A number of Build America Bond issuers are seeking voluntary closing agreements with the Internal Revenue Service to settle accidental violations of a de minimis premium rule, an IRS official told industry officials in Manhattan yesterday.
Speaking on a BAB panel at the Securities Industry and Financial Markets Association’s municipal bond summit, Clifford Gannett, the IRS’ tax-exempt bond office director, said the agency has received “some requests” from issuers seeking to enter the agreements, though he declined to say how many. He said “too few” of the cases have been finalized for him to discuss them. IRS rules require that at least three cases be closed before they can be publicly disclosed.
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