Electronic filing of Forms 8038-CP filed after December 31, 2023 becomes mandatory for most issuers that have a direct pay Build America Bond, Recovery Zone Economic Development Bond, Qualified School Construction Bond, Qualified Zone Academy Bond, or other specified tax credit bond outstanding. Beginning on the January 1, 2024 implementation date, the IRS will no longer accept paper filings of Form 8038-CP for an issuer that is required during the calendar year to file at least 10 federal tax returns of any type (including W-2, 1099, or any other federal tax returns).

Treasury Regulations titled “Electronic Filing Requirements for Specified Returns and Other Documents” (26 CFR Par. 23 Section 301.6011-11), published February 23, 2023, require all Forms 8038-CP filed after December 31, 2023 to be electronically filed through an authorized e-file provider. The IRS maintains a list of authorized Form 8038-CP e-file providers at https://www.irs.gov/charities-non-profits/tax-year-2023-other-tax-exempt-entities-modernized-e-file-mef-providers-form-8038-cp.

Any issuer with an outstanding Build America Bond, Recovery Zone Economic Development Bond, Qualified School Construction Bond, Qualified Zone Academy Bond, or other specified tax credit bond should take the steps required by the IRS at https://www.irs.gov/tax-exempt-bonds/recent-updates-to-form-8038-cp-and-processing-changes to avoid processing delays in receiving its upcoming interest subsidy payments.

Please contact your Gilmore & Bell lawyer if you have any questions.

Posted: Dec 11, 2023