Tax

CDFA plans to support tax-exempts and promote legislation to ease restrictions on bonds, according to its 2017 policy agenda

Factually flawed methodology utilized by the Joint Committee on Taxation poses a key challenge as the municipal market seeks to maintain full access to the tax exemption.

Tax-exempt governmental bonds will result in revenue losses to the federal government of $194.7 billion over the five fiscal years 2016-2020, the Joint Committee on Taxation estimated in a report this week.

The Internal Revenue Service has initiated an audit of $26.5 million of zero coupon bonds issued by an authority in Wisconsin last August to monetize a grant Dallas gave to a company redeveloping buildings that housed the old Statler Hotel and Dallas Public Library.

The Internal Revenue Service has told the California Municipal Finance Authority that $32.5 million of refunding bonds it issued in 2007 for Exxon Capital Ventures, Inc. are taxable, but the borrower is disputing the finding.

President Trump’s nominee for Treasury Secretary Steven Mnuchin told lawmakers in writing that he plans to “enhance” private activity bonds so that they can be used to encourage more private investment in infrastructure projects.

Unspent proceeds at the time of a current refunding will not cause Build America Bonds to lose their qualified status for Treasury subsidy payments, the Internal Revenue Service recently found in a recent private letter ruling.

The Internal Revenue Service has published a new revenue procedure updating management contract safe harbors to address certain types of compensation, the timing of the payment of compensation, the treatment of land, and the methods of approval of rates.

A coalition of more than 60 muni advocates will work to uphold President-elect Donald Trump’s support for the muni exemption, the U.S. Conference of Mayors said this week.

The Internal Revenue Service Whistleblower Office awarded more than $61 million to whistleblowers in fiscal 2016, the agency said Thursday.