IRS Issues Guidance for PABs

On May 4, the IRS issued 2 documents providing guidance for Tax-Exempt Bond Private Activity Bonds (PABs) when used with 4% credits from the LIHC program.

Revenue Procedure 2020-21 provides temporary guidance allowing hearings to be held by teleconference to meet the statutory PAB public approval requirement.

And Notice 2020-25, temporarily expands the circumstances and period which a PAB is treated as a continuing in effect without re-issuance or retirement.

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