WASHINGTON - The Internal Revenue Service has settled two key arbitrage issues that affect detachable call option bonds, but still must resolve a crucial reissuance question, federal officials and bond lawyers said last week.

The arbitrage issues were settled in the arbitrage rules published in June and the subsequent technical corrections issued in August. The rules and corrections became effective for bonds issued after Aug. 14 but also could be applied retroactively to outstanding bonds.

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.