The American Bar Association’s tax group is urging the Treasury Department and Internal Revenue Service to publish guidance confirming that bond counsels’ long-standing practices for bonds issued to finance grants comply with tax law requirements.

The guidance should address the terms of the bonds as well as private-activity bond and arbitrage issues. It would affect billions of dollars of debt already outstanding as well as new issues, including some Build America Bonds, according to a letter the ABA section of taxation sent to IRS commissioner Douglas Shulman and other regulatory officials on Jan. 5.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.