CHICAGO - Treasury Department officials are looking into whether a glitch in the American Recovery and Reinvestment Act could prevent Build America Bond issuers from challenging the Internal Revenue Service in a U.S. District Court in an effort to reclaim federal subsidy payments halted as a result of an audit.

Speaking on a panel at a meeting of the American Bar Association's committee on tax-exempt financing here, W. Mark Scott, a tax lawyer and former director of the IRS' tax-exempt bond office, told Clifford Gannett, the current TEB director, that he believes a portion of the law was improperly written, and needs to be fixed to ensure issuers can access all their legal options.

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.