Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has provided the maximum face amount of qualified zone academy bonds (QZABs) that can be issued for each state for calendar years 2008 and 2009. Allocations for the District of Columbia and the possessions of the United States are also included.

  Pending the release of future administrative or regulatory guidance, the IRS has also provided interim guidance for QZABs issued after October 3, 2008. The maximum maturity and the credit rate are determined as of the date that there is a binding, written contract for the sale or exchange of the bond. The applicable maximum maturity and the QZAB credit rate are published for that date by the Bureau of Public Debt. Methods and procedures for determining the credit rates were provided in Notice 2009-15, I.R.B. 2009-6, 449. The interim guidance also provides that the permitted sinking fund yield is determined under Code Sec. 54A(d)(5)( by using a rate equal to 110 percent of the long-term adjusted, applicable federal rate ("AFR"), compounded semiannually, for the month in which the bond is sold.

Notice 2009-30, 2009FED ¶46,316

Other References:

 
Code Sec. 54E

  CCH Reference - 2009FED ¶4916.035

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 55,810