NABL in the News
An archive of public news articles which relate to NABL.
Coming Soon: Electronic BAB Subsidies
WASHINGTON — Issuers of direct-pay Build America Bonds will be able to receive their subsidy payments from the Treasury Department electronically beginning in 2010, a top Internal Revenue Service official said yesterday.
Clifford Gannett, the director of the IRS’ bond office, promised the bond community that BAB issuers will be able to opt into an electronic direct-deposit program next year, as an alternative to the current arrangement under which checks are mailed to issuers. He made his comments during a teleconference sponsored by the National Association of Bond Lawyers.
“I can guarantee you that one improvement will be the ability to have the payment transmitted by direct deposit — that will happen in the beginning of this coming year,” he said. “That’s an important improvement for us, and that’s one that’s going to happen very quickly.”
Since the BAB program’s creation, some issuers have aired concerns over the fact that the subsidy payments, which are supposed to arrive on the date interest payments on the bonds are due, would be paper-based and sent in the mail, calling it outdated and potentially unreliable...