WASHINGTON - An Internal Revenue Service audit of bonds issued in connection with a Montana continuing care retirement facility could have widespread implications regarding whether refundable entrance fees common to CCRCs are so-called "replacement proceeds" whose investment must be yield-restricted for arbitrage purposes.

"We've very aware of [the audit]," said Steve Maag, director of assisted living and continuing care for the American Association of Homes and Services for the Aging, a national organization of 5000 nonprofit retirement facilities. "We view this as something that ultimately could put at risk the way CCRCs currently operate and ultimately cause seniors to either have less services or have to pay more money for their services."

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