title: Some tax-exempt bond issues could become taxable.
abstract: The IRS recently launched a new program to audit healthcare mergers-and-acquisition financing arrangements. To date, the IRS has focused on transactions involving IDSs in which tax-exempt bonds issued on behalf of the participants have been used to prepay the outstanding debt of one or both participants. The IRS is concerned that such tax-exempt financing may involve impermissible advance-refunding of the previous debt, in which case the financing would be deemed taxable and the participants subject to penalties.
authors.affiliation: McDermott, Will & Emery, Washington, D.C., USA.
authors.forename: S B
authors.initials: SB
authors.lastname: Lough
authors.forename: P K
authors.initials: PK
authors.lastname: O'Hare
mesh_terms: D002202:Capital Financing / Q000331:legislation & jurisprudence*; D019033:Delivery of Health Care, Integrated / Q000191:economics / Q000331:legislation & jurisprudence; D005375:Financial Audit; D006077:Government Agencies; D019983:Guideline Adherence; D006273:Health Facility Merger / Q000191:economics* / Q000331:legislation & jurisprudence; D019464:Tax Exemption / Q000331:legislation & jurisprudence*; D014481:United States