Private Business Use

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The Invisible Hand

By Squire Patton Boggs on July 16, 2015 Posted in Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Naming Rights, Private Business Use

An unnecessary (but hopefully interesting) introduction: Earlier this year, the great economist and mathematician, John Nash, passed away in a car accident outside his home in New Jersey. In 1994, John Nash won the Nobel Prize (formally referred to as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) for economics for … Continue Reading

Musings on Naming Rights

By Squire Patton Boggs on June 19, 2015 Posted in Naming Rights, Private Business Use

Why is it that payments for naming rights for projects financed by tax-exempt bonds are treated as giving rise to private business use but those same payments made to a tax-exempt organization do not give rise to unrelated trade or business income?… Continue Reading

IRS Private Letter Ruling “Shinin’ Down Like Water”

By Squire Patton Boggs on February 25, 2015 Posted in Exempt Facility Bonds, Private Business Use

In 1971, Creedence Clearwater Revival (CCR) released the song, “Have You Ever Seen the Rain”. One line in the song says “When it’s over, so they say, it’ll rain a sunny day, I know, shinin’ down like water”. We have to concede that when it comes to song lyrics, poetic license occasionally must trump the … Continue Reading

Our Holiday Gift to You – Rev. Proc. 97-13, as Modified and Amplified, In a Single Document

By Bob Eidnier on December 17, 2014 Posted in Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Activity, Private Business Use

It has now been almost two months since the IRS issued Notice 2014-67 and the initial euphoria of tax lawyers across the country has begun to wane. (To relive that excitement, please visit our posts of October 24, October 28 and November 5, reporting the new opportunities created by this Notice.) Today we return to … Continue Reading

IRS Scrutiny Puts Prison Financings on Lockdown

By Bob Eidnier on November 12, 2014 Posted in Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Business Use

Few prospects are more terrifying than either an audit by the Internal Revenue Service or anything involving prison. Put the two together, and you not only have a nightmare worthy of Stephen King, you begin to appreciate how some issuers of tax-exempt bonds have been feeling recently. As reported in the press ($), several issuers … Continue Reading

Notice 2014-67 – The Accountable Care Organization Provisions

By Squire Patton Boggs on November 5, 2014 Posted in ACOs, Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Activity, Private Business Use

In our last post, we discussed the unsung hero of IRS Notice 2014-67 – the new, 5-year safe harbor from private business use that everyone – governmental users and 501(c)(3)s, and not just Accountable Care Organizations (ACOs) – can use immediately for management contracts covering a bond-financed facility. The much more publicized, limelight-hogging aspect of Notice 2014-67 relates … Continue Reading

Notice 2014-67 Gives EVERYONE a New Private Business Use Safe Harbor

By Michael Cullers on October 28, 2014 Posted in Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Activity, Private Business Use

Moby Dick is not a book about the whaling industry, The Godfather is not a movie about cannoli, and IRS Notice 2014-67 is not just about accountable care organizations (ACOs). You’re going to be inundated with coverage about this new Notice, and it’s all going to focus first on the new safe harbor from private business use … Continue Reading

IRS Issues Notice 2014-67, Providing Guidance on Accountable Care Organizations and Management Contracts

By Michael Cullers on October 24, 2014 Posted in Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Activity, Private Business Use

The Internal Revenue Service today issued Notice 2014-67, a copy of which is linked below. This Notice provides long-awaited guidance on the extent to which private business use of a tax-exempt bond-financed facility results from participation in an accountable care organization. This Notice also amplifies existing guidance under Revenue Procedure 97-13 regarding the types of … Continue Reading

Similarly Situated

By Squire Patton Boggs on October 8, 2014 Posted in Audits, Management contracts/Rev. Proc. 97-13/Rev. Proc. 2016-44/Rev. Proc. 2017-13, Private Business Use, VCAP

Like most organizations, the IRS Tax-Exempt Bond Division (TEB) is facing a shrinking budget and a shrinking workforce. In response, the magic word at TEB these days is “efficiency.” As part of that effort, TEB has established policies that seek to maintain uniformity in the settlement amounts that arise from examinations (audits) or within the … Continue Reading