Printable Form 2026

IRS Form 8038-B – Information Return for Build America Bonds and Recovery Zone Economic Development Bonds

IRS Form 8038-B – In the realm of tax-exempt and taxable governmental bonds, IRS Form 8038-B plays a pivotal role for specific types of issuances. Although the authority to issue the bonds it covers has expired, understanding this form remains essential for financial professionals, issuers, and researchers reviewing historical bond data or compliance. This article delves into the details of IRS Form 8038-B, including its purpose, structure, filing requirements, and related bonds like Build America Bonds (BABs) and Recovery Zone Economic Development Bonds (RZEDBs). We’ll draw from official IRS sources to ensure accuracy and relevance.

What Is IRS Form 8038-B?

IRS Form 8038-B, titled “Information Return for Build America Bonds and Recovery Zone Economic Development Bonds,” is an information reporting document used by issuers of certain taxable governmental bonds. It was designed to fulfill the requirements under Internal Revenue Code (IRC) section 149(e), which mandates reporting for bonds that provide tax credits or direct payments in lieu of tax-exempt interest.

Introduced as part of the American Recovery and Reinvestment Act of 2009 (ARRA), the form supported economic stimulus efforts by facilitating bonds that helped fund infrastructure and development projects. However, it’s now considered historical because the Tax Cuts and Jobs Act of 2017 repealed the authority for tax-credit and direct-pay bonds, and the ability to issue BABs and RZEDBs specifically expired on January 1, 2011. No new issuances are possible, but the form’s records remain relevant for audits, historical analysis, or understanding past fiscal policies.

History and Background of Build America Bonds and Recovery Zone Economic Development Bonds

Build America Bonds (BABs) were created under ARRA to provide an alternative to traditional tax-exempt bonds during the financial crisis. They are taxable bonds where issuers could elect either a tax credit for bondholders (under section 54AA(a)) or a direct payment refundable credit from the IRS (under sections 54AA(g) and 6431). This structure allowed issuers to access a broader investor base, including those not benefiting from tax-exempt interest, while subsidizing borrowing costs.

Recovery Zone Economic Development Bonds (RZEDBs), also under ARRA (section 1400U-2), were a subset aimed at economically distressed areas designated as recovery zones. These bonds financed qualified economic development purposes, such as capital expenditures, public infrastructure, job training, and educational programs, with issuers receiving a direct payment credit.

Both bond types excluded private activity bonds under section 141 and were limited to issuances before 2011. As of 2026, no updates have revived these programs, and related forms like 8038-CP (for credit payments) have seen procedural changes, but Form 8038-B itself remains unchanged in its historical context.

Purpose of IRS Form 8038-B

The primary purpose of Form 8038-B is to provide the IRS with detailed information about the bond issuance to monitor compliance with tax laws and ensure proper allocation of federal subsidies. It helps track the use of proceeds, issue prices, maturity details, and other metrics to prevent abuse of the tax credit or direct payment mechanisms.

For BABs (Direct Pay) and RZEDBs, filing was required at least 30 days before submitting the first Form 8038-CP for interest payment claims. The form also facilitated public disclosure options, allowing issuers to consent to sharing certain bond details under section 6049.

Who Must File Form 8038-B?

Governmental issuers (states or local governments) of BABs or RZEDBs were required to file a separate Form 8038-B for each issue. This included issuances with fixed rates, variable rates, or a combination, but different bond types (e.g., Tax Credit vs. Direct Pay) needed separate forms. Private activity bonds were excluded, and tax-exempt portions of mixed issuances were reported on other forms like 8038-G.

Since the programs ended in 2011, no new filings are required. However, amended returns could still be filed to correct historical errors by checking the “Amended Return” box and attaching an explanation.

Filing Requirements and Deadlines

Historically, Form 8038-B had to be filed on or before the 15th day of the second calendar month after the close of the calendar quarter in which the bonds were issued. For example:

  • Bonds issued in Q1 (January–March) were due by May 15.
  • Q2 (April–June) due by August 15.
  • Q3 (July–September) due by November 15.
  • Q4 (October–December) due by February 15 of the following year.

The form could not be filed before the issue date and had to reflect facts as of that date. Late filings might qualify for relief under Revenue Procedure 2002-48, requiring a written request explaining the delay.

Filings were mailed to the IRS Ogden Service Center or via private delivery services. As of 2026, while electronic filing is mandatory for related forms like 8038-CP (for filers with 10+ returns), Form 8038-B remains paper-based in its historical use. Penalties for non-filing weren’t explicitly detailed in core instructions but could arise under general IRC provisions for failure to file information returns.

Key Sections of IRS Form 8038-B

The form is divided into several parts, requiring detailed information in whole dollars where applicable. Here’s a breakdown based on the official structure:

Part I: Reporting Authority

Includes issuer’s name, EIN, address, issue date, name of issue, CUSIP number, and contact details.

Part II: Type of Bonds

Specify the bond type (Tax Credit BABs, Direct Pay BABs, or RZEDBs) and interest payment details like first payment date and frequency.

Part III: Purpose of Issue

Detail the purpose (e.g., education, health, transportation for BABs; capital expenditures, infrastructure for RZEDBs) and total issue price.

Part IV: Description of Obligations

Cover redemption price at maturity, final maturity date, weighted average maturity, yield, and whether it’s a variable rate issue.

Part V: Use of Proceeds of Issue

Break down proceeds for sales, investments, issuance costs, reserves, capital/working capital expenditures, and refunds.

Part VI: Description of Refunded Bonds

For refunding issues, provide maturity details and call dates.

Part VII: Miscellaneous

Includes volume cap allocations, guaranteed investment contracts, hedges, arbitrage elections, and compliance procedures.

Option to allow public disclosure of bond details.

Attachments like debt service schedules and volume cap certifications were often required.

Frequently Asked Questions About IRS Form 8038-B

Is Form 8038-B Still Required in 2026?

No, as bond issuances ended in 2011. However, amendments for historical corrections may be filed.

What Happens If a Filing Was Late?

Relief could be sought under Rev. Proc. 2002-48, explaining the non-willful neglect.

How Do BABs Differ From Traditional Tax-Exempt Bonds?

BABs are taxable but subsidized via credits or payments, broadening investor appeal.

Where Can I Find More Updates?

Visit IRS.gov for the latest on tax-exempt bonds, though no changes to Form 8038-B are noted as of 2026.

Conclusion

IRS Form 8038-B served as a critical tool for reporting on innovative bond programs that spurred economic recovery post-2008. While no longer active, its framework offers valuable insights into federal bond incentives and compliance. For any historical or related inquiries, consult official IRS resources to stay informed. If you’re dealing with current bond issuances, explore forms like 8038-G for governmental bonds.