The Vermont Student Loan Assistance Corp., which has been in discussions with the Internal Revenue Service to settle a tax law dispute over $165 million of auction-rate securities it sold in 1998, disclosed that the IRS is expanding its audit to include more of the issuer’s ARS.

The loan agency said the information it provided the IRS in settlement talks led to the expansion of the audit, which was initiated in 2009. The ARS were sold to finance the origination or purchase of student loans.

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