Understanding Your CP152A Notice


What this notice is about

We received your Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, and are providing you with 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.

Frequently Asked Questions

Will I receive a notice for each Form 8038-CP I filed?
Yes. We'll send a separate acknowledgement for each form.

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.

Need Help?