Archives: Private Business Use

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The Invisible Hand

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

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

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

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

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

(Jake Smith also co-authored this post.) 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 … Continue Reading

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

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

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
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