IRS ISSUES ADVICE MEMO ON CALIF. RDA DISSOLUTION

Friday, June 1, 2012 - 7:00AM

The Internal Revenue Service Office of the Chief Counsel today issued AM2012-004, an advice memo on how the dissolution of California’s redevelopment agencies (RDAs) affects tax-exempt and Build America Bonds previously issued by the agencies. In the memo, the IRS concludes that regardless of whether the bonds are recourse or nonrecourse, the change in obligator does not result in a reissuance of the bonds. Additionally, the IRS says the RDA successor agencies are entitled to claim the refundable credit allowed under section 6431.

Tune into the Tax Credit Tuesday podcast on June 5 to hear more about this memo.

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