WASHINGTON — State and local governments will be able to buy and temporarily hold their tax-exempt bonds, including auction-rate securities, for another year without causing the bonds to be considered reissued for tax purposes, the Internal Revenue Service said yesterday.

In a five-page notice, the IRS extended the expiration date for temporary rules allowing issuers to buy and hold tax-exempt ARS, variable-rate bonds, and commercial paper from Dec. 31 of this year to Dec. 31, 2010.

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