Form 8038-B: Understanding Build America Bonds & Recovery Zone Economic Development Bonds
Form 8038-B is an essential information return used for reporting Build America Bonds (BABs) and Recovery Zone Economic Development Bonds (RZEDBs). These bonds were introduced as part of the American Recovery and Reinvestment Act of 2009 to stimulate the economy through financing public infrastructure projects.
Key Features:
- Identification of issuer and bonds
- Bond amount and issue price
- Interest rates and payment terms
- Proceeds allocation and project description
- Certifications and signatures
Filing Requirements:
Entities issuing BABs or RZEDBs are required to file Form 8038-B with the IRS to report bond issuance and compliance with tax-exempt bond regulations. The form must be submitted annually, typically by the 15th day of the 7th month after the close of the issuer’s tax year.
Penalties for Non-Compliance:
Failure to file Form 8038-B or providing incorrect information may result in penalties, including fines and potential disqualification of the tax-exempt status of the bonds. Issuers must ensure accurate reporting to avoid repercussions.
Importance in Tax Resolution:
Form 8038-B plays a critical role in tax compliance and financial transparency for issuers of BABs and RZEDBs. Proper reporting ensures adherence to IRS regulations and facilitates proper allocation of funds for qualifying projects, supporting economic development initiatives.