IRS to Examine Advance Refundings for Arbitrage Compliance.

PositionBrief Article

Troubled by reports that issuers are earning excessive arbitrage by not converting advance refunding escrows into zero-interest securities, the Internal Revenue Service is preparing to launch a random examination to determine the extent of the problem. The IRS plans to send letters to 25 randomly selected issuers nationwide to ascertain whether or not they complied with applicable tax laws in advance refunding debt issues. Officials believe that most cases of noncompliance are unintentional, often resulting from the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT