IRS Refunding Proposals Raise Concerns With Lawyers

Duff, Susanna
May 2003
Bond Buyer;5/12/2003, Vol. 344 Issue 31633, p3
Trade Publication
Issuers and bond counsel may face increased burdens under proposed regulations the U.S. Internal Revenue Service will publish on that would mandate how issuers calculate private-activity use and payments for refunding bonds, lawyers said May 9, 2003.Because the private-business use and payments are averaged over the life of a bond, an issuer may exceed 10 1241328n the first several years but still keep its tax-exempt status by reducing use and payments in later years.Mitch Rapaport, the National Association of Bond Lawyers tax committee chairman and a tax partner with Nixon Peabody here, said the proposed rules are reasonable because they would stop issuers who purposely refund a bond they have front loaded with private business in order to get a clean slate.Attorneys emphasized that they had not seen the regulations and had only read an article about them in The Bond Buyer that was based on a description that Steve Watson, an associate tax legislative counsel for the Treasury Office of Tax Policy, gave in remarks to the Council of Infrastructure Financing Agencies' conference here as of May 15, 2003.


Related Articles

  • IRS Auditing $19 Million of Missouri IDA Tax-Increment Refunding Bonds. Hume, Lynn // Bond Buyer;6/16/2011, Vol. 376 Issue 33534, p4 

    The article reports on the audit made by the U.S. Internal Revenue Service (IRS) on the 19 million U.S. dollars tax-increment refunding revenue bonds issued by the Industrial Development Authority (IDA) of the City of Florissant in Missouri in 2003.

  • Nevada Corporations Accept IRS Agreement. McConnell, Alison L. // Bond Buyer;8/28/2006, Vol. 357 Issue 32454, p5 

    The article reports on the closing agreement of the Internal Revenue Service (IRS) with two corporations in Nevada. The Desert Springs Community Corp. and developer Mojave Valley Resort Inc. stated that IRS declared their Series 1999 bonds taxable for they are private-activity bonds sold by an...

  • Panel to Weigh Urging Bond Counsel About IRS Sanctions. Hume, Lynn // Bond Buyer;6/15/2004, Vol. 348 Issue 31905, p4 

    Reports that the Government Finance Officers Association's committee on governmental debt management has considered revising its guidelines to encourage issuers to ask bond counsel and finance professionals whether they have been sanctioned by the U.S. Internal Revenue Service. Update on the...

  • IRS: Bank Subsidiaries Can't Help Skirt Taxes. Ferris, Craig T. // Bond Buyer;8/24/2004, Vol. 349 Issue 31954, p5 

    Reports on the issuance of technical advice memorandum by the Internal Revenue Service covering banks' tax-exempt bonds in the U.S. Stipulation under the memorandum; Controversy over bank deductibility; Effect of the technical advice memorandum on banks.

  • IRS Closes Audit of Pa. School District, Upholds Tax-Exempt Status of Bonds. Ferris, Craig T. // Bond Buyer;10/6/2006, Vol. 358 Issue 32482, p36 

    The article reports on the audit closure of the $27.7 million of Series 2002 general obligation bonds of the Internal Revenue Service, which was issued by Wilson's School District in Pennsylvania and maintained the tax-exempt status of the bonds. The bonds were closed to finance several capital...

  • D.C. Names Tobacco Deal Players; Sale Set for February. Vadum, Matthew // Bond Buyer;10/26/2000, Vol. 334 Issue 31004, p36 

    Reports on District of Columbia' appointment of Nixon Peabody LLP as bond counsel. Appointment of a team of eight underwriters to carry out a planned bond sale of 290 million dollars; Structure of the bonds.

  • Study: Underwriters Violating IRS Pricing Rule. Hume, Lynn // Bond Buyer;10/14/2005, Vol. 354 Issue 32238, p1 

    Reports on the failure of some underwriters to meet an Internal Revenue Service (IRS) rule on pricing, according to an academic study on trading and prices in the new-issue municipal market in the U.S. Conclusion of the study; Presentation of the study in a working paper written by professors at...

  • Notices Seek Comments on BAB Program, Small-Issue IDBs. Schroeder, Peter // Bond Buyer;7/21/2009, Vol. 369 Issue 33152, p4 

    The article reports on the move of the U.S. Internal Revenue Service (IRS) to seek comments from municipal issuers for notices to apply for federal payments under the Build America Bonds (BAB) program in the country. The IRS has also asked comments from issuers on how much time and effort it...

  • Examination. Jones, Larry // Journal of Tax Practice & Procedure;Aug/Sep2008, Vol. 10 Issue 4, p5 

    The article discusses the U.S. Internal Revenue Service (IRS) requirements for taxpayers to substantiate all expenses on a tax return and offers information to help substantiate these expenses. Focus is given on various tax codes including Code Section 6001 that requires taxpayers to maintain...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics