Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate
Under Internal Revenue Code section 148(f), interest on a state or local bond is not tax-exempt unless the issuer of the bond rebates to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. Issuers of tax-exempt bonds and any other bonds subject to the provisions of Internal Revenue Code section 148 must use this form to make arbitrage rebate and related payments.
Other Items You May Find Useful:
Publication 3755, Tax Exempt Bonds- Filing Requirements
Publication 4077, Tax-Exempt Bonds for 501(c)(3) Charitable Organizations
Publication 4079, Tax-Exempt Governmental Bonds Compliance Guide
Form 8038-R, Request for Recovery of Overpayments Under Arbitrage Rebate Provisions
Comment on Form 8038-T
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