Tax Exempt Bonds Compliance Check Questionnaire on Direct Pay Bonds (February 2010)
In February 2010 the Tax Exempt Bonds office (TEB) of the Tax Exempt and Government Entities division of the IRS sent out a compliance check questionnaire to all entities that indicated on either their Form 8038-G, Information Return for Tax-Exempt Governmental Obligations, or their Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds that they issued direct pay build America bonds. This compliance project was conducted to evaluate the issuance, post-issuance, and record retention policies, procedures and practices of issuers of direct pay build America bonds issued under section 54AA(g) of the Internal Revenue Code. Issuers of direct pay build America bonds may receive a refundable credit payment equal to 35% of the interest payable on such bonds on each interest payment date.
TEB solicited suggestions to clarify any confusion regarding the wording and intent of these questions in order to assist issuers in their responses. In response to the suggestions received, TEB revised the questionnaire to ensure that the questions would be clearly interpreted and also to request expanded descriptions of the issuer’s compliance procedures and practices. TEB sent out the revised questionnaire in June 2010.
Revised Form 14127, Direct Pay Bonds Compliance Check Questionnaire
Prior Form 14127, Direct Pay Bonds Compliance Check Questionnaire
Letter 4575, Direct Pay Bonds Post-Issuance and Record Retention Practices