The Internal Revenue Service is looking for two representatives of the tax-exempt bond community to serve on its 21-member Advisory Committee for the Tax-Exempt and Government Entities Division, called ACT.
The IRS issued a notice on Thursday, and put a notice in the Federal Register on Monday, asking anyone interested to submit an application for either of these slots before Dec. 2.
The IRS is also looking for two representatives of exempt organizations, one of Indian tribal governments, and two from the employee plans area.
Those chosen for the advisory committee will serve two-year terms, beginning in June 2012. The IRS often extends a two-year term to a third year, advisory committee members said.
Federally registered lobbyists need not apply since they are not permitted to serve on the committee.
The tax-exempt bond community members rotating off the board are David Cholst, a partner at Chapman and Cutler LLP in Chicago, and George Magnatta, chairman of Saul Ewing LLP’s public finance practice in Philadelphia. Each of them are in their third year on the advisory committee.
Michael Bailey, a partner with Foley & Lardner LLP in Chicago, is also on the committee and will remain on it for the time being.
The advisory committee issues a report each June. This year it urged the IRS to treat the borrowers rather than the issuers in muni-bond conduit deals as taxpayers for compliance matters so it can deal with them directly and not create unneeded burdens for transaction participants.
Historically, the IRS has treated issuers as taxpayers, but the advisory committee reasoned that this doesn’t make sense in a conduit deal because the issuer is loaning the proceeds to the borrower and is not responsible for their use.
The advisory committee also urged that tribal economic development, or TED, bonds be freed from certain restrictions, primarily the requirement that the bonds be used to finance projects with “essential governmental functions.”
Tribal governments have longed complained that the restriction is unfair because muni issuers are not subject to it.