Department of the Treasury
Internal Revenue Service
- 26 CFR Part 1
- [REG-117298-21]
- RIN 1545-BQ20
AGENCY:
Internal Revenue Service (IRS), Treasury.
ACTION:
Notice of proposed rulemaking; notice of hearing.
SUMMARY:
This document contains proposed regulations that would update certain arbitrage rules and definitions applicable to tax-exempt and other tax-advantaged bonds by clarifying the time and manner for requesting refunds of overpayment of rebate to the United States, the special transition rule for transferred proceeds, the limitation on allocations to expenditures, and the IRS address for filing defeasance notices. These proposed regulations would also revise the provision addressing certain perpetual State guarantee funds, the definition of tax-exempt bond, and the definition of refunding issue. The proposed regulations would affect issuers of tax-advantaged bonds.
DATES:
The hearing on these proposed regulations has been scheduled for Thursday, July 30, 2026, at 10:00 a.m. Eastern Time (ET). The IRS must receive speakers' outlines of the topics to be discussed at the hearing by June 15, 2026. If no outlines are received by June 15, 2026, the hearing will be cancelled.
ADDRESSES:
The hearing is being held in the Auditorium, at the Internal Revenue Service Building, 1111 Constitution Avenue NW, Washington, DC. Due to security procedures, visitors must enter at the Constitution Avenue entrance. In addition, all visitors must present a valid photo identification to enter the building. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area more than 30 minutes before the hearing starts. Participants may alternatively attend the hearing by telephone.
Send an outline of topic submission electronically via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG-117298-21). Send paper submissions to CC:PA:01:PR, (REG-117298-21), Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations, Brian Choi of the Office of Associate Chief Counsel (Financial Institutions and Products), (202) 317-3154 (not a toll-free number); concerning submissions of requests to testify, attend, or to be placed on the building access list to attend the hearing, the Publications and Regulations Section at (202) 317-6901 (not toll-free number) or by email at publichearings@irs.gov (preferred).