WASHINGTON -- Treasury and Internal Revenue Service officials this week warned issuers unable to do legitimate tax-exempt bond reimbursements against trying to avoid requirements by selling taxable reimbursement debt and then refunding it with tax-exempts.

Bond firms and issuers promoting such deals claim they would be refunding rather than reimbursements and that reimbursement rules would not apply, several lawyers said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.