Past experience with and basic knowledge of public-sector debt management
This training is intended to assist issuers of municipal securities with understanding the arbitrage rules within federal tax law.
Governments that issue debt must continue their diligence and work post-issuance to ensure compliance with the Internal Revenue Service's (IRS) arbitrage rules. The interest rate environment over the past few years has led to negative arbitrage conditions, and governments need to understand how this should be built into their calculations. In addition, governments need to prepare for scenarios where positive arbitrage may be found again. A summary of tax rules on how arbitrage is calculated, why new federal tax rules on the issue price of bonds are important, and what to do if you find yourself audited for possible arbitrage violations will also be covered. Speakers will include industry experts and leading practitioners.
Those completing this seminar will be able to:
- Understand the basics of federal arbitrage rules and arbitrage rebate
- Learn what a government needs to do to calculate arbitrage, including negative arbitrage, for each bond transaction.
- Develop an understanding for new IRS issue price regulations and how that impacts arbitrage calculations
- Determine whether arbitrage monitoring can or should be done internally or with the assistance of outside professionals.
- Understand what to do if they are contacted or audited by the IRS relating to arbitrage rules.