Bond Rebate Services

In today’s world of tax-exempt financings, issuers and trustees must concern themselves with a myriad of legal and tax issues that require sound advice from qualified professionals. Some of the often overlooked, yet critical, areas of tax compliance with respect to tax-exempt bonds are the arbitrage and rebate provisions under the Internal Revenue Code.

Simply stated, these rules require the issuer to rebate to the Federal government any investment earnings in excess of the bond yield paid. Unfortunately, the simplicity usually stops there and a complex set of rules (developed over 30 years) creates the maze through which a bond issuer or trustee must find their way to determine whether a rebate liability exists.

Our service goes well beyond the mere number crunching. As part of our firm’s Tax Department, we utilize the expertise of tax professionals to analyze each client’s bond issue in order to properly interpret and apply the arbitrage provisions. Furthermore, we can assist clients and their bond counsel in any planning opportunities that may be available when bonds are issued. Our goal is to provide value to our clients beyond the mere calculation of the rebate liability.