IRS

Two issuers, the San Diego County Regional Airport Authority and the Village of Franklin Park, Illinois, have disclosed in the past week that they’re under audit by the Internal Revenue Service.

Tax-exempt bonds are a very different area of the law.

The Internal Revenue Service’s Tax Exempt Bond program will not be significantly overhauled as part of the agency’s restructuring and modernization efforts, officials say, but there are a few changes to forms and procedures that bear paying attention to.

Another correctional facility avoids a private business use tax penalty.

The IRS extension allowing TEFRA hearings to be completed over the phone through March 31, 2022, might well be extended even more, tax lawyers say.

The IRS notified the city that its audit was closed with no change to the bonds' tax-exempt status, according to an EMMA notice posted this week.

The two issuances under IRS scrutiny join an earlier debt issuance the county disclosed publicly late last year.

Although many IRS audits of tax-exempt bonds are not reported on EMMA, the fact that only three have been reported almost halfway through the year highlights the recent drop in enforcement actions.

The overhauled funding stream would allow the IRS to fairly enforce the tax code, modernize its IT systems, and improve taxpayer services, according to the bill's sponsor.

In Montana, two school districts and the state government reported that a new state law signed by the governor on May 6 will end the state tax deduction for certain school bonds after 2023 if those bonds are federally taxable.