Treasury Inspector General for Tax Administration
March 31, 2010
TIGTA - 2010-07
Contact: Karen Kraushaar
WASHINGTON -- The Treasury Inspector General for Tax Administration (TIGTA) today publicly released its review of the Internal Revenue Service's efforts to help explain how to issue tax-exempt and tax credit bonds authorized by the American Recovery and Reinvestment Act of 2009 (Recovery Act).
The Recovery Act authorized new and expanded bond financing subsidies of more than $57.8 billion to help stimulate State and local economies. TIGTA examined whether the initial guidance published by the IRS was adequate to allow issuance of tax-exempt and tax credit bonds in accordance with the Recovery Act.
TIGTA found that the initial guidance published by the IRS in the form of notices was complete, accurate, and consistent with the tax-exempt and tax credit bond requirements of the Recovery Act.
"The Recovery Act enacted the first substantive legislative changes for tax-exempt and tax credit bonds in nearly 20 years," said J. Russell George, the Treasury Inspector General for Tax Administration. "The IRS quickly published guidance to help bond issuers understand how to issue tax-exempt and tax credit bonds as provided for by the Act."
In addition to these guidance documents, IRS management plans to update expiring Recovery Act guidance and provide supplemental information in the form of published guidance by June 30, 2010.
TIGTA did not make any recommendations in this report. However, key IRS management officials reviewed it prior to issuance and agreed with the facts and conclusions presented.
To view the report, including the scope and methodology, go to: http://www.treas.gov/tigta/auditreports/2010reports/201011035fr.pdf.
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