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FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. March 25, 2004JS-1261 Remedial Actions for Qualified Zone Academy Bonds Today the Treasury Department and the Internal Revenue Service issued proposed regulations that specify remedial actions that may be taken by issuers of Qualified Zone Academy Bonds (QZABs) to cure an unanticipated failure to use the QZABs for a qualified purpose. “These new proposed regulations will provide certainty to issuers and holders of QZABs, as well as other industry participants,” stated Acting Treasury Assistant Secretary for Tax Policy Greg Jenner. The proposed regulations provide guidance regarding whether the proceeds of QZABs have been used for a qualifying purpose. The proposed regulations also set forth remedial actions than may be taken to cure an unanticipated failure to use a QZAB for a qualifying purpose. If the issuer takes one of these prescribed remedial actions after an unanticipated failure to use a QZAB for a qualifying purpose, the QZAB holder will continue to receive tax credits. Issuers may apply the proposed regulations to QZABs until the regulations are finalized.
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