In Revenue Procedure 2021-39, the IRS extended guidance issued in Revenue Procedure 2020-21 regarding TEFRA hearings. Under Section 147(f), public approval is required for tax exempt private activity bonds. Refundings are an exception. Under Section 147(f)(2)(B), an issue will be treated as approved by any governmental unit if the issue is approved by the applicable elective representative of the governmental unit after a public hearing following reasonable public notice, or by voter referendum of the governmental unit.
Revenue Procedure 2020-21 permitted telephonic hearings that are accessible to residents of the approving governmental unit, in light of the Covid 19 Pandemic. Since the Covid 19 Pandemic continues, Revenue Procedure 2021-39 extends the time period for use of telephonic hearings to March 31, 2022.
Victoria S. Byerly is an attorney in KAV’s Public Finance Group. A specialist in Section 103 of the Internal Revenue Code, her practice is exclusively dedicated to state and federal tax matters related to the issuance of tax-exempt debt obligations.