TEB Current Developments
Notice 2010-10 (Tax-Exempt Bonds in Certain Disaster Areas)
This Notice provides guidance on the tax-exempt bond provisions for the Midwestern and Hurricane Ike disaster areas under the Heartland Disaster Tax Relief Act of 2008, Subtitle A of Title VII of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Division C of Public Law 110-343, 122 Stat. 3765, enacted on October 3, 2008) (Act) and § 1400N(a) of the Internal Revenue Code (Code), as modified by the Act. This Notice also provides guidance on reimbursement expenditures made with proceeds of tax-exempt bonds issued for Midwestern and Hurricane Ike disaster areas and tax-exempt “Qualified Gulf Opportunity Zone Bonds” issued under § 1400N(a) of the Code. (Except as noted, section references in this Notice are to the Code and the Income Tax Regulations.)
Notice 2010-07 (Extension of Temporary Rules Allowing Governmental Issuers to Purchase and Hold Their Own Tax-Exempt Bonds)
This Notice modifies Notice 2008-88, 2008-42 I.R.B. 933 (October 20, 2008) to extend the expiration dates from December 31, 2009 to December 31, 2010 of certain temporary rules allowing state and local governmental issuers to purchase and hold their own tax-exempt bonds under special reissuance standards for tax-exempt bonds. The intent of the extensions of these temporary rules is to facilitate liquidity and stability in the tax-exempt bond market in recognition of some continuing credit enhancement and liquidity constraints in this market.
Notice 2010-05 (Arbitrage Treatment of Certain Guarantee Funds)
This Notice describes proposed rules that the Internal Revenue Service (IRS) and the Department of the Treasury expect to issue regarding whether certain perpetual trust funds created and controlled by States that are pledged as credit enhancement to guarantee tax-exempt bonds will be treated as replacement proceeds of the guaranteed bonds for purposes of the arbitrage investment restrictions on tax-exempt bonds under § 148 of the Internal Revenue Code.
IRS Launches Compliance Check on Direct Pay Build America Bonds
Original article - superceded by article here.