Spilman Alert - Update from IRS - Tax Exempt Bonds: Private Business Use Issue Snapshots

December 7, 2018

Update from IRS - Tax Exempt Bonds: Private Business Use Issue Snapshots

On December 4, the Internal Revenue Service released two new "Issue Snapshots" regarding Private Business Use. The Issue Snapshots summarize the rules for determining whether federal government use and management contracts related to bond-financed facilities cause Private Business use.

While the IRS says Issue Snapshots are not "official pronouncements of law or directives," they do provide an overview of the analysis and resources related to the particular issue discussed for IRS employees. Additionally, they include audit tips. The hyperlinks to the new Issue Snapshots are provided below.

Private Business Use - Federal Use of Tax-Exempt Financed Prison Facilities - Discusses rules that apply to federal government use of tax-exempt bond financed facilities and when that use may be private business use.

Private Business Use - Management Contracts - Discusses rules that apply to management contracts for tax-exempt bond financed facilities and when these contracts may be private business use.

If you have any questions, please contact us.

Amy King Condaras, Co-Chair, Public Finance Group

304.340.3781

[email protected]

and

Carrie J. Cecil, Co-Chair, Public Finance Group

304.340.3880

[email protected]

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Responsible Attorney: Michael J. Basile, 800-967-8251