Alert: School district and City bonds may require a specific tax form

Here’s a heads-up for local school districts and cities with certain types of bonds that may need to use Form 8038-CP.

The IRS mandates electronic filing for Form 8038-CP — “Return for Credit Payments to Issuers of Qualified Bonds” — if the filer is required to file at least 10 returns of any type during the calendar year. W-2 forms do count in the total number of returns.

Form 8038-CP is used to claim credit payments relating to interest on:

• Qualified School Construction Bonds
• Build America Bonds
• Recovery Zone Economic Development Bonds
• New Clean Renewable Energy Bonds
• Qualified Energy Conservation bonds
• Qualified Zone Academy Bonds

If you have questions about whether your local government has to use Form 8038-CP, let us know.