Printable Form 2026

IRS Instruction 8038-TC – IRS Forms, Instructions, Pubs 2026

IRS Instruction 8038-TC – IRS Forms, Instructions, Pubs 2026 – In the world of municipal finance and tax-exempt securities, understanding IRS reporting requirements is crucial for issuers dealing with legacy bond programs. Although the authority to issue new tax credit bonds was repealed by the Tax Cuts and Jobs Act (TCJA) after December 31, 2017, many existing issues still require compliance with filing obligations. This guide breaks down the IRS Instruction 8038-TC, providing step-by-step insights into Form 8038-TC, the Information Return for Tax Credit Bonds and Specified Tax Credit Bonds. Whether you’re an issuer navigating historical filings or seeking clarity on tax credit bond requirements, this article covers everything from purpose and eligibility to detailed filing instructions.

What is IRS Form 8038-TC?

IRS Form 8038-TC serves as an information return that issuers must submit to report details about qualified tax credit bonds and specified tax credit bonds. These bonds allow holders to claim federal income tax credits, and in some cases, issuers can elect refundable credits directly from the IRS. The form is required under Internal Revenue Code (IRC) section 149(e) to ensure transparency and compliance with federal tax laws.

Key types of bonds covered include:

  • Qualified forestry conservation bonds
  • New clean renewable energy bonds (New CREBs)
  • Qualified energy conservation bonds (QECBs)
  • Qualified zone academy bonds (QZABs)
  • Qualified school construction bonds (QSCBs)
  • Clean renewable energy bonds (CREBs)
  • Other qualified tax credit bonds (excluding Build America Bonds, which use Form 8038-B)

Specified tax credit bonds are a subset eligible for refundable credits under IRC section 6431(f), treating them as direct-pay bonds where issuers receive subsidies instead of investors claiming credits. However, the TCJA repealed new issuances of most tax credit bonds after 2017, making Form 8038-TC primarily historical for post-issuance compliance or amendments.

Who Must File Form 8038-TC?

Issuers of qualified tax credit bonds issued after March 2010 and before January 1, 2018, must file a separate Form 8038-TC for each issue. This includes governmental entities, public power providers, cooperatives, and other qualified issuers financing projects like renewable energy facilities, energy conservation initiatives, or school construction.

For specified tax credit bonds (e.g., New CREBs, QECBs, QZABs, QSCBs) issued before January 1, 2018, filing is mandatory if the issuer elects the refundable credit option under section 6431(f). Note that clean renewable energy bonds and qualified forestry conservation bonds are not eligible for this election.

Exemptions and notes:

  • Build America Bonds and Recovery Zone Economic Development Bonds use Form 8038-B instead.
  • Issuers must file even if bonds were stripped (separated into principal and credit components), providing details on purchasers.
  • If you’re amending a prior filing, check the “Amended Return” box and attach an explanation.

Key Filing Deadlines and Requirements for Form 8038-TC

Timely filing is essential to avoid penalties or delays in processing related forms like 8038-CP for refundable credits.

  • Deadline: File by the 15th day of the second calendar month after the close of the quarter in which the bond was issued (e.g., May 15 for a January issuance).
  • Specified Tax Credit Bonds: Submit at least 30 days before filing the first Form 8038-CP for interest payment refunds.
  • Late Filing Relief: If delayed, request an extension under Revenue Procedure 2002-48 by noting it on the form and attaching an explanation. Indicate if the issue is under IRS examination.
  • Where to File: Mail to Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201. Use IRS-designated private delivery services for proof of mailing.
  • Rounding Rules: Report amounts in whole dollars, rounding cents appropriately.
  • Attachments: Include schedules (A-D) for specific bond types, debt service schedules for specified bonds, and volume cap allocation certifications.

Failure to file can result in processing delays, but the IRS provides relief options for non-willful neglect.

Step-by-Step Guide: How to Fill Out Form 8038-TC

Completing Form 8038-TC requires accurate details as of the issue date. Here’s a line-by-line breakdown based on the official instructions.

Part I: Reporting Authority

  • Line 1: Issuer’s name (not the financed entity’s).
  • Line 2: Employer Identification Number (EIN).
  • Line 3-6: Third-party contact authorization and address.
  • Line 7: Issue date.
  • Line 8: Issue name.
  • Line 9: CUSIP number (or “None” if unavailable).
  • Line 10-11: Issuer’s contact officer and phone.

For amendments, check the box and attach a detailed explanation.

Part II: Type of Issue

  • Line 1: Enter the 3-digit code (e.g., 102 for New CREBs, 105 for QSCBs).
  • Line 2: Describe if “Other.”
  • Line 3: Elect section 6431(f) for refundable credits (specified bonds only).
  • Line 4-5: First interest payment date and payment frequency.
  • Attach a debt service schedule for specified bonds.

Part III: Description of Obligations

  • Line 1: Issue price.
  • Line 2: Stated redemption at maturity.
  • Line 3: Final maturity date.
  • Line 4: Applicable credit rate (from TreasuryDirect.gov).
  • Line 5: Maximum term.
  • Line 6: Permitted sinking fund yield.
  • Line 7-8: Interest rate and variable rate details.

Part IV: Proceeds of Issue

  • Line 1: Sale proceeds.
  • Line 2: Issuance costs (capped at 2% for some bonds).
  • Line 3: Investment proceeds.
  • Line 4-7: Calculate and allocate project proceeds.

Part V: Description of Use of Proceeds for Qualified Purpose Expenditures

  • Lines 1-14: Allocate to qualified purposes (e.g., renewable energy projects, school facilities).
  • Line 15: Percentage used for qualified purposes.
  • Line 16-17: Reimbursement details for pre-issuance expenditures.

Part VI: Allocation of Bond Limitation Amount

  • Line 1: Volume cap allocation by type (national, state, etc.).
  • Line 2: State abbreviation.

Schedules A-D

  • Schedule A: For New CREBs (issuer and project details).
  • Schedule B: For QECBs (conservation purposes).
  • Schedule C: For QZABs (academy certifications).
  • Schedule D: For QSCBs (school construction use).

Sign the form with an authorized representative’s consent for IRS disclosures.

Key Definitions for Tax Credit Bonds and Specified Tax Credit Bonds

  • Tax Credit Bond: Obligation entitling holders to tax credits under sections 54, 54A, or 1400N(l).
  • Specified Tax Credit Bond: Eligible for issuer refundable credits (e.g., QECBs, QSCBs).
  • Issue Price: Initial offering price to the public.
  • Volume Cap: National or state limits on bond allocations.
  • Arbitrage: Rules under section 148 to prevent profit from bond proceeds investments.
  • Form 8038-CP: For claiming refundable credits on specified bonds.
  • Form 8038-T: Arbitrage rebate payments.
  • Form 8038-B: Build America Bonds.
  • Resources: Visit IRS.gov/Form8038TC for PDFs, prior revisions, and Notices like 2009-15 (credit rates) and 2010-35 (direct payments).

Recent Updates to IRS Instruction 8038-TC

The instructions were last revised in September 2018. No significant changes have occurred since the TCJA repeal, but issuers should check IRS.gov for any procedural updates. As of 2026, the form remains relevant for amendments or audits of pre-2018 issues.

Conclusion: Ensuring Compliance with IRS Form 8038-TC

Navigating IRS Form 8038-TC instructions is key for issuers managing tax credit bonds, even in a post-repeal era. By following these guidelines, you can meet filing requirements efficiently and avoid compliance pitfalls. For personalized advice, consult a tax professional or visit IRS.gov for the latest tools and forms. Stay informed to optimize your bond program’s tax benefits.