Archives: Rebate

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Someone Left the Crayons Out, and Now the Tax Lawyers Are Drawing Pictures (updated)

Timing, as they say, is everything. The tax-exempt bond rules are full of deadlines and sunsets, both before and after the issue date and before and after the project is finished. Click above for a diagram of how some of these rules work together. It’s by no means exhaustive, but certainly exhausting. Maybe you’ll find it … Continue Reading

Final Arbitrage Regulations Require “Look Through” to a Grantee’s Use of Bond Proceeds: A Big “So What?”

From time to time, issuers will use bond proceeds to make grants to accomplish a governmental purpose. For example, a State bond issuer may make grants to various counties and cities to help with the cost of local transportation improvements. Under the arbitrage regulations (Reg. 1.148-6(d)(4)), the bond proceeds are treated as spent once an issuer … Continue Reading

A Summary of the Final Regulations on Non-Issue Price Arbitrage Restrictions

On July 18, 2016, the Treasury Department published final regulations on non-issue price arbitrage restrictions (the “Final Regulations”) in the Federal Register. The Final Regulations finalize regulations proposed in 2007 and 2013 (collectively, the “Proposed Regulations”).  Click here for a copy of the Final Regulations, and read below for a high-level summary of them.  We … Continue Reading

50% Rebate Penalty – Will It Ever Be Waived on Audit?

At least from this practitioner’s perspective, in the earlier days of IRS bond audits, there were substantial inconsistencies in IRS practices.  Different documents were requested by the examining agents, different tax-exemption requirements were reviewed, and different positions were taken with respect to those requirements.  And this was the case taking into consideration the various audit … Continue Reading

Arbitrage Rebate Refunds – Final Regulations

The IRS published final regulations on November 13, 2014, governing claims for refund of arbitrage rebate overpayments.  The final regulations do three main things. First, they set a two-year statute of limitations on requesting refunds, running from the final rebate computation date. Second, they provide that if you file a refund request, the IRS can … Continue Reading

The New Phonebooks are Here!

New private letter rulings are here! The IRS released two new private letter rulings. Neither of them is earth-shattering. In the first, PLR 201445002, the IRS ruled that an authority created by a tribal government is a political subdivision so that it can issue tax-advantaged bonds. In the second, PLR 201445007, the IRS granted a school district … Continue Reading
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