Tax Exempt Bonds Voluntary Compliance

Voluntary compliance includes post-issuance diligence and resolving noncompliance on a timely basis. This general information for issuers of tax-exempt, tax credit and direct pay bonds (tax-advantaged bonds) includes: 

• General post-issuance compliance responsibilities
• Self-correction of violations
• Voluntary Closing Agreement Program (TEB VCAP)
• Private letter rulings

• Post-Issuance Compliance
  General information on the post-issuance compliance responsibilities of issuers of tax-advantaged bonds. Issuers must be diligent in identifying and resolving noncompliance, on a timely basis, to preserve the preferential status of tax-advantaged bonds.
   
• Self-Correction
  General information on the availability of remedial action provisions under the Income Tax Regulations that issuers of tax-exempt bonds can use to resolve tax violations without the involvement of TEB.
   
• Private Letter Rulings
  Overview description of private letter rulings, including important distinctions between private letter rulings and closing agreements related to tax-advantaged bonds. Revenue Procedure 2016-1 provides formal guidance on the process for requesting private letter rulings.
   
• Voluntary Closing Agreement Program - how to apply
  Procedures for requesting a closing agreement to resolve violations of the federal tax laws applicable to tax-advantaged bonds
   
  • Model Closing Agreement - you must include this with your request
  • Notice 2008-31- Procedures for TEB VCAP
  • Form 14429, Tax Exempt Bonds Voluntary Closing Agreement Program Request
  • IRM section 7.2.3 covers TEB VCAP submissions and processing
  • Simplified VCAP Process for Issuers of Qualified 501(c)(3) Bonds (Announcement 2015-2)
     
• Voluntary Closing Agreement Program - streamlined resolution standards
  IRM sections on standardized resolutions to timely resolve violations of applicable federal tax laws.
   
  •  IRM section 7.2.3 - includes resolution standards under TEB VCAP
     
• Feedback on Tax Exempt Bonds Voluntary Compliance
  We invite issuers and other participants in the municipal bond industry to submit questions, comments and suggestions concerning our voluntary compliance programs.