WASHINGTON -- An Internal Revenue Service memorandum that was recently sent to a taxpayer in Minnesota has distressed several bond lawyers and lead a few of them to halt tax increment revenue bond-related financings.

In the technical advice memorandum, which has not yet been published and does not identify the tax-payer, which is a company, the IRS concluded that the tax increment revenue bonds that helped finance the development of its industrial facility are taxable because of an underlying redevelopment contract.

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