38th Bond Attorneys’ Workshop

Private Activity Tests: Real World Challenges

Application of the private activity rules presented in the Internal Revenue Code and the applicable Treasury Regulations often does not translate well to the “real world” scenarios encountered by issuers (and their bond counsel).

This panel will address some of these challenges, both pre-issuance and post-issuance, and will explore how various bond counsel and the Internal Revenue Service have applied guidance to deal with them.
This panel will assume that the audience is well-acquainted with the private activity bond tests. For those who are not familiar with the application of the private activity tests or who would like a refresher on the basics, please consider attending the Basic Issue Spotting panel in advance or instead of this panel.

Post-Issuance Tax Compliance

A discussion of how post-issuance compliance procedures and self-help remedies can be put to use for the benefit and protection of issuers and conduit borrowers, with insight from issuer and IRS representatives regarding best practices, priorities and pitfalls. The panel will cover the concerns of small and large issuers of governmental bonds, as well as conduit issuers and borrowers, as they establish and implement written procedures for tax compliance and address issues such as assigning responsibilities and establishing training. Self-help remedies will also be addressed, with discussion of remedial action and reallocation.