Last week the Internal Revenue Service notified the Clark County School District that its $338.4 million bond issue in 2015 will remain tax exempt, closing an audit first disclosed in April.
According to a notice listed in EMMA, the district “received a letter informing the issuer that the IRS ‘completed the examination for the issue and dates above and closed the examination with no change.'”
The ruling represents the best possible outcome for an issuer facing a grilling from the IRS. “A no change letter means the audit has been closed,” said Matthias Edrich, a tax partner at Kutak Rock LLP there. “The IRS did not find anything in the in the bond issue that will cause the bonds to become taxable. And once the no change letter is given, the audit closes, and there’s no further examination or inquiry.”
Kutak Rock
Examinations usually begin with an IRS request for more…
