Problem-Free Post-Issuance Compliance for
Municipal Bond Issuers and Borrowers
IRS guidance recommends the issuer or borrower appoint a bond compliance officer (BCO): a single point-of-contact responsible for coordinating post-issuance compliance for the organization. We work closely with the BCO to implement the policy.
IRS guidance recommends that the bond compliance officer and others involved in the administration of the policy participate in periodic training to remain current on trends in post-issuance compliance and to fully understand their duties.
IRS guidance recommends the bond compliance officer maintain a bond file for each tax-advantaged transaction. More than just a transcript, these records substantiate compliance with the policy, tax compliance agreements and continuing disclosure agreements.
IRS guidance recommends that issuers and borrowers have a process in place to voluntarily report to the IRS events of non-compliance that cannot be cured in such a way or in time so as to avoid potentially impairing the tax-advantaged status of the bonds.
IRS guidance recommends the issuer or borrower undertake due diligence at routine intervals to ensure the conditions that led to bond counsel issuing a tax-exempt opinion at bond settlement remain unchanged over the life of the tax-advantaged bond transaction.
IRS guidance recommends the issuer or borrower have procedures and processes in place to identify, as early as possible, potential non-compliance with the policy, tax compliance agreements or continuing disclosure agreements.
Don't have a tax-advantaged bond post-issuance compliance? Or maybe you have one but it's outdated? Or maybe your written policies and procedures don't match your implementation process? We can help draft new or amended policies to fit your needs.
We recognize that issuers and borrowers often use costs of issuance budgets built into bond issues to pay for the costs associated with a bond financing. Our fee structure recognizes this approach; the costs of MuniVault® can also be included in the costs of issuance budget.