The Internal Revenue Service is kicking off the first round of audits of Build America Bonds and is asking issuers if any potentially related entities, such as pension plans, are buying their BABs, according to issuers and IRS officials.

The IRS is notifying several BAB issuers that their bonds are being audited and is asking them to provide information about their pricing, including who is purchasing them and how the proceeds are being allocated to expenditures.

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