Instructions For Form 8038-T {8038-T}

Instructions for Form 8038-T (Rev. April 2011), Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, Under section 148(f), interest on a state or local bond is not 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 non-purpose investments. Issuers of tax-exempt bonds and any other bonds subject to the provisions of section 148 must use this form to make arbitrage rebate and related payments. www.FormsWorkflow.com