WASHINGTON – The Internal Revenue Service has determined that PILOT revenue bonds issued by the District of Columbia as part of a much lauded public-private partnership to build a new elementary school are taxable.

The district received a Jan. 19 "Proposed Adverse Determination" from the IRS, according to a notice filed on the Municipal Securities Rulemaking Board's EMMA website. The Proposed Adverse Determination is the final step by the IRS' tax-exempt bond office (TEB) in determining taxability. It can be appealed to the IRS' Office of Appeals.

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