Tax Alert: COVID-19 RELATED RELIEF – TELEPHONIC TEFRA HEARINGS FOR PRIVATE ACTIVITY BONDS
May 6, 2020
On May 4, 2020 the IRS released Revenue Procedure 2020-21 providing a temporary rule allowing public TEFRA hearings to be conducted exclusively by telephone conference call. Section 147(f) of the Internal Revenue Code requires the public approval of a bond issue by the governmental unit issuing the bonds, through a public hearing at a location convenient to residents of the approving governmental unit following reasonable public notice. Due to the COVID-19 pandemic, state and local governments have sought alternatives to in-person meetings to satisfy the public hearing requirement. Revenue Procedure 2020-21 responds to those requests for relief by providing that a toll-free telephonic conference, is convenient for residents and therefore satisfies the public hearing requirement under Section 147(f). The effective date of this relief is May 4, 2020 but it may be applied to hearings conducted telephonically before such date in response to the COVID-19 pandemic. The ability to conduct telephonic TEFRA hearings will remain in effect until December 31, 2020.
For additional information on how this COVID-19 relief relates to your organization, please contact your BLX representative.