8.3.6 Recordkeeping and Retention
Good recordkeeping and retention practices are essential in establishing compliance with applicable federal tax law requirements should an issuer become the subject of an IRS audit. Generally, the following documents should be retained for the life of the bonds (plus 3 years):
- Transcript of bond transaction
- Form 8038, Form 8038-G, or Form 8038-GC filed with IRS and provided as a part of the bond transcript
- Documentation evidencing use of bond financed property by general public and nongovernmental users, including copies of management contracts and leases
- Documentation evidencing all sources of payment or security of the bonds
- Documentation pertaining to any investment of bond proceeds
- Documentation regarding the allocation of bond proceeds to expenditures
- Documentation regarding allocations of bond proceeds to bond issuance costs
- Copies of requisitions, draw schedules, draw requests, invoices, bills, and cancelled checks related to bond proceeds spent during the construction period
- Copies of all contracts entered into for the construction, renovation, or purchase of bond financed facilities
- Records of expenditure reimbursements incurred before issuing bonds for facilities financed with bond proceeds
- Asset list or schedule of all bond financed facilities or equipment
- Records regarding the purchase and sales of bond financed assets
- Copies of rebate or yield restriction reports or calculations, together with any Form 8038-T filed in connection with rebate payments
If bonds are refunded with tax exempt refunding bonds, the documents should be retained for the life of the refunding bonds (plus 3 years).