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Post-issuance tax compliance services
By Mitch Rapaport
 
For issuers and nonprofit borrowers, satisfying the post-issuance compliance obligations of each tax-exempt financing is a challenging but critical function. Failure to maintain compliance may result in time-consuming and expensive audits, substantial settlements, or the bonds being declared taxable. Over the past couple of years, the Internal Revenue Service has increased their enforcement of post-issuance compliance. This ongoing initiative has resulted in published guidance and new filing/reporting requirements.
 
Nixon Peabody, in partnership with our affiliate Omnicap, offers a range of services to assist issuers and nonprofit borrowers with understanding and satisfying these requirements. These services, which can be packaged to create a comprehensive compliance program or offered individually, include:
  • Certifying proceeds have been spent in compliance with IRS and transaction covenant requirements
  • Responding to an IRS questionnaire or inquiry
  • Reporting and monitoring private business use
  • Assisting nonprofits with the completion of Schedule K
  • Calculating rebate and yield restriction liability
  • Developing or reviewing record retention policies

For more information, please contact your Nixon Peabody attorney or:

For additional background, please click here.

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