WASHINGTON — An Internal Revenue Service agent is warning the Crystal City, Tex., Public Facilities Corp. that $13.9 million of bonds it issued in 2003 to purchase a jail may not be tax-exempt because the agency appears to have exceeded private business-use limits.

The issuer disclosed the warning from IRS agent Cathy Webster in a material event notice posted recently on the Municipal Securities Rulemaking Board's EMMA site.

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