WASHINGTON — In some of its 32 Build America Bond audits, the Internal Revenue Service has raised concerns about whether premiums paid for bond insurance could disqualify the bonds as BABs and jeopardize the federal subsidy payments made to the issuers, according to bond lawyers and IRS officials.

Allyson Dodd, an IRS tax-exempt bond field manager in Chicago, talked about the BAB audits at a recent meeting of bond lawyers. She said that half of the 32 audits have been closed with no change to the status of the bonds and that the rest are ongoing.

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