The IRS has expressed concern that bonds are being issued at artificially high rates, and then being sold immediately at premiums.

11/19/2010 8:54 AM

The Internal Revenue Service is auditing a Build America Bond issued by Finney County, Kansas School District.  EMMA records show that the bonds were purchased at par by the underwriter and EMMA trade reports show sales as high as 104.97.  The IRS has expressed concern that bonds are being issued at artificially high rates, and then being sold immediately at premiums. 

 

http://www.gctelegram.com/news/USD-457-Board-11-16-10