The Internal Revenue Service has sent out about 110 of 200 planned correspondence examinations to private-activity bond issuers as part of its arbitrage-rebate compliance initiative, and those audits could be expanded if the agency finds significant noncompliance with requirements, an IRS official told lawyers meeting here Friday.

Speaking at a meeting of the American Bar Association's tax-exempt financing committee, Clifford Gannett, director of the IRS' tax-exempt bond office, also clarified that while the "Information Document Requests" accompanying the examination letters require issuers to submit copies of documents and procedural information similar to post-compliance surveys sent to charitable issuers, the goals of the two projects' should not be misconstrued.

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