Slide 1 TreasuryDirect by liuhongmei

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									Role of the Internal Revenue Service’s
     Office of Tax-Exempt Bonds


                                         1
Under the Constitution
 Under the authority of the Constitution,
  Congress created the Treasury Department
  under Section 7801 of the Internal Revenue
  Code.
 Section 7803 establishes a Commissioner of
  the Internal Revenue Service in the
  Department of Treasury.
     The Commissioner is charged to administer,
      manage, conduct, direct, and supervise the
      execution and application of the internal
      revenue laws.
                                                   2
3
Under the Constitution
 Section 7804 authorizes the Commissioner of
  Internal Revenue to employ such number of
  persons as the Commissioner deems proper
  for the administration and enforcement of the
  internal revenue laws.
 Section 6201 authorizes the *Secretary or his
  delegates to make inquiries, determinations,
  and assessments of all taxes.
* Secretary refers to the Head of the Treasury Department. This term is
   generic in that through delegation orders, one becomes the Secretary
   charged with oversight of overall enforcement of the laws.
                                                                          4
                                                           Tax Exempt & Government Entities
                                                                                 Sarah Hall Ingram, Commissioner (202) 283-2500                                           Joe Urban, Tech. Advisor, (202) 283-8925
                                                    Vacant
                                                                                                                                                                         Rick Trevino, Exec Assistant, (202) 283-9963
                                             Sr Technical Advisor              Joseph H. Grant, Deputy Commissioner (202) 283-2700                                        Mike Daly, Exec Assistant, (202) 283-9964
                                                (202) 283-8804


                            Rob Choi                    Peter McConkey, (202) 283-9531                Lois G. Lerner,                 Diane Letourneau, (202) 283-8861                      Moises C. Medina                                Michelle Marx
                                                               Executive Assistant                                                           Executive Assistant                       Director, Government Entities                      Executive Assistant
                 Acting Director, Employee Plans           Lou Leslie, (202) 283-9612          Director, Exempt Organizations           Sue Lehman, (202) 283-8857                                                                          (202) 283-9743
                         (202) 283-9660                      Mgr, Program Mgt Staff                    (202) 283-0289                      Mgr, Program Mgt Staff                             (202) 283-9738


                                                                                                                                                                                                                                                     Lisa J. Beard
Mark O’Donnell           Andy Zuckerman                                                   Melaney Partner          Holly O. Paz                                              Paul Marmolejo                                                        Program Manager
                                                                                                                                                                                                        Christie Jacobs       Cliff Gannett
                                                   Monika Templeman                                                                          Nanette Downing                 Dir Federal/State/                                                     (202) 283-9799
 Dir Customer                Dir Rulings                                                 Acting Dir Customer     Acting Dir Rulings                                                                        Dir Indian          Director Tax
                                                     Dir Examination                                                                             Dir Exam                       Local Govts
                                                                                                                                                                                                          Tribal Govts        Exempt Bonds
 Ed & Outreach             & Agreements                                                    Ed & Outreach           & Agreements                                               (559) 443-7601
                                                     (410) 962-4092                                                                           (214) 413-5425                                            (720) 956-4504       (202) 283-9820          Mark Kirbabas
(202) 283-9532            (202) 283-9660                                                   (202) 283-8845         (202) 283-9473                                              (202) 283-9818                                                          Dir Customer
                                                                                                                                                                                                                                                     Ed & Outreach
                                                                                                                                                                                                                                                     (202) 283-9742
                             Vicki Surguy               Betty McClernan                                              Cindy Thomas                 Jackie Grissom
                                  Mgr                       Mgr Exam                                                    Manager                    Manager Exam                Jayne Maxwell              John Saltmarsh     Robert (Bob) Henn
                             Determination             Programs & Review                                              Determination              Programs & Review                Mgr FSLG                    Mgr ITG             Mgr TEB
                                                                                                                                                                               Field Operations           Field Operations    Field Operations
                            (513) 263-3583               (410) 962-5659                                              (513) 263-3519                (214) 413-5404
                                                                                                                                                                               (512) 499-5070             (909) 388-8162      (718) 488-2014
                                                        Colleen Patton                                               Donna Abner                    Jason Kall
                             Daniel Jones                                                                                                                                     Phyllis Burnside
                                                           Area Mgr                                                     Manager                      Manager                                               Steve Bowers       Steve Chamberlin
                              Mgr Determ                                                                                                                                      Acting Mgr FSLG
                                                         Pacific Coast                                              Determination &             Compliance Strategy                                         Mgr ITG CPM         Mgr TEB CPM
                            Qual Assurance                                                                                                                                          CPM
                                                                                                                                                                                                                               (636) 255-1290
                                                        (720) 956-4533                                              Qual Assurance                (281) 721-7760                                           (714) 347-9430
                            (513) 263-3422                                                                                                                                     (401) 525-4205
                                                                                                                    (513) 263-3696
                                                         William Dolce                                                                               Joan Hirsch
                              Bill Hulteng                 Area Mgr                                                      Vacant                        Area Mgr
                              Mgr EP Tech                  Northeast                                                    Manager                      Pacific Coast
                            (202) 283-9508              (860) 258-2020                                                  Technical                   (562) 400-1801
                                                       Michael Sanders                                                                             Peter Lorenzetti                             Marian Bodart
                                                           Area Mgr                                                    David Fish                      Area Mgr                         Dir Business Systems Planning
                              Joyce Kahn
                                                          Mid-Atlantic                                                  Manager                        Northeast                                (202) 283-8864
                           Acting Mgr EPTech
                                                        (215) 553-7613                                                  Guidance                    (718) 488-2010
                               Guidance &
                                                                                                                     (202) 283-8909                                                             Bobby Zarin
                            Qual Assurance               Janice Gore
                                                                                                                                                   Joanne Dorling                        Dir Communication & Liaison
                            (202) 283-9586                 Area Mgr
                                                                                                                                                      Area Mgr                                 (202) 283-8868
                                                          Great Lakes
                                                                                                                                                     Mid-Atlantic                                  Cynthia D. Dunn
                                                        (262) 513-3465
                               Janet Mak                                                                                                           (908) 301-2653                                      Dir EDI
                          Acting Mgr Voluntary          Craig Bellanger                                                                                                                            (202) 283-9959
                                                           Area Mgr                                                                                 Regeina Hall
                               Compliance
                                                                                                                                                   Acting Area Mgr                                Bryan Musselman
                            (718) 488-2383                Gulf Coast
                                                                                                                                                     Great Lakes                                     Dir Finance
                                                        (504) 558-3135
                                                                                                                                                   (214) 413-5434                                  (202) 283-9906
                                                                                                                                                                                                  Tom Murray
                                                                                                                                                     Mary Epps
                                                                                                                                                                                             Dir Human Resources
                                                                                                                                                      Area Mgr
                                                                                                                                                                                                 (202) 283-9894
                                                                                                                                                     Gulf Coast
                     CUSTOMER SERVICE                                                                                                              (404) 338-8214                                  Imraan Khakoo
                          TOLL-FREE                                                                                                                                                                   Dir Planning
                        (877) 829-5500                                                                                                             Kathie Averett                                   (202) 283-9907
                                                                                                                                                         EO                                       Roy E. Olson
                                                                                                                                                  Compliance Area                           Dir Research & Analysis                                  5
                                                                                                                                                   (801) 620-2119                                (202) 283-9855
                                                                                                                                                                                                                                          February 2011
6
Compliance and Program Management
 TEB Compliance and Program Management staff is responsible for:

       Coordinating referral information with the TEB Referral Committee;
       Seeking to resolve Voluntary Closing Agreement Program (VCAP)
        submissions;
       Development of an ongoing Outreach Program;
       Updating the Internal Revenue Manual and assisting in the
        issuance of Revenue Procedures
       Coordinating with the Office of Associate Chief Counsel on
        procedural on guidance matters;
       Assisting Field personnel in the identification and development of
        complex and emerging technical issues;
       Administering TEB’s quality review of closed examination cases;
       Administering questionnaires and market segment surveys; and
       Classifying returns related to general examination program activity



                                                                              7
Voluntary Closing Agreement
Program (VCAP)
 Purpose: The primary purpose of VCAP is to
  encourage issuers, conduit borrowers, and other
  parties to bond transactions to exercise due diligence
  and to attempt to correct any issuance and post-
  issuance infractions of the applicable sections of the
  Internal Revenue Code.
 In accordance with Notice 2008-31, VCAP was
  expanded to include tax credit bonds.
 It is the continuing policy of the Service to attempt to
  resolve violations of the Code without taxing
  bondholders.

                                                         8
VCAP
 VCAP is not available when:
    The violation can be remediated under existing
     remedial action provisions or tax-exempt bond closing
     agreement programs contained in the regulations or
     other published guidance.
    The bond issue is under examination.
    The tax-exempt status of the bonds is at issue in any
     court proceedings or is being considered by the IRS
     Office of Appeals.
    The Service determines that the violation was due to
     willful neglect.


                                                             9
VCAP Resolution Standards
 IRM section 7.2.3.3 sets forth resolution standards
  under TEB VCAP for certain identified violations.
      Excessive nonqualified use;
      Failure to provide notice of defeasance;
      Failure to defease within 10.5 years of issuance;
      Alternative minimum tax adjustment;
      Capital expenditure limitation failure;
      Maturity exceeding 120% of economic life;
      Impermissible advance refunding; and
      Failure to timely reinvest proceeds into 0% SLGS.


                                                           10
Questionnaires and Market Segment Surveys

  Purpose: Gather data regarding the practices and
   procedures of issuers regarding record keeping and
   monitoring of the rules applicable to their financings.
       As part of developing relationships with State officials,
        TEB will seek to partner with states to address record
        retention.
  Allows TEB to monitor non-compliance trends for the
   purpose of designing proactive education and
   outreach products for use by TEB Customers.
  Failure to respond may result in an examination.


                                                                    11
Classification
 The process by which returns are selected for
  examination.

 Classification attempts to include financings that
  address:
    Key areas identified through examinations and
     compliance check project initiatives;
    Market segment risk assessment; and
    Annual Work Plan criteria.


 Classified returns are either:
      Examined by CPM staff as part of a classification
       redesign that limits the focus of examinations
      Examined by Field Operations                        12
Field Operations
 The focus of TEB’s Field Operations is to identify and
  correct noncompliance with fairness and the highest
  level of integrity.

 Examinations are conducted at the issuer level,
  consistent with the continuing policy to attempt to
  avoid taxing individual bondholders.

 Field Operations personnel located throughout the
  country conduct comprehensive and limited scope
  examinations, and assist in the delivery of outreach
  to the bond community.
                                                         13
Field Operations
 TEB Field Operations is responsible for:
      Conducting examinations that include
           Annual Work Plan examination
           Limited scope
           Project initiatives
           Referrals
      Consideration of fraud and IRC section 6700 promoter
       penalties
      Conducting pre-payment and post-payment compliance
       activity with respect to direct payments related to Build
       America Bonds and other Direct Pay Bonds;
      Coordinating with other business operating divisions to
       assess tax on bondholders and conduit borrowers, when
       appropriate; and
      Processing requests for recovery of overpayments of rebate.

                                                                 14
Examinations
 As part of TEB’s general program work, the
  Field:
     Conducts comprehensive examinations of a
      wide variety of governmental and private
      activity bonds
     Seeks to resolve identified violations through
      closing agreements.




                                                       15
Examinations
 The primary objective of a TEB examination
  is to determine if the bond issuance is in
  compliance with the qualification provisions of
  the Internal Revenue Code, which permit
  bondholders to exclude from gross income
  interest received on the bonds.




                                                16
Examinations
 In a tax-exempt bond examination the Issuer
  of the bonds is considered the “taxpayer,” so
  the burden of maintaining and producing
  adequate records necessary to conduct a
  quality examination is placed on the Issuer.
 In the examination of a private activity bond
  many records are often secured from the
  Conduit Borrower, and sometimes from other
  parties to the transaction. However, they are
  considered third parties in a tax-exempt bond
  examination.
                                                17
Examinations
 Under the provisions of IRC section 6103, the
  Service may contact third parties to obtain
  information.
 Generally, contacts with third parties are made when
  the Service is unable to obtain the information from
  the issuer or to verify information provided by the
  issuer.
 IRC 7602(c) requires the IRS to:
      Provide advance notice to the taxpayer that third party
       contacts may be made.
      Periodically provide a list of all third party contacts to
       the taxpayer.
      Provide a list of third party contacts to the taxpayer
       upon request.
                                                                    18
Examinations
 At the inception of the examination, the issuer is
  notified in writing of the initiation of an examination of
  an identified financing.
 Four types of letters
      General
      Project Initiative with no identified problems (green)
      Problematic financings, but not identified with respect
       to the examined bond (yellow)
      Referrals - External or internal sources that identify
       specific bond issues as problematic (red)


                                                                 19
Examinations
 During the course of an examination, TEB seeks to identify and
  resolve issues as expeditiously as possible
 Issues may be resolved without the issuance of a formal report,
  or subsequently thereafter
 Jeopardizing violations are resolved through a closing
  agreement with the issuer and may include other parties to the
  transaction
 Resolution of violations through closing agreements
     Includes negotiated terms that typically include
           payment of a settlement amount and/or
           redemption of bonds
      Consider, in part, the due diligence of issuers and their
       representatives to act in good faith to resolve violations in a
       timely manner.

                                                                         20
Examinations
Closing agreement settlement amounts are determined
  based on a variety of factors, including
      Taxpayer exposure
          Calculated for periods for which there are “open
           statutes” for the assessment tax on bondholders
           determined as of the date the issuer was notified of a
           bond violation (generally three years after the filing of
           the tax return)
          Computed at a 29% tax rate on interest paid on the
           bonds plus deficiency interest
      Negotiated settlement amounts that appropriately
       reflect the nature and severity of the violation to be
       resolved.

                                                                       21
Examinations
 Failure to resolve an identified violation through a
  closing agreement results in:
      The issuance of a Form 5701 (if not previously issued)
      A proposed adverse letter
 Pursuant to the issuance of a proposed adverse
  letter, the issuer may request the matter to be
  considered by the Office of Appeals
 Failure to timely request an appeal will result in the
  issuance of a final adverse letter pursuant to which
  the interest on the bonds is includible in the gross
  income of bondholders (or a credit is not allowable.)
                                                            22
Examinations of Advance Refunding Bonds

  One of the key audit aspects of an advance
   refunding issue is to determine that the yield
   on the escrow fund is not more than .001%
   above the bond yield of the refunding bonds.
  To ensure such compliance, requested
   documentation typically includes:
      The Verification Report,
      Investment records, and
      Proof of securities purchased to fund the
       escrow.

                                                    23
Examinations of Advance Refunding Bonds

  Proof of securities purchased can include:
      For escrows funded with United States
       Treasury, State and Local Government Series
       (SLGS) Securities, including zero interest
       securities:
           copies of the final SLGS subscription forms with
            proof of date subscribed, principal amounts,
            interest rates, maturity dates, issuance dates, first
            interest payment dates, appropriate signatures,
            and Federal Reserve Bank received stamps.


                                                                24
Examinations of Advance Refunding
Bonds
     For escrows funded with open market
      securities, forward float contracts, and similar
      securities, documentation establishing the
      purchase of such securities at fair market
      value is requested, e.g., copies of dealer trade
      confirmations and bid documents.




                                                     25
Examinations of Advance Refunding
Bonds
     In the event of an escrow restructuring
      involving the sale of:
          SLGS, a copy of the Early Redemption
           Calculations Report from the Bureau of Public
           Debt is requested.
          Open market securities, copies of all dealer trade
           confirmations with proof of sale dates, interest
           rates, and sale prices




                                                            26
Examinations of Advance Refunding Bonds

 The focus of any advance refunding bond
  examination is largely driven by the funding of
  the escrow fund:
      SLGS,
      Open Market Securities, or
      A combination of both (0% rollover SLGS).




                                                   27
Examinations of Advance Refunding Bonds

 SLGS-funded escrows:
    Focus on verification that the issuer in fact purchased
     what was depicted in the Verification Report and no
     deviations occurred.
 Escrows with open market securities:
    Same as above, but with additional consideration to
     the purchase of the securities at fair market value.
 Escrows requiring reinvestment into 0% SLGS:
    Verify the reinvestment occurred and occurred timely.




                                                               28
Examinations of Advance Refunding Bonds

 Violations resulting from the failure to reinvest
  or timely reinvest in 0% SLGS can result in a
  yield on the escrow fund that is higher than
  the yield on the refunding bonds.
 VCAP offers a standardized resolution for this
  violation.
 The Field Operations resolution will result in a
  harsher resolution to foster self-identification
  of failures.

                                                  29
Examinations of Advance Refunding Bonds
 Requirements under the VCAP resolution:
      the issuer submits the request within 60 days of the next
       required computation date following the date of the
       reinvestment failure,
      the issuer (or the escrow agent through the issuer) agrees to
       pay an amount equal to the sum of the following:
           (1) An amount which, if treated as a payment with respect to
            the investments held in the escrow, reduces the yield on the
            escrow to the bond yield; plus
           (2) An amount equaling interest accrued at the underpayment
            rate under IRC section 6621 beginning on the date the payment
            would have been due if treated as a yield reduction payment
            and ending on the date the payment is actually paid to the IRS.




                                                                         30
Examinations of Advance Refunding Bonds

 For this purpose, proceeds held by the trustee due to
  this reinvestment failure may be treated as invested
  at the applicable federal funds rate (AFFR)

 Trustee certifies that
    Its customary practice is to invest its overnight
     balances at a rate which approximates the AFFR
    the proceeds were likely invested in such a manner


 Certificate is required even if trustee is not a party to
  the VCAP
                                                              31
News Flash!
 The Treasury Department announced the suspension
  of sales of State and Local Government Series
  (SLGS) nonmarketable Treasury securities until
  further notice, effective 12:00 noon Eastern Daylight
  Time (EDT), May 6, 2011. This suspension is
  necessary because the statutory debt ceiling has not
  been raised. The suspension will assist Treasury's
  management of the debt subject to limit.
 The suspension applies to demand deposit and time
  deposit securities. Subscriptions for SLGS received
  by the Bureau of the Public Debt prior to 12:00 noon
  EDT, on May 6, 2011, will be issued on the date
  requested. New subscriptions for SLGS will not be
  accepted during the suspension.

                                                          32
Yield Restriction Compliance when
SLGS Window is Closed
 Generally, the proposed Treasury
  Regulations (into which an issuer may elect)
  may elect) allow an issuer to make a yield
  reduction payment for investments purchased
  when the SLGS window is closed.



Prop. Treas. Reg. 1.148-5(c)(3)(viii)
  (09/26/2007)(viii)

                                             33
Whistleblower/Fraud/6700


 TEB continues to address referrals from the
  Whistleblower Office and the application of
  section 6700 penalties and fraud
  considerations when warranted.




                                                34
Whistleblower
 In 2006, legislation was enacted establishing
  the Whistleblower Office such that previously
  existing Code section 7623 was re-
  designated as section 7623(a) and a new
  section (b) provision was added.
 Primary difference between “a” and “b” is that
  b claims are those for which the amount of
  tax due is over $2M and are subject to a
  “Taint Analysis.”

                                                  35
Whistleblower
 Taint analysis takes into consideration whether the
  informant’s claim might be tainted, e.g. as a result of
  current employment with the identified taxpayer or
  illegally obtained information.
 In conjunction with counsel, TEB conducts taint
  analyses and makes recommendations to the WBO
  as to whether a referral item should be examined.
  (TEB is not required to conduct an examination even
  if a recommendation to the WBO to do so is made.)



                                                            36
Whistleblower
 TEB has received approximately 30
  whistleblower claims to date.
 One submission can include identification of
  multiple bonds.
 Only the Director of the Whistleblower Office
  can decide whether and in what amount a
  claim for award may be paid.
 An award between 15% and 30% of the
  amount of proceeds collected by the Service
  could be awarded.

                                                  37
Fraud and 6700


 In all examinations, consideration is given to
  the potential for fraud and whether the
  application of the Code section 6700 penalty
  is appropriate.




                                                   38
Fraud and 6700
 Section 6700 is applicable to any person who:
    organizes or assists in organizing
    and makes or furnishes (or causes another person to
     make or furnish) certain statements, including
     statements regarding exclusion of income and
     allowability of credits
    and for which the person knows or had reason to know
     such statement was false or fraudulent as to any
     material matter,
    shall pay a penalty of 50% of the gross income derived
     from the activity.


                                                          39
Fraud and 6700
 Fraud involves a willful attempt.
 Section 6700 is not a fraud penalty.
 Section 6700 requires that the person knows
  or should have known that the statements
  were false or fraudulent.
 It is not necessary that a determination be
  made that bonds do not qualify as a tax
  advantaged bond in order to assert a penalty.


                                                40
Initiatives
 There are two primary methodologies used to initiate
  a project initiative. They are:
      Market Segment Compliance Measurement:
         Systematic selection of each market segment over a
          period of time to measure noncompliance of that
          segment or type of bond, e.g., small issue
          manufacturing bonds and single family housing bonds
          would constitute separate market segments.
      Emerging Issues:
         Identification of cases based on the existence of
          potential emerging or identified issues within the TEB
          return population, e.g., an identified abuse resulting in
          the failure to properly determine investment yield.

                                                                  41
Initiatives
 Recent examples of project initiatives include:


     Tax Increment Financing
     Smaller Variable Rate Issuers
     Independent Multi-Purpose Special District
     Student Loan Bonds




                                                   42
Limited Scope Exams
 Project initiatives can take the form of a
  limited scope examination.
 Limited scope examinations can be expanded
  to a more comprehensive examination if it is
  deemed warranted by the Field Operations
  examining agent and approved by the Field
  Operations Group Manager.




                                               43
Limited Scope Exams
 Examples of current and future limited scope
  examinations include:

     Form 8038-T Filing Compliance Initiative,
     Pooled Financings Initiative, and
     Advance Refunding Initiative.




                                                  44
TEB Field Operations and CPM Teams
  As part of a collaborative effort between Field
   Operations and CPM, TEB has assembled numerous
   teams within TEB to help facilitate the goals set forth
   in its Work Plan.

  Examples of these teams include:
     The Arbitrage Team
     Direct Pay Tax Credit Bonds Compliance Team
     State Outreach Team
     Distressed Government Entities Team



                                                         45
Direct Pay Bonds
 Section 54AA(g) provides for the issuance of
  Direct Pay Build America Bonds
     Governmental bonds only
     Taxable bonds that would otherwise qualify as
      tax-exempt bonds
     Issued in 2009 or 2010
     All proceeds used for capital expenditures
     An information return is filed with the Service


                                                    46
Direct Pay Bonds




                   47
Direct Pay Bonds




                   48
Direct Pay Bonds

 Issuer receives a 35% credit from the Federal
  government for the interest paid on the bonds
 To receive the credit, an issuer must file a
  Form 8038-CP which is a claim for refund
 The refund claim is a tax return or claim for
  refund, not an information return



                                              49
Direct Pay Bonds




                   50
Direct Pay Bonds
Form 8038-CP signatures

 An officer of the issuer with authority to bind
  the issuer must sign the form

 Any paid preparer must sign the form




                                                    51
Who is a Tax Return Preparer?
 Person, including a partnership or
  corporation) who prepares:
      For compensation,
      All or a substantial portion of a return or claim
       for refund is considered a tax return preparer.
 An individual is the preparer even if a
  superior reviews his/her work.
 A preparer can be a “signing tax preparer” or
  a “non-signing tax preparer.”

                                                           52
Direct Pay Bonds
All Form 8038-CP claims undergo a review process.

 Initial Review – to evaluate whether procedurally
       The information return was properly filed
       The refund claim was properly filed

 Continued Review – the Service may consider
       information set forth in the refund claim and related
        information return
       procedural requirements related to the allowance of the
        credit
       Qualification requirements related to the refund claim
        obligations
       Information obtained from publicly available sources
       Any other information deemed necessary for such purpose.
                                                                   53
Direct Pay Bonds - Offsets
Credit payments are subject to offset against
  other liabilities, e.g., unpaid federal tax
  liabilities and past due debts owed to other
  federal agencies.

 The issuer of the refund claim obligation, and
  not any other person who makes bond
  interest payments or receives the credit
  payments on behalf of the issuer, is the
  person whose liabilities are subject to offset.

                                                    54
Direct Pay Bonds
  Erroneous and Disallowed Refund Claims

 A revenue procedure is being developed to
 address any erroneous or disallowed credits.




                                                55
Examinations of Direct Pay Bonds
 Currently TEB has initiated approximately 25
  examinations of Build America Bonds.
 These examinations are being conducted by the
  Direct Pay Tax Credit Bonds Compliance Team.
 Focus is being given to:
      Issue price,
      Cost of issuance limitation,
      Purchase of bond insurance,
      Proceeds properly used for capital expenditures
      Appropriateness of the time of issuance (in light of
       expiring legislation.)
                                                              56
Claims
 All claims for refund of a prior rebate or yield
  reduction payment are filed through the
  Ogden Service Center and are forwarded for
  processing.
 Claims are a priority case within TEB.
 To better facilitate the processing of claims,
  all claims are being reviewed by the Arbitrage
  Team at the direction of the Arbitrage Team
  Leader.

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Claims
 Some claims require taxpayer contact and others can
  be closed based on the information provided with the
  claim.
 Failure to respond to requested information for a
  claim can result in the denial of the claim.
 Upon a review of a claim, a claim can be either
  allowed, partially denied, or fully denied.
 An issuer may appeal the partial or full denial of a
  claim.



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