counsel for complex transactions involving draw-down loans or multi-year leases.
Staying compliant with Form 8038-GC protects the tax-exempt status of your financing and avoids costly IRS scrutiny. For the most current guidance, always visit IRS.gov/Form8038GC and download the official form directly.
Need help with a specific line or scenario? Comment below or consult your bond counsel or tax advisor. This guide is based exclusively on official IRS sources as of February 2026.