TITLE

IRS Identifies 24 Issuers That May Have Done Yield Burning

AUTHOR(S)
Barnett, Susanna Duff
PUB. DATE
April 2004
SOURCE
Bond Buyer;4/30/2004, Vol. 348 Issue 31874, p5
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
Reports on the identification of the Internal Revenue Service (IRS) of several issuers that may have violated arbitrage rules in advance refunding transactions by engaging in yield burning in the U.S. Consideration of counting the cost of a put option in an advance refunding defeasement escrow as an investment cost; Content of the letter sent to investment banks by the tax agency on the number of options each firm sold; Urge of Mark Scott, director of the IRS' tax-exempt bond division for issuers to come forward on their own through the voluntary compliance agreement program.
ACCESSION #
12986457

 

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