Form 8038-CP Is this Evidence of Strawman accounts? Foreign Trust Accounts?

 

Is Form 8038-CP for those who create trust accounts without our knowledge? 


SECTION 3. SCOPE AND APPLICATION OF REFUNDABLE CREDIT PROCEDURES FOR BUILD AMERICA BONDS

3.1  Refundable Credit Implementation Plans for 2009.

(a)  In General. The IRS and the Treasury Department plan to implement the initial refundable credit payment procedures for 2009 for Build America Bonds (Direct Payment) and Recovery Zone Economic Development Bonds (Direct Payment) as promptly as possible to enable state and local governments to begin issuing these bonds for authorized purposes to promote economic recovery and job creation. The IRS and the Treasury Department expect that an IRS form for requesting the Federal share of interest on these bonds, new IRS “Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds,” will be available on the IRS website on or about the date of release of this notice. The IRS will be prepared to accept such forms for processing by May 1, 2009, and the IRS and Treasury Department will be prepared to make timely payments with respect to interest payment dates beginning on or after July 1, 2009, as further described below.

In particular, the initial refundable credit procedures will require an issuer to submit a Form 8038-CP to request payment of the amount of the credit within a prescribed time before or after each applicable interest payment date, depending on whether the bonds are fixed rate bonds or variable rate bonds, as described below. Issuers should expect to receive requested payments within 45 days of the date that a processible Form 8038-CP is filed with the IRS. See § 6611(g).

When credit payments are made, the IRS will send the payments to the requested recipient’s “last known address,” as that phrase is defined and determined under Treas. Reg. § 301.6212-2 and Rev. Proc. 2001-18, 2001-1 C.B. 722, or any successor guidance. In the case of credit payments sent to a person other than the issuer, the last known address may not be the address the issuer provided on the Form 8038-CP. The instructions to the Form 8038-CP will provide instructions on how an issuer or trustee can verify and update the address of record.

(b)  Fixed Rate Bonds. In general, for fixed rate bonds, upon receipt of a timely filed Form 8038-CP requesting payment of the credit, such amount will be paid on a contemporaneous basis by the applicable interest payment date. For fixed rate bonds, the due date for an issuer to file a Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is the 45th day before the applicable interest payment date with respect to the bonds. This return, however, may not be filed earlier than the 90th day before the relevant interest payment date.

(c)  Variable Rate Bonds. In general, for variable rate bonds, upon receipt of a timely filed Form 8038-CP requesting payment of the credit, such amount will be paid quarterly on a reimbursement basis for interest paid by the issuer during the quarter, including the interest payment date with respect to which the return requesting payment relates. For variable rate bonds, the due date for an issuer to file a Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is the 45th day after the last interest payment date within the quarterly period for which reimbursement is requested.


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