The American Recovery and Reinvestment Act of 2009 created several new types of tax-exempt bonds and qualified tax credit bonds under the Internal Revenue Code. Among others, Build America Bonds (Direct Pay) are issued under section 54AA(g) of the Code. Build America Bonds (Tax Credit) are issued under section 54AA of the Code. Recovery Zone Economic Development Bonds are issued under section 1400U-2 of the Code.
The Tax Exempt Bonds function (TEB) of the IRS Tax Exempt and Government Entities division has released new Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, and its instructions. The new Form 8038-CP is to be used by issuers of Build America Bonds (Direct Pay) or Recovery Zone Economic Development Bonds to request credit payments under section 6431 of the Code. The new form allows an issuer, or its designee, the option to receive credit payments by direct deposit. New Form 8038-CP should be used for all future requests for credit payments.
TEB has also released new Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds, and its instructions. The new Form 8038-B is to be used by issuers to report the issuance of Build America Bonds (Direct Pay), Build America Bonds (Tax Credit) and Recovery Zone Economic Development Bonds as required under section 149(e) of the Code. Form 8038-B should be used to report all future issues of these bonds instead of Form 8038-G, Information Return for Tax-Exempt Governmental Obligations.
In order to assist issuers, TEB has released two sets of Questions and Answers. The first set, Frequently Asked Questions on Filing Requirements for Build America Bonds and Recovery Zone Economic Development Bonds" contains information on how to properly file new Form 8038-B and Form 8038-CP and on the processing of credit payments. The second set, Frequently Asked Questions on Build America Bonds and Recovery Zone Economic Development Bonds contains general information regarding Build America Bonds (Direct Pay), Build America Bonds (Tax Credit) and Recovery Zone Economic Development Bonds.
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