990 forma útmutatás a K. menetrendhez
K. ütemterv (990. évi) kiegészítő információk az adómentes kötvényekről
Rev. 2023
Kapcsolódó űrlapok
- Form 990 Schedule K - Kiegészítő információk az adómentes kötvényekről
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
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,
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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.
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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
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.
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,
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
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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
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2023 Instructions for Schedule K (Form 990)