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8038-CP

 

Electronic Filing of 8038-CP forms.

The IRS now requires the Issurers of Qualifed Bonds to Electronicly file the Form 8038-CP.

Muni Services LLC is an authorized efile provider.

Please contact us for additional information.

Arbitrage Rebate Calculations

 

All tax-exempt debt is subject to arbitrage rebate and yield restriction.   This includes:

·        General Obligation Debt

·        Lease Revenue Debt

·        Certificates of Participation

·        Temporary Notes

·        Private Placements

Yield Reduction Calculations

IRS allows for the investment of project fund proceeds above the bond yield.  Excess earnings are subject to rebate and must be paid to IRS.

At the end of the 3rd bond year all proceeds remaining in the project fund must be yield restricted and are subject to the yield reduction rules.

If an issuer meets the small issue exception but does not spend the project proceeds within the 3-year period, that issue becomes subject to yield reduction requirements.