Tax News

CCH (cch.taxgroup.com) reports:

The IRS has issued guidance for issuers of tax-exempt bonds on how to make claims for recovery of overpayments with respect to arbitrage rebates under Code Sec. 148(f)(2), penalties in lieu of rebates under Code Sec. 148(f)(4), and yield-reduction payments under Reg. §1.148-5(c). In order to receive recovery of an overpayment, the issuer must file a refund claim by completing Form 8038-R, Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, and filing the form and any attachments with the IRS, Ogden Submission Processing Center, Ogden, Utah, 84201.
In general, the form must be filed no later than the date that is: (1) two years after the final computation date for the applicable bond issue, for an issue of bonds whose final computation date is after June 24, 2008, or (2) two years from July 1, 2008, for an issue of bonds whose final computation date is on or before June 24, 2008.
The IRS also outlined the procedures that it will employ in processing refund claims for overpayment amounts. Any necessary refinements or revisions of these procedures will be published in the Internal Revenue Manual. If the IRS rejects a claim and issues a Refund Claim Denial letter, the issuer may appeal the Refund Claim Denial to the IRS Office of Appeals, pursuant to section 3.01 of Rev. Proc. 2006-40, I.R.B. 2006-42, 694. This newly issued guidance obsoletes Rev. Proc. 92-83, 1992-2 CB 487.
Rev. Proc. 2008-37, 2008FED ¶46,482
Other References:
Code Sec. 148
CCH Reference - 2008FED ¶7889.50
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