Sections 143 and 148 require bond issuers to pay a rebate to the United States if the proceeds of a bond issue are used for arbitrage and the issuer wishes the bonds to retain their exempt status. Section 148 also contains provisions for election and/or payment of various penalties associated with arbitrage bonds.
Form 8038-T is used by issuers of tax exempt bonds to report and pay the arbitrage rebate and to elect and/or pay various penalties associated with arbitrage bonds. These issuers include state and local governments.
US Code:
26 USC 148
Name of Law: Arbitrage
US Code:
26 USC 143
Name of Law: Mortgage revenue bonds: qualified mortgage bond and qualified veterans' mortgage bond
There is no change in form. However, we are updating the records to include the recordkeeping burden associated with regulation section 1.148-5(d)(6)(iii), previously approved under OMB number 1545-1490 and 1545-1098. This will result in an increase in the estimates number of responses per year of 1,400 and a estimated burden increase of 1,425 hours.
$15,766
No
No
No
No
No
No
Uncollected
Trene Cheek 202 283-2225
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form 8038-T Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate
Supporting Statement.docx
Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate