WASHINGTON — A large local school district that cannot issue the qualified school construction bonds the Internal Revenue Service allocated to it will lose the allocation unless it transfers it to the state, which can then carry it forward indefinitely, an IRS attorney said last week.

The remark was made by ­Aviva Roth, an attorney in the IRS’ associate chief counsel’s office for the financial institutions and products division, at the National Association of Bond Lawyers’ Bond Attorney’s Workshop meeting in Phoenix. The comment led some market participants to wonder if ­Congress intended to deprive school districts of the ability to carry forward their QSCB allocations, or if the law contains a glitch that needs to be corrected in follow-up legislation.

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