Tax-exempt bonds

An easier procedure for declaring when a reissuance occurs is among NABL's recommendations.

The household sector owned 42.2% of the nation’s $3.83 trillion in municipal securities in the second and third quarters of 2018, according to Federal Reserve data.

“Major banking organizations have now used this abusive tax shelter scheme to illegally shelter well over $1 billion in taxable income,” said the letter by W. Mark Scott.

The National Association of Bond Lawyers's letter to lawmakers emphasized the infrastructure benefit of protecting the muni market.

Richard Neal, D-Mass., raised optimism among state treasurers that advance refunding of municipal bonds may be part of "a combination of funding sources."

None of the 12 recommendations require congressional action and all are within the scope of the administrative powers of the IRS, according to NABL.

The U.S. Court of Appeals for the District of Columbia ordered a district judge to review four documents totaling 16 pages in an IRS Office of Professional Responsibility case file for possible release under the federal Freedom of Information Act.

The municipal bond industry received no indication from Trump on whether his administration might support expanded use of tax-exempt bonds as part of infrastructure legislation this year.

The National Association of State Treasurers wants Congress to know its top priority is preserving the muni tax exemption.

GFOA’s goal is to get a majority of House members to sign a letter pledging not to touch the tax exemption as they debate new infrastructure funding proposals.

Rep. John Yarmuth of Kentucky wants to end automatic across-the-board budget cuts that include a reduction in the subsidy for direct-pay Build America Bonds.

The legislation would leverages $8 billion in federal investment into $226 billion worth of bond authority over the next 10 years.

It’s unclear if monthly federal subsidy payments on Build America Bonds will be made.

The Federal Register publication of the finalized PAB regulation takes effect April 1, but part of it can be implemented by issuers immediately.

The Internal Revenue Service has told bond attorneys that the law doesn’t explicitly say that veterans are a special needs population under the rules for the tax-exemption for multifamily private activity bonds.

The IRS letter ruling publicly released Friday allows floating private equity to be used for a prohibited use for a tax-exempt bond-financed airport terminal renovation.

The change in control of the House does end the threat of Republicans terminating the tax-exemption of private activity bonds to help pay for additional tax cuts, but the cost includes the loss of some industry allies such as Rep. Randy Hultgren, R-Ill.

The IRS announcement of an advisory committee shuffle has some lawyers nervous.

Three areas are new additions to the work plan of the Tax Exempt and Government Entities Business Operating Division, IRS officials said.

The memo appears to respond to a March 29 written request by the National Association of Bond Lawyers to Christie Jacobs, director of the IRS Indian Tribal Governments/Tax Exempt Bonds Office to clarify the new law.