IRS Form 8038-GC: What It Is and How to File

IRS Form 8038-GC is an information return for issuers of tax-exempt governmental bonds. Under Internal Revenue Code section 149(e), its function is to provide the IRS with required data about these financial instruments. The form simplifies reporting by allowing governmental entities to submit a single, consolidated return for multiple small bond issues from a calendar year. The information collected allows for oversight of how proceeds are used and confirms the bonds’ tax-exempt status is warranted.

Who Must File Form 8038-GC

Filing Form 8038-GC is required for issuers of tax-exempt governmental obligations. The defining characteristic for using this form is the size of the bond issue. An issuer must use Form 8038-GC for bond issues where the issue price is less than $100,000. For any single governmental obligation with an issue price of $100,000 or more, the issuer is required to file Form 8038-G, Information Return for Tax-Exempt Governmental Bonds, instead.

The form accommodates two main filing scenarios. An issuer can file a consolidated return that aggregates all separate small issues from a single calendar year. Alternatively, an issuer has the option to file a separate Form 8038-GC for each individual small issue as it occurs throughout the year.

A specific exception to the consolidated filing option exists for construction issues. If a bond issue is designated as a construction issue and the issuer chooses to pay a penalty instead of an arbitrage rebate, a separate Form 8038-GC must be filed for that specific issue. All other small issues not related to such an election can still be reported on a single consolidated form.

Information Required to Complete the Form

Before filling out the form, specific information must be gathered. The form is divided into parts, each requiring distinct details about the issuer and the obligations. Proper preparation ensures an accurate and complete filing.

Part I of the form pertains to the Reporting Authority, which is the governmental issuer. You will need to provide the issuer’s legal name, full address, and Employer Identification Number (EIN). This section also requires the name, title, and telephone number of an officer or other designated employee who the IRS can contact with any questions about the information provided on the return.

Part II, Description of Obligations, is where the financial details of the bonds are reported. You must indicate whether you are filing for a single issue or a consolidated return. For each obligation included on the form, you must list its specific issue price and the date it was issued. The form requires a breakdown of how the bond proceeds were used, with specific lines for funds allocated to leases, bank loans, refunding prior issues, or other purposes.

The Filing Process

The filing deadline for a consolidated return is February 15 of the calendar year following the year the bonds were issued. For issuers who opt to file a separate return for a single issue, the deadline is the 15th day of the second calendar month after the close of the calendar quarter in which the bond was issued. The completed form must be mailed to the Department of the Treasury, Internal Revenue Service Center in Ogden, UT 84201. Verify this address in the form instructions before mailing. There is no fee required to file Form 8038-GC.

Since the IRS does not send a confirmation of receipt, it is advisable to use a mail service that provides proof of delivery for your records. In cases where a filing deadline is missed, it may be possible to request an extension by showing that the failure to file on time was not due to willful neglect.