Thursday, December 6, 2007
The IRS announced on December 6, 2007, in IR-2007-197, that it has agreed to settle a dispute involving a $31 million tax-exempt municipal bond issuance in Spokane, Washington in 1998. As a result of the bond issuance, the IRS's Office of Professional Responsibility alleged problems with "the scope of due diligence, under Treasury Department Circular 230 sections 10.22, 10.29, 10.34, and 10.51(j), with respect to the tax aspects of the bond opinion rendered in the matter." The Respondents denied the allegations, but agreed to settle without admitting the charges. As a result of the settlement, the attorneys agreed to, among other things, "comply fully with practices and procedures implemented by their current firm in its public finance group, including but not limited to (i) submitting new matters to a review and approval process, (ii) completing questionnaires and checklists to document the due diligence activities undertaken in the matter, and (iii) following practices and procedures established by the firm's opinion committee for municipal bond opinions."
To see the full announcement, "IRS Announces Groundbreaking OPR Settlement with Attorneys," go to the IRS website.