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Rebate in the New Millennium  


Author:  Linda B. Schakel.


Source: Volume 21, Number 04, Winter 2000 , pp.123-127(5)




Municipal Finance Journal

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Abstract: 

The general requirement that issuers of tax-exempt bonds rebate to the U.S. Treasury Department all arbitrage earned with respect to proceeds of the tax-exempt bonds was first imposed on a limited category of tax-exempt bonds in 1984. In 1986, Congress extended the requirement to all tax-exempt bonds, including so-called governmental bonds issued for public projects. In this column, tax attorney Linda B. Schakel reviews the current status of arbitrage rebate including proposed legislation for rebate relief, and IRS safe harbor guidelines for broker commissions.

Keywords: Arbitrage compliance survey; escrow security “yield burning” settlement; “small issuer” exception

Affiliations:  1: Ballard Spahr Andrews & Ingersoll, LLP.

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