WASHINGTON -- Most of the technical corrections to the arbitrage rebate rules issued by the Internal Revenue Service last week are effective for bonds sold after June 6, a Treasury official said Friday.
Most of the corrections were issued in temporary and proposed from which means the June 6 date applies to them, said Mitchell Rapaport, the Treasury's attorney-advisor for tax-exempt bonds. The rules are also subject to public comment and possible revision, with comments due July 11, Rapaport said at a bond lawyers meeting.
A few of the technical corrections were issued in final form, which means they are effective immediately, and one was issued in proposed form.
In issuing the corrections last week, the IRS said it would give issuers the option of applying the technical corrections to any bonds that are subject to the final arbitrage rules that were issued last June.