IRS ruling on tax-exempt bonds being challenged
Thursday, July 17, 2008
Filed Under:
Business
|
Law
The
Agua Caliente Band of Cahuilla Indians of California is fighting the
Internal Revenue Service over tax-exempt bonds.
The IRS has been going after tribes for using bonds to finance projects such as hotels and golf courses. The agency claims the facilities don't qualify for a governmental tax exemption.
The Agua Caliente Band used $22.5 million in bonds to finance the Canyon South Golf Course in Palm Springs. The IRS issued a "proposed adverse determination" against the project last September, The Bond Buyer reported.
Congress has considered bills to ensure that tribes can issue tax-exempt bonds but none have become law.
Get the Story:
Calif. Tribe Appeals IRS Golf Ruling
(The Bond Buyer 7/17)
IRS Memo:
INTERNAL REVENUE SERVICE
NATIONAL OFFICE FIELD SERVICE ADVICE (August 12, 2002)
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