WASHINGTON - An Internal Revenue Service rule designed to prevent yield burning is unworkable and causing problems for some municipal issuers who want to invest bond proceeds in U.S. Treasuries, bond lawyers said this week.

The rule, which was included in allocation and accounting regulations that recently went into effect, aims to ensure that issuers investing in Treasuries take into account the fair market prices of those securities rather than artificially contrived prices that would lower their investment yield for rebate and yield restriction purposes.

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