IRS Extends Deadline to Issue Tribal Economic Development Bonds Under First Allocation
Internal Revenue Service (“IRS”) Announcement 2010-88 provides Indian tribal governments that received allocations from the first tranche (“First Allocation”) of national bond volume limitation authority (“volume cap”) for tribal economic development bonds ("Tribal Economic Development Bonds") an automatic extension from December 31, 2010 to June 30, 2011, to issue Tribal Economic Development Bonds.
Notice 2009-51, in part, provides guidance on application requirements, deadlines, and request forms for volume cap allocations to issue Tribal Economic Development Bonds. The Notice provides for the forfeiture of all or a part of a volume cap allocation received by an Indian tribal government from the First Allocation if bonds are not issued pursuant to such allocation by December 31, 2010. This Announcement extends the deadline to June 30, 2011 (subject to certain exceptions described in the Announcement).
In addition, the Announcement provides for an additional extension to December 31, 2011 for Indian tribal governments that received volume cap allocations from the First Allocation that submit written requests by March 30, 2011. Each written request must comply with the requirements described in the Announcement. Indian tribal governments that submit written requests in compliance with the requirements described in the Announcement are expected to receive confirmation of the additional extension by May 31, 2011.
The Announcement does not affect the deadline of December 31, 2011 to issue Tribal Economic Development Bonds pursuant to the volume cap allocations from the second tranche for Tribal Economic Development Bonds. In addition, the Announcement does not affect the deadline to issue Tribal Economic Development Bonds as build America bonds (“BABs”), which are required under section 54AA to be issued before January 1, 2011.
View IRS Announcement 2010-88