WASHINGTON — The Metropolitan Water Reclamation District of Greater Chicago has disclosed that the Internal Revenue Service is examining $600 million of Build America Bonds it issued in August 2009 — the second IRS audit of BABs announced in less than a week.

The district’s material-event notice disclosing the audit, published late Friday on the Municipal Securities Rulemaking Board’s online EMMA system, also noted that the bonds are subject to a Securities and Exchange Commission inquiry.

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.