The Internal Revenue Service’s tax-exempt bond branch will have to remain watchful that bond programs authorized by the American Recovery and Reinvestment Act are not used beyond their legal limits, according to a report released yesterday by the Treasury Department’s Inspector General for Tax Administration.

ARRA authorized state, local, and tribal governments to issue more than $45 billion of new bonds so it is vital that the bond branch ensures issuance does not exceed legally mandated program caps, TIGTA said in the report.

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