BRADENTON, Fla. – Bankrupt Jefferson County, Ala., has finalized a closing agreement with the Internal Revenue Service to resolve issues about the county’s tax-exempt sewer system warrants in return for a $4.5 million payment.

The deal protects the tax exemption on about $3 billion of sewer warrants from the time they were issued through June 30, 2015, according to a notice posted on the Municipal Securities Rulemaking Board’s EMMA website Aug. 21. The county paid $4.5 million to the IRS from sewer system revenues.

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