IRS begins BAB audits

10/25/2010 1:11 PM

The IRS’s tax-exempt bond office has between 15 and 20 audits of Build America Bonds underway.  As part of the audit process, issuers are receiving a four-page document request, including questions about investors.  Of particular interest to bond attorneys: the IRS is looking for information regarding bonds purchased by or on behalf of the issuer, any related entity, or any pension plan in which the issuer’s employees participate.