• Newly Announced Reissuance Standards for State and Local Bonds--Notice 2008-41
  • April 21, 2008
  • Law Firm: Jones Day - Cleveland Office
  • In light of recent rating agency downgrades of major municipal bond insurers ("Insurers") and failed auctions for auction-rate bonds, on March 25, 2008, the Internal Revenue Service issued Notice 2008-41 (the "Notice") to modify and clarify the determination of when tax-exempt bonds are treated as reissued (treated as a current refunding) or retired (treated as extinguished), solely for tax-exempt bond purposes under Internal Revenue Code ("Code") sections 103 and 141 through 150.