Arbitrage Rebate Company
Foley’s Arbitrage Rebate Company draws on the extensive experience of our tax and bond attorneys and accounting staff to provide skilled counsel on arbitrage rebate compliance.
Foley’s Arbitrage Rebate Company makes the compliance process easy for you, helping you protect the tax-exempt status of your bonds and avoid expensive settlement payments to the IRS or your bondholders. Actively involved in Arbitrage Rebate Company are seasoned tax and bond attorneys — one of whom was a principal author of the 1992 and 1993 IRS arbitrage and arbitrage rebate regulations — and accounting staff with years of hands-on insight and training in the field. Our highly experienced team will help ensure your compliance, prepare required IRS filings, identify ways to reduce rebate payments, and provide counsel and money-saving strategies. We are ultimately responsible for assuring that our determinations comply with the arbitrage rebate regulations.
Our service begins with a review of your key bond documents such as the tax matters certificate, the IRS information return (Form 8038 or 8038-G), and the official statement. Then, we determine whether the bond issue is exempt from rebate. If it is exempt, we prepare our opinion letter advising that no further rebate service is required for the bond issue.
If a rebate determination is required, we determine the yield on the bond issue, account for the investment and expenditure of all proceeds in the included funds, and determine the excess investment earnings — in other words, the rebate liability — taking into account credits and rounding allowed by the regulations.
If any questions arise, we bring them to your attention. Additional steps may be required if rebate payments are past due (either to provide for, or to avoid, penalties for late payment) or if the issuer is entitled to recover prior overpayments of rebate.
Sometimes rebate payments can be completely avoided by meeting a spending exception. The reports we provide for spending exception determinations are as complete as our reports for rebate determinations. We also provide tax counseling and strategies for saving money by meeting the spending exceptions.