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IRS to Examine Advance Refundings for Arbitrage Compliance.(Brief Article)

Government Finance Review

| October 01, 2001 | COPYRIGHT 2001 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Troubled by reports that issuers are earning excessive arbitrage by not converting advance refunding escrows into zero-interest securities, the Internal Revenue Service is preparing to launch a random examination to determine the extent of the problem. The IRS plans to send letters to 25 randomly selected issuers nationwide to ascertain whether or not they complied with applicable tax laws in advance refunding debt issues. Officials ...

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Source: HighBeam Research, IRS to Examine Advance Refundings for Arbitrage Compliance.(Brief...

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