WASHINGTON — The Internal Revenue Service is seeking public comments on two matters related to private-activity bonds: final regulations for those issued to finance power facilities and the form issuers must file to elect a carryforward of unused volume cap.
No changes have been made to either document, but the IRS is seeking comments as part of an ongoing information-collection effort.
The public has been asked to weigh in on final rules published in 2001 that provide guidance for nongovernmental persons who locally furnish electric energy or gas using bond-financed facilities. Specifically, the rules lay out the steps the person must take to protect the tax-exempt status of the bonds if the service area is expanded beyond tax-law requirements.
Meanwhile, the IRS also wants to hear from the public on Form 8328, which private-activity issuers must file if they want to carry forward any unused volume capacity. State and U.S. territory issuance of PABs are capped annually based on their population figures.
Currently the cap is $90 per capita or $273.775 million, whichever is higher. Unused cap can be carried forward into the next year for three consecutive years, provided the issuer makes an irrevocable election to carry it forward by filing the form.
On both documents, the IRS is seeking input on whether the collection of information is necessary for the proper performance of the agency and whether it has accurately estimated how much work and time it takes to comply with the documents.
The IRS also wants to know how to enhance the quality of the information collected, how to minimize the burden put on respondents, and the costs of providing the information requested.
Anyone wishing to comment on either document must respond to the IRS by May 10.