Public Finance Advisory: Charitable Borrowers Must Track Private Use of Bond-Financed Facilities
1/4/2006
The Internal Revenue Service (IRS) has recently announced that it intends to increase significantly the number of its audits which target "post-issuance compliance in the charitable finance sector."
This publication discusses the increased level of scrutiny and new regulations and how they together underscore the need for non-profit institutions which have tax-exempt bond debt to establish an effective program to monitor continuously the "private use" at their bond-financed facilities and to keep adequate records of such use.
