In the world of nonprofit taxes, there are so many forms that are required to be filed for different organizations. This can be difficult to keep track of, especially for smaller organizations with very specific filing needs.
That’s why ExpressTaxExempt is here to help! We stay ahead of all the IRS updates and required tax forms so that your organization doesn’t have to! We have now added another form to our line-up, the 8038-CP.
Form 8038-CP is a less familiar tax form for nonprofits, but it is a significant one. Here is a helpful overview of this form’s purpose and IRS requirements.
Background Information on the Form 8038-CP
Before we get into more detailed information on this form, let’s cover some background information. This form was created as a result of the American Recovery and Reinvestment Act of 2009 (ARRA).
This was passed as a way to stimulate the economy and create hiring incentives. This was done by issuing bonds. The government elected tax-exempt organizations to issue these bonds.
These organizations are able to file Form 8038-CP to claim payments from the federal government for the credit allowed for the interest payments on these bonds.
What is Form 8038-CP?
This form is used by tax-exempt organizations that issued certain types of bonds. This form allows them to claim the credit allowed for the interest payment on these bonds from the federal government. The applicable bonds are as follows:
Build America bonds (BAB)
New clean renewable energy bonds (NCREB)
Qualified energy conservation bonds (QECB)
Qualified zone academy bonds (QZAB)
Qualified school construction bonds (QSCB)
Recovery zone economic development bonds (RZEDB)
What is the Deadline to File Form 8038-CP?
The deadline of this form is based on the rate of the bond.
Fixed-rate Bonds: Form 8038-CP must be filed no later than 45 days before the interest payment is due, but no more than 90 days before the interest payment is due.
Variable-rate Bonds: Form 8038-CP must be filed no later than 45 days after the issuer knows the interest payment is due. The form should not be filed more than 90 days before the interest payment is due.
*If the issuer of the bond doesn’t know that the payment is due within 45 days, they should track their credit payments on a quarterly basis and file 8038-CP no later than 45 days after the last interest payment was due.
What is Schedule A?
Attaching Schedule A to Form 8038-CP is necessary if the type of bond issued by the organization was a New Clean Renewable Energy Bond (NCREB), Qualified Energy Conservation Bond (QECB), Qualified Zone Academy Bonds (QZAB), or a Qualified School Construction Bond (QSCB).
Schedule A eliminates the need for issuers to file a separate 8038-CP to report the specifics of each bond.
E-file Form 8038-CP with ExpressTaxExempt
ExpressTaxExempt now supports the e-filing of Form 8038-CP. As your tax-exempt filing experts, we are here to help you complete this form easily and transmit it to the IRS. Our team is available to assist you during the filing process!
In addition to a simple and secure e-filing process, ExpressTaxExempt offers special pricing for tax professionals and time-saving features.
Get started with ExpressTaxExempt today for accurate and cost-effective e-filing of Form 8038-CP and many more tax-exempt tax forms!