IRS Issues Proposed Regulations On Public Approval Requirements For Private Activity Bonds

摘要

The Internal Revenue Service has issued proposed regulations on the public approval requirements for tax-exempt private activity bonds, including special provisions for mortgage revenue bonds. The regulations were published in the September 9 Federal Register, and comments are due December 8. In addition, outlines of topics to be discussed at a public hearing scheduled for January 26 must be received by December 29. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) established public approval requirements for tax-exempt industrial development bonds, and the requirements were extended to all tax-exempt private activity bonds by the Tax Reform Act of 1986. The IRS issued temporary regulations to implement the TEFRA public approval requirements in 1983, and the proposed rules for private activity bonds would generally build on those regulations. The 1983 rules will remain in effect to the extent that they are not inconsistent with the 1986 act, subsequent law, or the proposed regulations.