The Internal Revenue Service closed an audit of $39.24 million general obligation bonds issued in 2007 by Manchester, Conn., with no change to the bonds' tax-exempt status.
The authority disclosed the closure of the audit in an event notice it filed with the Municipal Securities Rulemaking Board's EMMA system late last week.
"We have made a determination to close the examination with no change to the position received by the beneficial owners of the bonds is excludable from gross income under section 103 of the Internal Revenue Code," the IRS told the city, according to the notice.
The bonds were used for various school and general purpose projects, according to bond documents.
The city had disclosed the start of the IRS audit last July.
Citi was underwriter. Murtha Cullina LLP was bond counsel. The bonds were insured by MBIA.