WASHINGTON -- An organization seeking 501(c)(3) status that is planning to issue health-care bond should be scrutinized to ensure that the nonprofit group will be operated for public rather than private purposes and that bonds issued on its behalf will qualify for tax exemption, the Internal Revenue Service has told its field agents in a recently published guidance.

Agents also were told to carefully investigate the health-care bond programs of existing 501(c)(3) organizations that are under audit.

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