MunicipalBonds.com Calls on The Bond Market Association and Issuers Not to Break Tax Laws

Open Letter to Mark Scott, IRS National Director for Tax Exempt Bonds.

Mark,

As you are aware, MunicipalBonds.com is the investor advocate in the area of public finance and Municipal Bonds.

Regarding The Bond Market Association's complaint that IRS audits of variable rate debt result in Issuers paying higher prices and facing reduced demand--MunicipalBonds.com wishes to make comment. On behalf of investors and the general public, we support your current and continued audit efforts.
We in fact call on you to increase your audit activities.

In brief, MunicipalBonds.com recommends that if Issuers have problems with IRS audits, it is best that Issuers not bring deals to market that could be audited, or do anything in regards with existing deals that could trigger an audit.

MunicipalBonds.com also highly recommends that the IRS research the pricing patterns around the time periods of an audit announcement, and determine if there were pricing abuses showing that broker/dealers or sophisticated individuals that had knowledge of an IRS audit took advantage of investors who did not have this knowledge.

Also, MunicipalBonds.com recommends that investors not be taken any further out of the disclosure loop, as the National Association of Bond Lawyers wants. The American investing public is perhaps the only true form of oversight of the inefficient, unfair and unreasonable elements within the Municipal Bond markets. Eliminating the concern for the investor will only create future problems. The proposal should again be to simply not issue bonds that break tax laws or that could possibly cause an IRS audit.

Kevin Olson
MunicipalBonds.com

Background:
MunicipalBonds.com is a public service information site dedicated to 1) publicizing and actualizing price transparency and fair pricing in the Municipal Bond markets, as well as 2) advocating and actualizing fair disclosure of Municipal Bond disclosure information--hopefully through development of the long called for "centralized database."

Contact: Kevin Olson
Company: MunicipalBonds.com
Phone: 415-922-7870
Email: Kevin@MunicipalBonds.com
URL: http://www.municipalbonds.com