The Internal Revenue Service is requesting public comment on existing rules governing when tax-exempt bond proceeds used for reimbursement are treated as an expenditure.
The rules, T.D. 8394 under Section 150 of the tax code, which clarify when the allocation of bond proceeds to reimburse expenditures previously made by an issuer of a tax-exempt bond is treated as an expenditure of bond proceeds.
Under the regulations, the issuer must express a reasonable official intent, on or prior to the date of payment, to reimburse the expenditure so that it is not a "device" that would evade IRS requirements.
There are no changes to the existing regulation.
Written comments should be received on or before June 11.
All written comments should be directed to Yvette Lawrence, IRS, Room 6129, 1111 Constitution Ave, NW, Washington, D.C., 20224. Requests for additional information or copies of the regulation should be made to Katherine Dean, at (202) 622-3186 or IRS, Room 6242, 1111 Constitution Ave. NW, Washington, DC. 20224 or Katherine.firstname.lastname@example.org.