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Post-Sale Compliance

To maintain tax exemption on your bonds, it is important to comply with IRS rules. Failure to comply with IRS rules may result in loss of tax exemption or penalty and interest payable. The following link provides information on what issues the IRS looks at in determining post-issuance compliance.

TEB Post-Issuance Compliance: Some Basic Concepts

Some of the issues to be aware of in post-sale compliance include the following:

  • Arbitrage and Rebate Calculations
  • Spend Down Requirements for Construction Proceeds
  • Calculation of “Private Use” for Tax-Exempt Bond Financed Facilities
  • Allowable Use of Bond Proceeds

The Minnesota Higher Education Facilities Authority can assist borrowers with monitoring and calculating post-sale compliance matters and direct borrowers to other resources as necessary.