WASHINGTON - In what appears to be the first publicly disclosed case under its new arbitrage rebate compliance initiative, the Internal Revenue Service opened an audit of $59.6 million of South Dakota Health and Educational Facilities Authority's 2002 revenue bonds and then closed it in less than five weeks without a change to the bonds' tax-exempt status.

The IRS also opened a seemingly routine examination of $40 million of revenue bonds that were issued in 2002 by the Illinois Health Facilities Authority for the Riverside Health System.

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