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Extended Relief Granted for Certain Tax-Exempt Bond Issuers Affected by Hurricane Sandy

In the aftermath of Hurricane Sandy, the Internal Revenue Service announced that certain government entity issuers of tax-exempt bonds affected by Hurricane Sandy may qualify for extended time to file certain returns related to tax-exempt bonds, qualified tax credit bonds, and specified tax credit bonds.  The IRS today is further extending that relief until April 1 in connection with the following localities:

  • In New Jersey (starting Oct. 26): Monmouth and Ocean counties;
  • In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.

Under this extended IRS relief, issuers located in the localities listed above that are required to file a Form 8038 series information return or a Form 8038-T in connection with an arbitrage payment, with a due date between late October and March 31, 2013, may file such returns and make such payments up until April 1, 2013.

Issuers may also file such returns and make such payments up until April 1, 2013, if the records necessary to make such filing or payment, the conduit borrower, or the bond counsel or other professional upon whom the issuer relies to make such filing or payment is located in the localities listed above.

The IRS will abate any late-filing penalty that would otherwise apply. The IRS automatically provides this extended relief to affected issuers in the localities listed above.  Issuers need not contact the IRS to get this extended relief.  However, affected issuers should clearly indicate on the top of the return that such late filing or payment is the result of devastation caused by Hurricane Sandy.

In addition, issuers that otherwise qualify for relief under this release and that are required to file a Form 8038 series information return or a Form 8038-T in connection with an arbitrage payment, due between late October and March 31, 2013, may request authority to file a Form 8038 series information return or Form 8038-T after April 1, 2013, by requesting an extension under Revenue Procedures 2002-48 and 2005-40, which provide guidance on how issuers may request extensions of time to file Form 8038 series information returns and waivers of penalty associated with a late arbitrage payment.  Affected issuers should request relief in accordance with these revenue procedures and clearly indicate that such late filing or payment was the result of devastation caused by Hurricane Sandy.

In addition, a Form 8038-CP authorized to be filed by an affected issuer between late October and March 31, 2013, but filed thereafter, will be immediately processed upon receipt.

See Extra Time Granted for Tax Exempt Bond Issuers Affected by Hurricane Sandy.

Page Last Reviewed or Updated: 26-Mar-2014