Declaration of Intent Requirement of Treasury Regulations § 1.150-2
Commentary sent to Treasury and the IRS describing the declaration of intent requirement for bond proceeds used to reimburse prior expenditures contained in Treasury Regulations § 1.150-2 and setting forth its historical background.
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Helen Hubbard, Esq.
Associate Chief Counsel
Financial Institutions and Products (CC:FIP)
Internal Revenue Service (IRS)
Re: Declaration of Intent Requirement of Treasury Regulations § 1.150-2b (Reimbursement Proceeds)
Dear Ms. Hubbard,
The National Association of Bond Lawyers (“NABL”) is a non-profit organization and specialty bar association of approximately 2,500 lawyers. NABL exists to promote the integrity of the municipal bond market by advancing the understanding of and compliance with the law affecting public finance. NABL members and their firms are involved every year in a significant portion of the municipal financings by United States state and local governments.
Enclosed, please find a commentary prepared by NABL’s Tax Law Committee describing the declaration of intent requirement contained in Treasury Regulations § 1.150-2 and setting forth its historical background. The purposes of this commentary are to (1) highlight that the declaration of intent requirement does not mandate the use of specific words and phrasing in order to find that an official intent has been declared and (2) suggest that additional clarifying guidance may be necessary at this time.
We hope this commentary will be helpful not only to practitioners but also to Treasury Department officials and field examiners in evaluating the validity of official intent declarations. We would be happy to discuss the commentary with you at your convenience if you have questions or concerns.
Joseph (Jodie) E. Smith
National Association of Bond Lawyers