WASHINGTON -- The IRS announced yesterday that certain provisions of its final original issue discount rules will not apply to short-term tax-exempt notes until it has a chance to study a potentially adverse effect of the provisions on these notes.

The IRS announcement, which was made in Notice 94-84, will affect about $10 billion of tax-exempt notes with maturities of one year or less that have been issued since April 4, the date the final original issue discount rules took effect, IRS officials said. Those estimates are based on statistics reported by The Bond Buyer, they said.

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