What This Notice Means
The IRS received your Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds. The CP152A explains why the IRS reduced the credit payment you requested.
Why the Payment Was Reduced
Under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments to, and refund offset transactions for, certain state and local government filers of Form 8038-CP are subject to sequestration.
In practice, any refund payments and refund offset transactions processed between October 1, 2020, and September 30, 2030, are reduced by 5.7%. The reduction applies no matter when the IRS received your form.
What to Do
You don't need to take any action.
- Keep this notice for your records.
- Make sure your finance office records the reduced amount, not the amount requested, so your books match what was actually paid.
Can You Appeal?
No. The law requires this reduction, and it can't be appealed. Don't spend time or money trying to fight it.
One Notice per Form
If you filed more than one Form 8038-CP, you'll receive a separate notice for each one.
When to Call
The sequestration reduction itself is fixed. But if the reduction on your notice doesn't match the 5.7% figure, or the notice relates to a form you don't recognize, call the number on your notice. You can authorize a representative with Form 2848.
If your organization received a CP152A notice and has other questions about its bond filings, call us at (813) 229-7100.