WASHINGTON -- The Internal Revenue Service is discovering that some 501(c)(3) colleges and universities are lax in making sure campus facilities financed with tax-exempt bonds do not violate tax law restrictions on private use, an IRS official said Friday.

"In the college and university area what we are seeing is perhaps a tendency for organizations not to pay too close attention to use of the bond proceeds," Marcus Owens, the director of the IRS' exempt organizations division, told a joint meeting of the American Law Institute and American Bar Association.

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