IRS Issues Guidance on Remedial Actions for Tax-Advantaged Bonds

On April 11, 2018, the Internal Revenue Service published Revenue Procedure 2018-26 providing issuers with certain additional remedial actions to preserve the tax-advantaged status of their bonds when a violation of the  tax compliance rules occurs. Notably, Rev. Proc. 2018-26 provides issuers of tax-credit bonds and direct pay bonds with remedial action options including parameters for the “redemption and defeasance of bonds” as well as for the “alternative use of disposition proceeds”. For more information please contact our tax department:

William Henn: 410-843-3520 and

Solomon Cadle: 410-843-3509 and

Taylor Lloyd: 410-843-3528 and