IRS' Proposed Changes Would Limit Transparency on Tax Exempt Bonds
Read Good Jobs New York and Good Jobs First's testimony to the IRS.
Read about other organizations opposed to the new IRS Proposal.
Read the Good Jobs First press release regarding the upcoming IRS hearing.
Under the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, and subsequently the Tax Reform Act of 1986, all localities must hold a public hearing before issuing triple (local, state and federal) tax-free bonds for private-sector projects. Those eligible for these bonds, which carry below-market interest rates, include some manufacturers (through Industrial Revenue Bonds), housing developers, nonprofit organizations (including hospitals), airports, and even some Wal-Marts, among others. We’ve even seen a few financial firms benefit in New York City, mostly under the post-9/11 Liberty Bond Program.
The IRS’ proposed changes would:
1) Decrease from two weeks to one the amount of time the public has to research a project and prepare testimony in support or opposition.
2) Allow localities to proceed with no hearing at all if there are no “timely requests” to participate.
3) Limit the information now made publicly available prior to a hearing by allowing for more general project descriptions.
The IRS will be holding a hearing on the proposal at 10 AM on Monday,
January 26, in the IRS auditorium, 1111 Constitution Avenue, NW,
Washington, DC. Contact GJNY
for more Information.