IRS

The two regulatory agencies are working to ensure a seemless transition to another benchmark when Libor is phased out in 2021.

The fallout from a 2017 federal fraud case is continuing to impact bond investors with the latest development involving the loss of tax-exempt status for bonds that were issued for two assisted living facilities in Georgia.

New York Gov. Andrew Cuomo sent letters to the Internal Revenue Service and to Treasury's Inspector General for Tax Administration threatening litigation and and asking for a probe of alleged undue political interference.

Congress could pass legislation authorizing advance refundings and liberalizing private activity bond restrictions to aid in disaster recovery, NABL said.

The proposed Treasury rules would limit states' use of charitable deductions as workarounds for the $10,000 cap on the federal deduction for state and local taxes.

The cut has dropped from 6.6% in fiscal 2018 and 6.9% in fiscal 2017. The initial sequestration cut in fiscal 2013 was 8.7%.

The bonds were issued by the Chester County Industrial Development Agency for West Chester University in Pennsylvania.

The Trump administration’s effort to publish a proposed rule comes just over two months after the IRS announced May 23 it was working on the regulations to enforce the $10,000 cap on what previously was an unlimited personal deduction of state and local taxes, also known as SALT.

The Public Employee Pension Transparency Act (HR 6290) would prohibit states and localities from issuing tax-exempt bonds unless they file annual reports on their public pension systems to the U.S. Treasury Department.

The 1.2-percentage point reduction will amount to $12,000 in saving on a $1 million tax settlement.