WASHINGTON — The Internal Revenue Service is auditing general obligation refunding bonds issued by the Clark County, Nev., School District in 2006.
The issuer disclosed the audit in an event notice posted on the Municipal Securities Rulemaking Board's EMMA system on Wednesday.
The bonds were originally issued in the amount of $153.93 million, and the final maturity for the issue is June 15 of this year, according to the official statement.
The IRS informed the school district of the audit in a letter last month and said that it routinely examines bond issuances. The district said in the event notice that it intends to cooperate with the IRS.
The Information Document Request enclosed with the IRS letter asks for "focused advance refunding bond information."
Advance refunding bonds are one of the types of bonds the IRS is looking at under its market segment program. In this program, the IRS is testing its hypotheses about where there may be the greatest risk of noncompliance.
The school district has the same boundaries as Clark County, which includes Las Vegas.
The district's series 2006A bonds were issued to refund bonds issued in 1996 and 2002. The 1996 bonds had a redemption date of June 15, 2006 and the 2002 bonds had a redemption date of June 15, 2012, according to offering documents.
Nevada State Bank Public Finance was financial advisor on the 2006 bond issue, and Swendseid & Stern, a member of Sherman & Howard LLC, was bond counsel, according to the official statement.
