Tax

While the Internal Revenue Service’s revenue procedure on management contracts received widespread praise from many bond and tax lawyers who felt it would help facilitate bond financing in public-private partnerships, several attorneys also had questions or concerns about it.

The Internal Revenue Service on Monday released a revenue procedure containing safe harbors for management contracts that allows them to more easily be used in bond-financed infrastructure and other projects involving public-private partnerships.

The Treasury Department and Internal Revenue Service released their 2016-2017 priority guidance plan this week, which includes a revenue procedure on management contracts as well as regulations on issue price and political subdivisions.

An $800 million bond sale to finance New Jersey's American Dream retail development could provide fuel for critics of the municipal bond tax exemption, according to Municipal Market Analytics.

The National Association of Bond Lawyers recently announced nominees for its board officers and directors that members will vote on at its annual meeting in Chicago on Oct. 19.

Hillary and Bill Clinton released their 2015 tax return on Friday showing they paid an effective federal income tax rate of 34.2% on $10.59 million of adjusted grow income.

The federal subsidy payments made to issuers of Build America Bonds and other direct-pay bonds will be cut by 6. 9% in fiscal 2017 under sequestration, the Internal Revenue Service recently announced.

Republican presidential candidate Donald Trump on Monday described an economic plan that he said would create “the biggest tax revolution since the Reagan tax reform” and “cut regulations massively.”

Instead of subsidizing state and local governments for using tax-exempt bonds, the federal government should increase direct spending programs for states, the Tax Foundation said in a report on tax expenditures.

A Pennsylvania school district said it expects to receive a proposed adverse determination letter from the Internal Revenue Service stating general obligation bonds it issued in 2005 and advance refunded in 2013 are taxable.

A Republican lawmaker has introduced legislation in the House that would prohibit states from taxing customers making Internet and catalog purchases outside of their borders, marking the latest chapter in the ongoing debate over online sales tax.

Abstract Municipal issuer, education and utility groups are urging Republican lawmakers to maintain the tax-exemption of municipal bonds in their blueprint for tax reform.

Advocates for maintaining the tax-exempt status of municipal bonds tore apart a recent Tax Foundation report that says lawmakers should consider limiting, reforming or eliminating the muni exemption.

Four Ohio Congressmen are concerned that the Internal Revenue Service and Treasury Department's proposed definition of a political subdivision could impede a $35 million terminal improvement project for one of the state's regional airports.

Lawmakers should consider limiting, reforming or eliminating the exclusion of interest on municipal bonds, The Tax Foundation said in a report.

The Internal Revenue Service has closed audits and left the tax-exempt status unchanged for $311.28 million of community development district bonds in Florida that started the whole debate about political subdivisions and led the tax agency to propose controversial rules for such districts earlier this year.

A repeal of the tax exemption for municipal bonds would cost state and local governments an additional $495 billion in interest over a ten-year period, Bond Dealers of America told Congress recently.

The Treasury Department and the Internal Revenue Service released final arbitrage rules on Friday that address issues relating to advance refundings, long-term working capital financings, hedges, investments, and grants among other things.

A tax reform plan released by Rep. Jim Renacci, R-Ohio, would replace the corporate income tax with a consumption tax and lower individual tax rates while maintaining the tax-exempt status of municipal bonds.

The House Republican blueprint for tax reform introduced last month would result in a 9.1% higher GDP over the long term, 7.7% higher wages and 1.7 million more full-time equivalent jobs, the Tax Foundation said on Tuesday.