A number of municipal entities have been receiving a solicitation to purchase a post-issuance debt policy and procedure manual. The advertisement suggests that having such a policy is required by the Internal Revenue Service (the “IRS”). However:
- Post Issuance Compliance Policies are available for free from K&L Gates – you do not need to pay third parties for material your bond counsel has already prepared for you.
- Adopting a policy is not required by the IRS (but is certainly advisable – as discussed below).
As you know, Federal tax law requires the filing of an IRS form (8038-G) by a governmental issuer in connection with its tax-exempt Bonds. Form 8038-G is an informational form. The Form 8038-G was recently amended by the IRS to include questions inquiring whether the issuer has adopted written procedures to ensure compliance with federal tax law following the issuance of the bonds and during the life of the bond issue.
Please see full alert below for more information.
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