Government Finance Officers Assn's safe-harbor proposalThe Government Finance Officers Assn in cooperation with the National Assn of Counties have developed an arbitrage rebate safe-harbor proposal with the aim of simplifying arbitrage compliance for municipal bond providers. The proposed safe harbor does not consider an issuer of municipal tax-exempt bonds to have gained arbitrage in line with the rebate requirements if he meets six criteria. These include the provision that the bonds are exempt from the state-by-state volume cap and the issue is categorized as a new money issue.
Tax simplification 101: an arbitrage rebate safe-harbor proposal.
Tax simplification is not a new idea, but it is one that is getting more attention as Congress and the administration look for ways to ease administrative burdens on the beleaguered Internal Revenue Service (IRS) and taxpayers. In a recent letter to the U.S. Treasury Department responding to a request for help in identifying areas of the federal income tax code that could be simplified, GFOA unveiled a proposal it developed in cooperation with the National Association of Counties (NACo) calling for a new ...