Our arbitrage service specialists are expertly trained to make the complex, bureaucratic process of doing a yield restriction calculation easier, more efficient, and more human than if it were performed by any one of our corporate competitors.
Spending Exception Calculations: Certain bond issuers are allowed a spending exemption. This allows them to spend all of the excess bond investment proceeds as long as they do it on a schedule specified by the IRS.
Our experts at ACS are trained to determine whether or not you may be eligible for a spending exemption, which would enable you to keep your bondholders happy by maximizing their return on investments while minimizing — if not eliminating — the need for any rebates. Contact us today to speak with one of our experts about conducting your own spending exemption calculation.
Assistance With Form s T, R, G In addition to our calculation services, ACS also offers decades of experience assisting clients in preparing and filing Form s T, R, G , submitting arbitrage payments to the federal government, or requesting a refund of overpayment from the IRS.
Handling these on your own can be a major hassle. Mistakes can be made. Allow us to put your mind at ease by knowing your paperwork is being handled by the experts at ACS. Advantages of Working With Arbitrage Compliance Specialists The process of navigating your tax-exempt bond issue from start to finish can be extremely complicated and laborious.
That is why you should absolutely seek professional help from an arbitrage compliance specialist. It is in your best interest to have a team behind you while pursuing your ongoing compliance with federal regulatory requirements and simultaneously attempting to save as much money as possible.
If you are a municipal district, a school district, or any other such entity, ACS will provide you with all the support you need to gain the peace of mind that comes with knowing you are not in danger of losing your tax-exempt status. Hopefully, in the course of debt management, treasurers will find themselves earning yield on their loan proceeds.
In her segment, she offered a helpful introduction to arbitrage rebate and yield restriction payments. You can watch the video for a more complete breakdown, or continue reading for a brief synopsis. To complete projects, local governments can borrow funds at tax-exempt rates, though this flexibility does come with certain expectations and compliance requirements. First and foremost, the IRS expects borrowers to spend loan proceeds in a timely manner, but sometimes, life gets in the way.
Project delays happen. Sometimes a local government can find itself holding funds for a considerable amount of time and earning more yield than they expected. Earning more money on a tax-exempt loan than is allowed under IRS rules is a form of arbitrage. This circumstance can arise when borrowing rates generally longer term rates are low and reinvestment rates generally shorter term are higher.
Arbitrage rebates should be calculated in installment periods no longer than every five years over the life of the loan. Arbitrage refers to the excess interest income that issuers may earn through investing tax-exempt bond proceeds in higher yielding taxable securities.
Section of the Internal Revenue Code of , referred to as the Arbitrage Regulations, permits a tax-exempt issuer to earn arbitrage only in specified circumstances, and in most cases requires any arbitrage profit to be paid to the U. Compliance with complex arbitrage rebate rules can divert the staff of tax-exempt bond issuers from important organizational responsibilities.
Incorrect calculations can jeopardize the outcome of an IRS audit. Click here to view current prices. Click here to view the Mun-Ease Brochure. Other Newsletters From the main menu, click the News menu option to view older newletters We've moved! Our new address is: Prescient Software jrd, Inc. Click here for more info.
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