Tax Policy & Administration: Improvements for More Effective Tax-Exempt Bond Oversight
Discusses: the IRS' role in ensuring compliance with tax-exempt bond provisions in the Internal Revenue Code & how its efforts can be improved, & (2) policy changes that could enhance the IRS' ability to increase compliance with these provisions.
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Page 38 - Managing 1RS: Important Strides Forward Since 1988 but More Needs to Be Done (GAO/GGD-91-74, Apr. 29,1991).
Page 64 - bonds. Bonds must generally be issued in registered form. 'These tables are based on the table entitled "Summary of Tax-Exempt Bond Provisions" included in Tax Policy: Internal Revenue Code Provisions Related to Tax-Exempt Bonds (GAO/GGD-91-124FS, Sept 27,1991).
Page 64 - through 1.11 provide summary explanations of the major subsections related to the 11 sections of the Internal Revenue Code (me) that comprise the primary statutory provisions on tax-exempt bonds (sections 103 and 141 through 150). 1 Because some related tax-exempt bond provisions are not grouped together but interspersed throughout the tax-exempt bond sections of the
Page 59 - Because the Internal Revenue Code is so complicated in the sections addressing tax-exempt finance, state and local governments cannot comply without hiring a variety of experts, much of the cost of which could be reduced with tax simplification. The result would be that more of the benefits of tax-exempt financing would go into public facilities.
Page 8 - from revealing any information that could directly or indirectly identify any parties to a noncomplying tax-exempt bond transaction. If information about tax-exempt bond enforcement actions could be released, such as information on the types of bonds IRS has found to be abusive or the identities of participants in abusive bonds, the market participants that
Page 41 - has been working to set agencywide goals, establish priorities, guide budget decisions, and measure the progress of its various organizations toward achieving well-defined objectives. Although they are beginning to consider how to improve ms' tax-exempt bond efforts, IRS officials have not developed and executed a plan to guide these efforts or to help direct
Page 27 - relies to a large extent on the bond counsel's opinion that accompanies each tax-exempt bond. This opinion addresses compliance with federal laws at the time of bond issuance. Such an opinion is intended to give investors greater assurance that the bond's interest will be exempt from federal taxation. Reliance on counsel's opinion may provide
Page 23 - Office of Chief Counsel to obtain information on abuses involved and examples of closing agreements. We selected for review (1) cases with more recent closing dates to reflect IRS' more recent activities and (2) at least one case for each tax-exempt bond revenue ruling where closing agreements had been reached. We obtained and reviewed
Page 47 - officials concluded that closing agreements typically resulted in settlements that represented only a small fraction of the arbitrage profits earned, which in turn were often of much smaller amounts than lost tax revenues. Because they typically are much smaller than the arbitrage gained, closing agreements provided little incentive to comply. According to an
Page 17 - Treasury delegates most responsibilities for administering and overseeing federal tax-exempt bond provisions to the Internal Revenue Service (ms). Tax-exempt bond regulations, which are issued by Treasury, usually are developed jointly with ms. In addition, ms issues revenue rulings and letter rulings related to tax-exempt bonds. The revenue rulings interpret tax-exempt bond statutes and regulations for taxpayers,