IRS Issue Snapshot: ‘Deep Discount’ on Sales of Exempt Facility Bonds (IRC §103)

Regulations governing the determination of the amount of imputed proceeds from original issue discount in the deep discount sale of exempt facility bonds and small issue bonds discussed in IRS issue snapshot released July 26. Original issue discount may affect compliance with the 95% expenditure requirement by adding imputed proceeds to the amount of net proceeds, the IRS noted. [IRS Issue Snapshot: “Deep Discount”: Effect on Exempt Facility Bonds Compliance]

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