IRS Invites Public to Comment on TEDB Allocation Process and Also Announces a 3-Month Extension to Issue Unexpired TEDB Allocations
In Announcement 2011-71, the Internal Revenue Service (“IRS”) announces that it is seeking public comment from Indian tribal governments and other interested members of the public on the reallocation of available amounts of national bond volume limitation authority (“volume cap”) for tribal economic development bonds (“Tribal Economic Development Bonds”) in order to facilitate issuance of such bonds by Indian tribal governments. These available amounts include amounts that were previously allocated and have been, or subsequently are, forfeited under Notice 2009-51 and Announcement 2010-88. The public comment deadline is December 12, 2011.
The IRS is considering potential methods of reallocating volume cap that would use an application process and criteria similar to those used to allocate volume cap under Notice 2009-51. However, in response to feedback from the public generally and Indian tribal governments specifically and to facilitate availability of volume cap for projects, the IRS is considering improvements to the allocation process. The IRS is seeking input on the processes and criteria to be included in a method for reallocation. The announcement provides instructions for submission of comments by mail, hand delivery, or electronic submission.
The IRS will hold multiple telephone consultations during the period commencing on the publication of the announcement and ending on the public comment deadline. The dates and times of those telephone consultations are:
- November 17, 2011, 10 - 11 a.m. (Eastern Time)
- December 7, 2011, 2 - 3 p.m. (Eastern Time)
The telephone consultations can be accessed by dialing: 1-888- 285-4585 and then entering Participant Code: 775860. Each call can accommodate 200 participants. After the consultations are completed and the comments are received and considered, the IRS expects to provide information about the determined process through published guidance.
In addition, Announcement 2011-71 provides a three-month optional extension from December 31, 2011, to March 31, 2012, for Indian tribal governments that received unexpired allocations of volume cap for Tribal Economic Development Bonds and submit written requests by November 30, 2011. An Indian tribal government may submit such a written request with respect to an allocation of volume cap from the first tranche if the Indian tribal government received an extension of the administrative deadline to issue bonds pursuant to such allocation to December 31, 2011 (pursuant to the process described in Announcement 2010-88) or with respect to an allocation of volume cap from the second tranche.
Each written request for an optional three-month extension must comply with the requirements described in Announcement 2011-71. Indian tribal governments that submit written requests in compliance with the requirements described in the announcement by November 30, 2011, are expected to receive confirmation of the extension by December 31, 2011. Indian tribal governments that are eligible to request the optional extension described in Announcement 2011-71 that do not submit a request will be subject to the existing deadline of December 31, 2011, to issue Tribal Economic Development Bonds pursuant to their allocations.