WASHINGTON -- A revenue ruling issued last month by the Internal Revenue Service to crack down on bond deals involving bogus insurance covers similarly abusive transactions even if they are structured differently, a Treasury official said last week.

Revenue ruling 94-42, which is retroactive, was designed to quash bond deals in which the participants or an outside party use bogus insurance or some sort of security for the bonds to generate huge arbitrage profits, the official said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.