We received your Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds and provides an explanation for the reduced credit payment amount.
What you need to do
- You don’t need to do anything.
You may want to...
- Keep a copy of this notice for your records.
Will I receive a notice for each Form 8038-CP I filed?
- Yes. We'll send a separate acknowledgement for each form.
Answers to Common Questions
Why was my credit payment reduced?
In accordance with the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic reductions take place as of March 1, 2013.
As determined by the Office of Management and Budget, these required reductions include a reduction to refundable credits under section 6431 of the Internal Revenue Code applicable to certain qualified bonds. The sequester reduction is applied to section 6431 amounts claimed by an issuer on any Form 8038-CP filed with the Service which results in an obligation to such issuer on or after March 1, 2013.
As a result, the refundable portion of your claim will be reduced by 6.6% percent. The sequestration rate will be applied until the end of the fiscal year (September 30, 2018), or intervening Congressional action, at which time the sequestration rate is subject to change.
Can I appeal the decision to reduce my refund?
Reduction in the amount of your refund is required of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended and can't be appealed.
Tax publications you may find useful
- Publication 1, Your Rights as a Taxpayer (PDF)
- Form 8716, Election To Have a Tax Year Other Than a Required Tax Year (PDF)
- Form W-7A Application for Taxpayer Identification Number for Pending U.S. Adoptions (PDF)
- Form W-7 (SP) Solicitud de Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos (PDF)
- Full list of tax forms and instructions
How to get help
- Call the 800, 866 or 888 number listed on the top right corner of your notice.
- Authorize someone (such as an accountant) to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative (PDF)
- See if you qualify for help from a Low Income Taxpayer Clinic.