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?

Pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments issued to and refund offset transactions for certain state and local government filers claiming refundable credits under section 6431 of the Internal Revenue Code applicable to certain qualified bonds are subject to sequestration.

This means that refund payments and refund offset transactions processed on or after October 1, 2020, and on or before September 30, 2030, will be reduced by the fiscal year 2021 5.7 percent sequestration rate, irrespective of when the IRS received the Form 8038-CP with amounts claimed by an issuer. The sequestration reduction rate will be applied unless and until a law is enacted that cancels or otherwise affects the sequester, at which time the sequestration reduction 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?