Sample Client List - PIC

  • The Art Institute of Chicago
  • Ithaca College
    New York
  • Rider University
    New Jersey
  • Salem Hospital
  • Pacific Retirement Services
  • California Institute of Technology
  • El Camino Hospital
  • St. Charles Health Care
  • Long Island University
    New York
  • Kauai County
  • Redlands Community Hospital
  • Santa Clara University
  • Centenary College
    New Jersey
  • City and County of Honolulu
  • Front Porch
  • Performing Arts Center of Los Angeles County
  • U.S. Tennis Association
    New York
  • Boston Medical Center
  • Samaritan Health Services
  • New Jersey Educational Facilities Authority
    New Jersey
  • Chapman University
  • Methodist Hospital of Southern California


PIC Resources


Post-Issuance Tax Compliance

The IRS tax-exempt bond office has stated that post-issuance tax compliance will be among its highest priorities in the coming years and has sharpened its focus to address many aspects of post-issuance tax compliance of tax-exempt bonds. Such efforts include (i) the distribution of several hundred questionnaires to 501(c)(3) borrowers and governmental issuers of tax-exempt bonds inquiring as to the scope and extent of post-issuance compliance practices and the date of adoption of written post-issuance tax policies, (ii) annual reporting requirements for nonprofit organizations in the form of IRS Schedule-K (Form 990) which requires annual private use calculations, (iii) audits of tax-exempt bonds (including physical examination of the bond financed facilities), and (iv) enhanced information gathering through the IRS Form 8038.


In 2012 representatives of the IRS indicated that audits of Schedule-K returns for nonprofit organizations will commence in the near future. In the event of an IRS bond audit or a Schedule-K audit, it will be necessary for borrowers to provide clear and convincing information to support their Schedule-K reporting.

The regulatory structure for greater scrutiny is clearly in place, calling for more tax-exempt debt issuer and borrower focus on matters of post-issuance tax compliance in order to preserve the tax-exempt status of outstanding bonds. Meeting these new requirements increases the need for issuers and nonprofit corporations to implement rigorous post-issuance compliance programs.

What Should Your Organization Do To Be Prepared?[more]

Issuers and borrowers of tax-exempt debt that implement a comprehensive post-issuance tax compliance program will be in a strong position to defend their position in the event of IRS scrutiny or an audit in a cost-effective manner. Four broad actions are vital to compliance:

  1. Establish written policies and procedures relating to post-issuance tax compliance.
  2. Calculate accurate percentage of private business use on all facilities financed with tax-exempt bonds.
  3. Retain records for all tax-exempt bond issues.
  4. Consider professional post-issuance tax compliance assistance.

How BLX Can Help[more]

To assist issuers and nonprofit corporations in meeting ongoing post-issuance compliance responsibilities, BLX offers a wide range of post-issuance services, including:

  • Comprehensive review of the expenditure and use of bond proceeds
  • Periodic review of all contracts, leases and arrangements with private parties relating to the use of bond financed facilities
  • Annual private business use review and calculation
  • Assistance with and completion of IRS Schedule-K, applicable to nonprofit corporations
  • Development and review of written post-issuance tax compliance policies and procedures

With more than 30 finance professionals dedicated to financial and consultative services in five offices nationwide, BLX is well qualified to assist and guide issuers and borrowers with all elements of post issuance compliance. We do not offer legal services but our parent firm, Orrick, Herrington & Sutcliffe LLP, can assist.

Please contact us to request further information:

Alan Bond, Managing Director
212 506 5275


How Orrick Can Help

Our parent firm, Orrick, Herrington & Sutcliffe LLP provides legal services. Please contact any of the following individuals for assistance:

Ed Oswald, Partner | Orrick, Herrington & Sutcliffe LLP
202 339 8438
1152 15th Street, NW
Washington D.C. 20005

Richard Chirls, Partner | Orrick, Herrington & Sutcliffe LLP
212 506 5250
51 West 52nd Street
New York, NY 10019

Roger Davis, Partner | Orrick, Herrington & Sutcliffe LLP
415 773 5758
405 Howard Street
San Francisco, CA 94105

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