اختار اللغة

Form 990 Instructions for Schedule K

Instructions for Schedule K (Form 990), supplemental Information on Tax-Exempt Bonds

Rev. 2023

النماذج ذات الصلة

تفاصيل
تنسيق الملف PDF
مقاس 163.4 KB
تحميل
Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Schedule K  
(Form 990)  
Supplemental Information on Tax-Exempt Bonds  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
assumptions that are used to complete Schedule K (Form 990)  
when the information provided isn't fully supported by existing  
records.  
Future Developments  
Who Must File  
For the latest information about developments related to  
Schedule K (Form 990) and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/Form990.  
An organization that answered “Yes” on Form 990, Part IV,  
Checklist of Required Schedules, question 24a, must complete  
and attach Schedule K to Form 990. This means the  
organization reported an outstanding tax-exempt bond issue  
that:  
General Instructions  
Note. Terms in bold are defined in the Glossary of the  
Instructions for Form 990, Return of Organization Exempt From  
Income Tax.  
Had an outstanding principal amount in excess of $100,000  
as of the last day of the tax year, and  
Was issued after December 31, 2002.  
Up to four separate outstanding tax-exempt liabilities can be  
Purpose of Schedule  
reported on each Schedule K (Form 990). The schedule can be  
duplicated if needed to report more than four tax-exempt  
liabilities. If the organization isn't required to file Form 990 but  
chooses to do so, it must file a complete return and provide all of  
the information requested, including the required schedules.  
Schedule K (Form 990) is used by an organization that files Form  
990 to provide certain information on its outstanding liabilities  
associated with tax-exempt bond issues. Usually, a bond issue  
associated with an exempt organization will consist of qualified  
501(c)(3) bonds, but all types of tax-exempt bonds benefiting the  
organization must be reported. A qualified 501(c)(3) bond issue  
consists of bonds, the proceeds of which are used by a section  
501(c)(3) organization to further its charitable purpose.  
Period Covered  
The organization can complete this schedule for any tax-exempt  
liability using the same period as the Form 990 with which it is  
filed. Alternatively, the organization can use any other 12-month  
period or periods selected by the organization and that, used  
consistently for a tax-exempt liability for purposes of this  
schedule and computations, is in accordance with the  
requirements under sections 141 through 150. Under this  
alternative, the organization can use different 12-month periods  
for each tax-exempt liability reported. The alternative period(s)  
must be specifically described in Part VI.  
Generally, applicable requirements for qualified 501(c)(3) bonds  
under section 145 include the following.  
All property financed by the bond issue is to be owned by a  
section 501(c)(3) organization or a state or local  
governmental unit.  
At least 95% of the net proceeds of the bond issue are used  
by either a state or local governmental unit or a section  
501(c)(3) organization in activities that don't constitute  
unrelated trades or businesses (determined by applying  
section 513).  
Specific Instructions  
If the organization has one or more related organizations  
(for example, parent and subsidiary relationship), it must  
complete Schedule K (Form 990) consistent with the filing(s) of  
its related organization(s). The same liability shouldn't be  
reported by more than one of the related organizations. For  
example, if a parent organization issues a tax-exempt bond and  
loans or allocates that issue to a subsidiary organization, only  
one organization (either the parent or subsidiary) should report  
the liability on Form 990 and the Schedule K. Similarly, if a parent  
organization loans or allocates the proceeds of a tax-exempt  
bond issue to a group of subsidiary organizations, only one level  
(either the parent or the group of subsidiaries) should report the  
liability on Form 990 and the Schedule K. For this purpose, if the  
subsidiary organizations report the liability, each subsidiary  
should only report the amount it is loaned or allocated.  
Definitions  
Tax-exempt bond. This is an obligation issued by or on  
behalf of a governmental issuer for which the interest paid is  
excluded from the holder's gross income under section 103. For  
this purpose, a bond can be in any form of indebtedness under  
federal tax law, including a bond, note, loan, or lease-purchase  
agreement.  
Bond issue. This is an issue of two or more bonds that are  
sold at substantially the same time, sold pursuant to the same  
plan of financing, and payable from the same source of funds.  
See Regulations section 1.150-1(c).  
Defeasance escrow. This is an irrevocable escrow  
established in an amount that, together with investment  
earnings, is sufficient to pay all the principal of, and interest and  
call premium on, bonds from the date the escrow is established.  
See Regulations section 1.141-12(d)(6). A defeasance escrow  
can be established for several purposes, including the  
remediation of nonqualified bonds when the defeasance  
provides for redemption of bonds on the earliest call date.  
However, for purposes of completing this schedule, an escrow  
established with proceeds of a refunding issue to defease a  
prior issue is referred to as a refunding escrow.  
If the organization's bond liability relates to a pooled financing  
issue, the organization should report with respect to the amount  
of the issue that the organization is loaned or allocated.  
Use Part VI to provide additional information or comments  
relating to the information provided on this schedule. For  
example, use Part VI to provide additional information or  
comments about the reporting of liabilities by related  
organizations. In addition, use Part VI to describe certain  
Jul 25, 2023  
Cat. No. 20378D  
Governmental issuer. A state or local governmental unit  
that issues tax-exempt bonds.  
issue in Part I for each year the outstanding principal amount  
exceeds $100,000 as of the last day of the year, and must  
provide all Part I, Part II, Part III, and Part IV information for such  
refunding issue. If any outstanding bonds of the 2014 bond issue  
weren't legally defeased, the organization must also list the 2014  
bond issue in Part I, and must provide all Part I, Part II, Part III,  
and Part IV information for such bond issue.  
Gross proceeds. This generally means any sale proceeds,  
investment proceeds, transferred proceeds, and replacement  
proceeds of an issue. See Regulations sections 1.148-1(b),  
1.148-1(c), and 1.148-9(b).  
Pooled financing issue. This is a bond issue from which  
more than $5 million of proceeds will be used to make loans to  
two or more conduit borrowers.  
Part I. Bond Issues  
In Part I, provide the requested information for each outstanding  
Private business use. Private business use means use of  
the proceeds of an issue by the organization or another section  
501(c)(3) organization in an unrelated trade or business as  
defined by section 513. Private business use also generally  
includes any use by a nongovernmental person other than a  
section 501(c)(3) organization unless otherwise permitted  
through an exception or safe harbor provided under the  
regulations or a revenue procedure.  
tax-exempt bond issue (including a refunding issue) that:  
Had an outstanding principal amount in excess of $100,000  
as of the last day of the tax year (or other selected  
12-month period), and  
Was issued after December 31, 2002.  
For this purpose, bond issues that have been legally  
defeased in whole, and as a result are no longer treated as a  
liability of the organization, need not be listed in Part I and aren't  
subject to the generally applicable reporting requirements of  
Parts I, II, III, and IV.  
Proceeds. This generally means the sale proceeds of an  
issue (other than those sale proceeds used to retire bonds of the  
issue that aren't deposited in a reasonably required reserve or  
replacement fund). Proceeds also include any investment  
proceeds from investments that accrue during the project period  
(net of rebate amounts attributable to the project period). See  
Regulations section 1.141-1(b).  
Note. Continued compliance with federal tax law requirements  
is required with respect to defeased bonds.  
Refunding escrow. This is one or more funds established as  
part of a single transaction or a series of related transactions,  
containing proceeds of a refunding issue and any other  
amounts to provide for payment of principal or interest on one or  
more prior issues. See Regulations section 1.148-1(b).  
Refunding issue. This is an issue of obligations the  
proceeds of which are used to pay principal, interest, or  
redemption price on another issue (a prior issue), including the  
issuance costs, accrued interest, capitalized interest on the  
refunding issue, a reserve or replacement fund, or similar  
costs, if any, properly allocable to that refunding issue. A current  
refunding issue is a refunding issue that is issued not more than  
90 days before the last expenditure of any proceeds of the  
refunding issue for the payment of principal or interest on the  
prior issue. An advance refunding issue is a refunding issue that  
isn't a current refunding issue. See Regulations sections  
1.150-1(d)(1), (3), and (4).  
Use one row for each issue, and use the Part I row  
designation for a particular issue (for example, “A” or “B”)  
consistently throughout Parts I through IV. The information  
provided in columns (a) through (d) should be consistent with the  
corresponding information included on Form 8038, Information  
Return for Tax-Exempt Private Activity Bond Issues, filed by the  
governmental issuer upon the issuance of the bond issue.  
Complete multiple schedules if necessary to account for all  
outstanding post-December 31, 2002, tax-exempt bond issues.  
In this case, describe in the first Schedule K, Part VI, that  
additional schedules are included.  
Columns (a) and (b). Enter the name and employer  
identification number (EIN) of the issuer of the bond issue. The  
issuer's name is the name of the entity that issued the bond  
issue (typically, a state or local governmental unit). The  
issuer's name and EIN should be identical to the name and EIN  
listed on Form 8038, Part I, lines 1 and 2, filed for the bond issue.  
Special rules for refunding of pre-2003 issues. Bonds  
issued after December 31, 2002, to refund bonds issued before  
January 1, 2003, have special reporting requirements. Such  
refunding bonds are subject to the generally applicable reporting  
requirements of Parts I, II, and IV. However, the organization  
need not complete lines 1 through 9 of Part III to report private  
business use information for the issue for such refunding bonds.  
These special rules don't apply to bonds issued after December  
31, 2002, to refund directly or through a series of refunding  
bonds that were also originally issued after 2002.  
Example 1. Refunding of pre-2003 bonds. Bonds issued  
in 2002 to construct a facility were current refunded in 2017. In  
2020, bonds were issued to current refund the 2017 bonds. As of  
December 31, 2023, the last day of the organization's tax year,  
the 2020 refunding bonds had an outstanding principal amount  
exceeding $100,000. The organization must list the refunding  
bond issue in Part I for each year the outstanding principal  
amount exceeds $100,000 as of the last day of such year, and  
must provide all Part I, Part II, and Part IV information for such  
refunding issue. Because the original bonds were issued prior  
to 2003, the organization need not complete Part III for the  
refunding bond issue.  
Column (c). Enter the Committee on Uniform Securities  
Identification Procedures (CUSIP) number on the bond with the  
latest maturity. The CUSIP number should be identical to the  
CUSIP number listed on Form 8038, Part I, line 9, filed for the  
bond issue. If the bond issue wasn't publicly offered and there  
is no assigned CUSIP number, enter zeros in place of the CUSIP  
number.  
Column (d). Enter the issue date of the obligation. The issue  
date should be identical to the issue date listed on Form 8038,  
Part I, line 7, filed for the bond issue. The issue date is generally  
the date on which the issuer receives the purchase price in  
exchange for delivery of the evidence of indebtedness (for  
example, a bond). In no event is the issue date earlier than the  
first day on which interest begins to accrue on the bond for  
federal income tax purposes. See Regulations section  
1.150-1(b).  
Column (e). Enter the issue price of the obligation. The issue  
price should generally be identical to the issue price listed on  
Form 8038, Part III, line 21(b), filed for the bond issue. The  
issue price is generally determined under Regulations sections  
1.148-1(b) and 1.148-1(f). If the issue price isn't identical to the  
issue price listed on the filed Form 8038, use Part VI to explain  
the difference.  
Example 2. Refunding of post-2002 bonds. Bonds  
issued in 2014 were advance refunded in 2017. As of December  
31, 2023, the last day of the organization's tax year, the  
refunding issue had an outstanding principal amount  
exceeding $100,000. The organization must list the refunding  
Column (f). Describe the purpose of the bond issue, such as  
to construct a hospital or provide funds to refund a prior issue. If  
any of the bond proceeds were used to refund a prior issue,  
-2-  
2023 Instructions for Schedule K (Form 990)  
enter the date of issue for each of the refunded issues. If the  
issue has multiple purposes, enter each purpose. If the issue  
financed various projects or activities corresponding to a related  
purpose, only enter the purpose once. For example, if proceeds  
are used to acquire various items of office equipment, the  
amount of such expenditures should be aggregated and  
identified with the stated purpose of “office equipment.”  
Alternatively, if proceeds are used to construct and equip a  
single facility, the expenditures should be aggregated and  
identified with the stated purpose of “construct & equip facility”  
where the identification of the facility is distinguishable from  
other bond-financed facilities, if any. Use Part VI if additional  
space is needed for this purpose.  
Line 6. Enter the amount of proceeds held in a refunding  
escrow as of the end of the 12-month period. For this purpose  
only, include investment proceeds without regard to the project  
period limitation found in the definition of proceeds.  
Line 7. Enter the cumulative amount of proceeds used to pay  
bond issuance costs, including (but not limited to) underwriters'  
spread as well as fees for trustees and bond counsel as of the  
end of the 12-month period. Issuance costs are costs incurred in  
connection with, and allocable to, the issuance of a bond issue.  
See Regulations section 1.150-1(b) for an example list of  
issuance costs.  
Line 8. Enter the cumulative amount of proceeds used to pay  
fees for credit enhancement that are taken into account in  
determining the yield on the issue for purposes of section 148(h)  
(for example, bond insurance premiums and certain fees for  
letters of credit) as of the end of the 12-month period.  
Column (g). Check “Yes” or “No” to indicate whether a  
defeasance escrow or refunding escrow has been  
established to irrevocably defease any bonds of the bond issue.  
Column (h). Check “Yes” if the organization acted as an “on  
behalf of issuer” in issuing the bond issue. Check “No” if the  
organization only acted as the borrower of the bond proceeds  
under the terms of a conduit loan with the governmental issuer  
of the bond issue.  
Line 9. Enter the cumulative amount of proceeds used to  
finance working capital expenditures as of the end of the  
12-month period. However, don't report expenditures reported in  
lines 4, 6, 7, and 8. A working capital expenditure is any cost that  
isn't a capital expenditure (for example, current operating  
expenses). See Regulations section 1.150-1(b).  
An “on behalf of issuer” is a corporation organized under the  
general nonprofit corporation law of a state whose obligations  
are considered obligations of a state or local governmental  
unit. See Rev. Proc. 82-26, 1982-1 C.B. 476, for a description of  
the circumstances under which the IRS will ordinarily issue a  
letter ruling that the obligations of a nonprofit corporation will be  
issued on behalf of a state or local governmental unit. See also  
Rev. Rul. 63-20, 1963-1 C.B. 24; Rev. Rul. 59-41, 1959-1 C.B.  
13; and Rev. Rul. 54-296, 1954-2 C.B. 59. An “on behalf of  
issuer” also includes a constituted authority organized by a state  
or local governmental unit and empowered to issue debt  
obligations in order to further public purposes. See Rev. Rul.  
57-187, 1957-1 C.B. 65.  
Line 10. Enter the cumulative amount of proceeds used to  
finance capital expenditures as of the end of the 12-month  
period. Capital expenditures generally include costs incurred to  
acquire, construct, or improve land, buildings, and equipment.  
See Regulations section 1.150-1(b). However, don't report  
capital expenditures financed by a prior issue that was refunded  
by the bond issue or capitalized interest that was reported on  
line 5.  
Line 11. Enter the cumulative amount of proceeds used for any  
item not reported on lines 4 through 10 as of the end of the  
12-month period. Include any proceeds used or irrevocably held  
to redeem or legally defease bonds of the issue.  
Column (i). Check “Yes” or “No” to indicate if the bond issue  
was a pooled financing issue.  
Line 12. Enter the amount of unspent proceeds as of the end of  
the 12-month period other than those amounts identified in lines  
4, 6, and 11.  
Part II. Proceeds  
Complete for each bond issue listed in rows A through D of Part  
I. Complete multiple schedules if necessary to account for all  
outstanding tax-exempt bond issues. Note that lines 3 and 5  
through 12 concern the amount of proceeds of the bond issue,  
but line 4 concerns the amount of gross proceeds of the bond  
issue. Because of this, the aggregate of the amounts entered on  
lines 4 through 12 may not equal the amount entered on line 3.  
Line 13. Enter the year in which construction, acquisition, or  
rehabilitation of the financed project was substantially  
completed. A project can be treated as substantially completed  
when, based upon all the facts and circumstances, the project  
has reached a degree of completion that would permit its  
operation at substantially its design level and it is, in fact, in  
operation at such level. See Regulations section 1.150-2(c). If  
the bond issue financed multiple projects, enter the latest year  
in which construction, acquisition, or rehabilitation of each of the  
financed projects was substantially completed. For example, if a  
bond issue financed the construction of three projects that were  
substantially completed in 2021, 2022, and 2023, respectively,  
then enter “2023.If the bond issue financed working capital  
expenditures, provide the latest year in which the proceeds of  
the issue were allocated to those expenditures.  
Line 1. Enter the cumulative principal amount of bonds of the  
issue that have been retired as of the end of the 12-month period  
used in completing this schedule.  
Line 2. Enter the cumulative principal amount of bonds of the  
issue that haven't been retired, but have been legally defeased  
through the establishment of a defeasance escrow or a  
refunding escrow, as of the end of the 12-month period.  
Line 3. Enter the total amount of proceeds of the bond issue  
as of the end of the 12-month period. If the total proceeds aren't  
identical to the issue price listed in Part I, column (e), use Part VI  
to explain the difference (for example, investment earnings).  
Line 14. Check “Yes” if the bonds were issued after 2017 to  
refund tax-exempt bonds or if the bonds were issued prior to  
2018 to currently refund tax-exempt bonds. Otherwise, check  
“No.”  
Line 4. Enter the amount of gross proceeds held in a  
reasonably required sinking fund, pledged fund, or reserve or  
replacement fund as of the end of the 12-month period. See  
Regulations sections 1.148-1(c)(2), 1.148-1(c)(3), and  
1.148-2(f).  
Line 15. Check “Yes” if the bonds were issued after 2017 to  
refund taxable bonds or if the bonds were issued prior to 2018 to  
advance refund tax-exempt bonds. Otherwise, check “No.”  
Line 16. Check “Yes” or “No” to indicate if the final allocation of  
proceeds has been made. Proceeds of a bond issue must be  
accounted for using any reasonable, consistently applied  
accounting method. Allocations must be made by certain  
applicable due dates and are generally not considered final until  
Line 5. Enter the cumulative amount of proceeds used, as of  
the end of the 12-month period, to pay interest on the applicable  
portion of the bond issue during construction of a financed  
capital project.  
-3-  
2023 Instructions for Schedule K (Form 990)  
the expiration of such due dates. See Regulations section  
1.148-6.  
has determined that the research agreement meets the safe  
harbor under Rev. Proc. 2007-47, 2007-29 I.R.B. 108, available  
at Rev. Proc. 2007-47, and won’t result in actual private  
business use. An agreement by a nongovernmental person to  
sponsor research performed by the organization can result in  
private business use of the property used for the research,  
based on all the facts and circumstances. A research agreement  
for the financed property will generally result in private business  
use of that property if the sponsor is treated as the lessee or  
owner of financed property for federal income tax purposes. See  
Regulations section 1.141-3(b)(6).  
Line 17. Check “Yes” or “No” to indicate if the organization  
maintains adequate books and records to support the final  
allocation of proceeds. Answer this question only with respect to  
the tax year applicable to this schedule.  
Part III. Private Business Use  
Complete for bond issues listed in rows A through D of Part I,  
other than listed bond issues that are post-December 31, 2002,  
refunding issues which refund pre-January 1, 2003, bond  
issues directly or through a series of refundings. For this  
purpose, a refunding bond issue also includes allocation and  
treatment of bonds of a multipurpose issue as a separate  
refunding issue under Regulations section 1.141-13(d).  
Complete multiple schedules if necessary to account for all  
outstanding tax-exempt bond issues.  
Line 3d. If line 3c was checked “Yes,check “Yes” or “No” to  
indicate if, during the 12-month period used to report on the  
bond issue, the organization routinely engaged bond counsel or  
other outside counsel to review any research agreements  
relating to the financed property.  
Line 4. Enter the average percentage during the year of the  
property financed by the bond issue that was used in a private  
business use by a nongovernmental person other than a  
section 501(c)(3) organization. See Regulations section  
1.141-3(g)(4). The average percentage is determined by  
comparing (i) the amount of private business use (see  
Definitions, earlier) during the year to (ii) the total amount of  
private business use and use that isn't private business use  
during that year. Don't include costs of issuance reported in Part  
II in the amount of property used in a private business use  
(clause (i) of the preceding sentence), but do include such costs  
in the total amount of use (clause (ii)). Enter the yearly average  
percentage to the nearest tenth of a percentage point (for  
example, 8.9% (0.089)). For this purpose, don't include any use  
relating to either a management or service contract identified on  
line 3a that the organization has determined meets the safe  
harbor under Rev. Proc. 2017-13, or otherwise doesn't result in  
private business use. See also Rev. Proc. 2016-44. Similarly,  
don't include any use relating to a research agreement identified  
on line 3c that the organization has determined meets the safe  
harbor under Rev. Proc. 2007-47, or otherwise doesn't result in  
private business use.  
The organization may omit from Part III information with  
respect to any bond issue reported in Part I that is a qualified  
private activity bond other than a qualified 501(c)(3) bond. For  
any other qualified private activity bonds, in Part VI the  
organization must identify the issue by reference to rows A  
through D of Part I, as applicable, and identify the type of  
qualified private activity bond.  
Line 1. Check “Yes” or “No” to indicate if the organization was at  
any time during the reporting period a partner in a partnership or  
a member of a limited liability company (LLC) which both owned  
property that was financed by the bond issue and included as  
partner(s) or member(s) entities other than a section 501(c)(3)  
organization.  
Line 2. Check “Yes” or “No” to indicate if any lease  
arrangements that may result in private business use were  
effective at any time during the year with respect to property  
financed by the bond issue. The lease of financed property to a  
nongovernmental person other than a section 501(c)(3)  
organization is generally private business use. Lease  
arrangements that constitute unrelated trade or business of the  
lessor, or that are for an unrelated trade or business of a section  
501(c)(3) organization lessee, may also result in private business  
use. See Regulations sections 1.141-3(b)(3) and 1.145-2(b)(1).  
Line 5. Enter the average percentage during the year of the  
property financed by the bond issue that was used in an  
unrelated trade or business activity (a private business use)  
by the organization, another section 501(c)(3) organization, or a  
state or local governmental unit. See Regulations section  
1.141-3(g)(4). Enter the yearly average percentage rounded to  
the nearest tenth of a percentage point (for example, 8.9%  
(0.089)).  
Line 3a. Check “Yes” or “No” to indicate if any management or  
service contract that may result in private business use was  
effective at any time during the year with respect to property  
financed by the bond issue. For this purpose, answer “Yes”  
even if the organization has determined that the management or  
service contract meets the safe harbor under Rev. Proc.  
2017-13, 2017-6 I.R.B. 787, available at Rev. Proc. 2017-13, and  
won’t result in actual private business use. A management or  
service contract for the financed property can result in private  
business use of the property, based on all facts and  
Line 7. Check “Yes” or “No” to indicate whether, as of the end of  
the 12-month period used to report on the bond issue, the bond  
issue met the private security or payment test of section 141(b)  
(2), as modified by section 145, to apply to qualified 501(c)(3)  
bonds. Generally, a qualified 501(c)(3) bond issue will meet the  
private security or payment test if more than 5% of the payment  
of principal or interest on the bond issue is either made or  
secured (directly or indirectly) by payments or property used or  
to be used for a private business use. See Regulations sections  
1.141-4 and 1.145-2.  
circumstances. A management or service contract for the  
financed property generally results in private business use of  
that property if the contract provides for compensation for  
services rendered with compensation based, in whole or in part,  
on a share of net profits from the operation of the facility. See  
Regulations section 1.141-3(b)(4). See also Rev. Proc. 2016-44,  
2016-36 I.R.B. 316, available at Rev. Proc. 2016-44.  
Line 8a. Check "Yes" or "No" to indicate whether the owner of  
any of the financed property sold or transferred the property to  
an entity other than a state or local governmental unit or another  
section 501(c)(3) organization. For this purpose, report sales  
and transfers on a cumulative basis since the issuance of the  
bonds.  
Line 3b. If line 3a was checked “Yes,check “Yes” or “No” to  
indicate if, during the 12-month period used to report on the  
bond issue, the organization routinely engaged bond counsel or  
other outside counsel to review any management or service  
contracts relating to the financed property.  
Line 8b. If line 8a was checked "Yes," report the percentage of  
property sold or transferred, including prior transfers on a  
cumulative basis, since the issuance of the bonds.  
Line 3c. Check “Yes” or “No” to indicate if any research  
agreement that may result in private business use was effective  
at any time during the year for property financed by the bond  
issue. For this purpose, answer “Yes” even if the organization  
-4-  
2023 Instructions for Schedule K (Form 990)  
nonpurpose investment that has specifically negotiated  
withdrawal or reinvestment provisions and a specifically  
negotiated interest rate, including “negotiations” through  
requests for bids. It also includes any agreement to supply  
investments on two or more dates (for example, a forward supply  
contract). If the answer on line 5a is “Yes”:  
Line 8c. If line 8a was checked "Yes," state whether the  
organization took any remedial actions under the applicable  
regulations with respect to any nonqualified bonds that may have  
resulted from the transfer.  
Line 9. Check "Yes" or "No" to indicate whether the organization  
has established written procedures to ensure timely remedial  
action with respect to all nonqualified bonds in accordance with  
Regulations sections 1.141-12 and 1.145-2 or other additional  
remedial actions authorized by the Commissioner under  
Regulations section 1.141-12(h). Answer "Yes" only if the  
procedures applied to the bond issue during the 12-month  
period used to report on the bond issue.  
Enter the name of the provider of the GIC on line 5b,  
Enter the term of the GIC rounded to the nearest tenth of a  
year on line 5c, and  
Enter “Yes” or “No” on line 5d to indicate if the regulatory  
safe harbor for establishing fair market value provided in  
Regulations section 1.148-5(d)(6)(iii) was satisfied.  
Line 6. Check “Yes” or “No” to indicate if any gross proceeds  
were invested beyond a temporary period (for example, the  
3-year temporary period applicable to proceeds spent on  
expenditures for capital projects, or the 13-month temporary  
period applicable to proceeds spent on working capital  
expenditures), or if any gross proceeds were invested in a  
reserve or replacement fund in an amount exceeding applicable  
limits. See Regulations sections 1.148-2(e) and (f).  
Part IV. Arbitrage  
Complete for each bond issue listed in rows A through D of Part  
I. Complete multiple schedules if necessary to account for all  
outstanding tax-exempt bond issues.  
Line 1. Under section 148(f), interest on a state or local bond  
isn't tax exempt unless the issuer of the bond rebates to the  
United States arbitrage profits earned from investing proceeds of  
the bond in higher yielding nonpurpose investments. Issuers of  
tax-exempt bonds and any other bonds subject to the provisions  
of section 148 must use Form 8038-T, Arbitrage Rebate, Yield  
Reduction and Penalty in Lieu of Arbitrage Rebate, to make  
arbitrage rebate and related payments. Generally, rebate  
payments are due no later than 60 days after every fifth  
Line 7. Check “Yes” or “No” to indicate if the organization has  
established written procedures to monitor compliance with the  
arbitrage, yield restriction, and rebate requirements of section  
148. Answer “Yes” only if the procedures applied to the bond  
issue during the 12-month period are used to report on the bond  
issue.  
anniversary of the issue date and the final payment of the bonds.  
Check “Yes” or “No” to indicate whether the issuer has filed the  
Form 8038-T that would have been most recently due.  
Part V. Procedures To Undertake  
Corrective Action  
Lines 2a through 2c. If the issuer hasn't filed Form 8038-T for  
the most recent computation date for which filing would be  
required if rebate were due, check “Yes” or “No” to indicate  
whether any of the explanations in lines 2a through 2c apply. If  
line 2c is checked “Yes,use Part VI to provide the date of the  
rebate computation showing that no rebate was due for the  
applicable computation date.  
Regulations section 1.141-12 and other available remedies for  
noncompliance may not cover all violations of the requirements  
of section 145 and other applicable requirements for tax-exempt  
bonds benefiting the organization. Certain remedial provisions  
also require that the noncompliance be identified and remedial  
action taken within a limited time after the deliberate action or  
other cause of the violation. In instances where applicable  
remedial provisions aren't available under the regulations, an  
issuer of bonds may request a voluntary closing agreement to  
address the violation under the Tax Exempt Bonds Voluntary  
Closing Agreement Program described under Notice 2008-31,  
2008-11 I.R.B. 592. Check “Yes” or “No” to indicate whether the  
organization has established written procedures to ensure timely  
identification of violations of federal tax requirements and timely  
correction of any identified violation(s) through use of the  
voluntary closing agreement program if self-remediation isn't  
available under applicable regulations. Answer “Yes” only if the  
procedures applied during the 12-month period are used to  
report on the bond issue.  
Line 3. Check “Yes” or “No” to indicate if the bond issue is a  
variable rate issue. A variable rate issue is an issue containing a  
bond with a yield not fixed and determinable on the issue date.  
Lines 4a through 4e. In general, payments made or received  
by a governmental issuer or borrower of bond proceeds under  
a qualified hedge are taken into account to determine the yield  
on the bond issue. A qualified hedge can be entered into  
before, at the same time as, or after the date of issue. Check  
Yes” or “No” on line 4a to indicate if the organization or the  
governmental issuer has entered into a qualified hedge and  
identified it on the governmental issuer's books and records. See  
Regulations section 1.148-4(h). If the answer to line 4a is “Yes”:  
Part VI. Supplemental Information  
Enter the name of the provider of the hedge on line 4b;  
Enter the term of the hedge rounded to the nearest tenth of  
a year (for example, 2.4 years) on line 4c;  
Use Part VI to provide the narrative explanations required, if  
applicable, to supplement Part I, columns (e) and (f); to provide  
additional information or comments relating to the reporting of  
liabilities by related organizations; and to describe certain  
assumptions that are used to complete Schedule K (Form 990)  
when the information provided isn't fully supported by existing  
records. Also use Part VI to supplement responses to questions  
on Schedule K (Form 990). Identify the specific part and line  
number that the response supports, in the order in which the  
responses appear on Schedule K (Form 990).  
Enter “Yes” or “No” on line 4d to indicate if, as a result of the  
hedge, variable yield bonds will be treated as fixed yield  
bonds (superintegration of the hedge) (see Regulations  
section 1.148-4(h)(4)); and  
Enter “Yes” or “No” on line 4e to indicate if the hedge was  
terminated prior to its scheduled termination date.  
Lines 5a through 5d. Check “Yes” or “No” on line 5a to indicate  
if any gross proceeds of the bond issue were invested in a  
guaranteed investment contract (GIC). A GIC includes any  
-5-  
2023 Instructions for Schedule K (Form 990)