PHOENIX — A major component of the compliance questionnaire the Internal Revenue Service plans to send to issuers of Build America Bonds will examine how issuers are complying with the rule that all BAB project proceeds go towards capital expenditures, an IRS official said here Friday.

Carl Scott, a group manager with the IRS' tax-exempt bond branch, told bond attorneys here that one goal of the survey is to inform BAB issuers that they need to be prepared to prove that their bonds are still compliant after the issue date. He made his comments while speaking on a panel at the National Association of Bond Lawyer's annual Bond Attorneys' Workshop here.

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