Arbitrage Rebate and Bond Compliance Services
Bonds are essential for funding new construction projects, repairs and improvements. They also support investments that pave the way for future civic planning. But if you don’t keep up with the arbitrage those investments create, you can easily find yourself without the funds to pay a shocking sum of money.
Arbitrage rebate calculation can be a tricky and time-consuming process. Mistakes or lapses can be extremely costly. This is why it’s so important to work with professionals who specialize in bond compliance services.
At ACS, our talented team of arbitrage professionals and CPAs offer the highest level of expertise, plus all the transparency and collaboration you need to know exactly where you stand. Our goal is to provide peace of mind by creating successful bond compliance processes and ensuring ongoing federal tax compliance with IRS tax regulations.
We understand how important it is for our clients to protect the tax-exempt status of their bonds. With exceptional bond arbitrage services from ACS, you’ll keep up with your obligations and avoid costly settlements with the IRS and your bondholders.
1
Arbitrage Rebate & Yield Restriction Calculations
ACS provides arbitrage and yield restriction reports on a variety of tax-exempt financings. These include fixed and variable rate (with swaps and/or liquidity facilities) general obligation debt, revenue bonds, commercial paper, leases, draw-down loans or lines of credit.
2
Spending Exception Calculations
In a high-rate earnings environment, spending exceptions can be a valuable tool for issuers to utilize on their bonds. ACS performs spending exception arbitrage calculation reports for issuers whenever needed.
3
Preparation and Filing Form 8038-T & 8038-R
ACS provides the expertise and experience necessary to submit arbitrage rebate payments to the federal government or request a refund of an overpayment.
4
Post-Issuance Monitoring/Consulting
One of the most difficult aspects of arbitrage compliance is monitoring the important compliance dates and maintaining the proper documentation for each tax-exempt bond issue. ACS takes the guesswork out of post-issuance monitoring and provides our clients with timely and accurate notifications and consulting services. We also maintain pertinent bond records in accordance with arbitrage regulations.
5
Bond Compliance Training
ACS offers a wide array of bond compliance training materials and regularly conducts local and regional seminars across the country. We aim to create a compliance program that is tailored to each client’s needs and fits alongside IRS arbitrage regulations. Sharing these services is just one more way we enhance customer value.
6
Ongoing Consulting Services
ACS partners with our clients for the entire life cycle of their bond issue. This includes ongoing coordination and consultation with municipal advisors, bond counsels, trustees and auditors.
Why Choose ACS for Your Bond Compliance Needs
Our proprietary analytics platform ensures incredible accuracy in compliance and keeps you up-to-date with any changing regulations. Of course, when you partner with bond compliance specialists, you expect more than automated calculations. You want the dedicated expertise, hands-on service and end-to-end support it takes to remain in compliance while maximizing bond benefits.
With ACS, you’ll enjoy competitive pricing, superior service and unmatched customer support. You’ll also enjoy the peace of mind that comes with choosing a reputable and highly-qualified team of arbitrage compliance specialists. Our effective compliance programs, collaborative approach and ongoing consulting ensure that you won’t miss deadlines or face unmanageable costs.
FAQs
What are Arbitrage Rebate requirements?
State and local government issuers benefit from lower borrowing costs through tax-exempt debt issuances. Bondholders investing in these tax-exempt debt offerings get to exclude the interest received on their federal income tax returns. It’s a mutually beneficial relationship. The arbitrage rebate requirements consist of two sets of rules that, when applied, determine whether bonds are arbitrage bonds. If issuers do not carefully follow these rules, bonds can lose their tax-exempt status. Bonds that fall out of compliance are taxable, retroactive to the date of issuance. This could be an expensive mistake and one that may not be in your budget!
Do you offer Form 8038 Prep Consulting?
Yes! As part of our calculation services, ACS prepares your Form 8038-T for submission to the IRS. Form 8038-T accompanies your payment of any rebate or yield restriction liability. All you have to do is sign and send it off with a smile. We also offer Form 8038-R consulting. We’ll help you request a refund from the IRS if you made an overpayment with a prior rebate provider. Refund requests must be filed no later than two years and 60 days after the final computation date.
Do you provide Bond Compliance Services?
We do! ACS maintains an account of your tax-exempt bond issues. As part of our bond compliance program, we determine arbitrage rebate and yield restriction requirements for each bond issuance. We’ll also provide recommendations for minimizing liabilities through applicable temporary periods and spending exceptions.
Do you offer Municipal Bond Arbitrage Guidance?
ACS offers trainings year-round to help clients navigate the complex IRS regulations governing tax-exempt bonds. As your arbitrage rebate consultant, ACS steps in at the end of the bond process to calculate the lowest liability allowed under the Code.