IRS Issue Price Definition for Tax-Exempt Bonds

3/1/2017 10:03 AM

Internal Revenue Bulletin: 2017-2, issued January 9, 2017

The IRS issued final regulations related to the issue price of tax-exempt bond for purposes of arbitrage investment restrictions. The regulations outline three options for determining the issue price of tax-exempt bonds, allow the issuer to select among the options, and also require that the issuer identify the option used for pricing on or before the bonds are sold. The new rules will be effective for bonds sold on or after June 7, 2017.

Click here to read the Internal Revenue Service Bulletin.