Public Finance Tax

Timely, responsive tax support for complex financing structures

Butler Snow’s Public Finance Tax team helps structure tax-exempt and tax-advantaged public finance deals to comply with the myriad of applicable complex tax laws. We are available to provide tax guidance and compliance at the front-end of a financing; and we provide ongoing guidance throughout the life of the deal, so our clients do not inadvertently create taxable events or fall out of compliance.

Our tax attorneys are involved in every aspect of the firm’s public finance practice and have collectively participated in nearly every type of authorized municipal financing transaction. We help our clients navigate the myriad of tax issues presented in tax-exempt and tax-advantaged bond financings to ensure compliance with the Internal Revenue Code, and we are always available to our clients whenever they need further tax guidance related to their deal.

We work closely with issuers, conduit borrowers and other law firms serving as special tax counsel, providing tax assistance in the structuring of various municipal financing transactions and providing advice to bond counsel firms who need additional tax support.

Post-issuance compliance

Our tax team regularly serves as a post-issuance resource to help our public finance clients stay in compliance throughout the life cycle of their bond issues. We provide timely, responsive counsel and comprehensive services to these issuers regarding all aspects of their transactions, including reports, regulations involving investment of bond proceeds, use of debt financed property, sources of payment for bond debt service, and maintenance of special records relating to guaranteed investment contracts and interest rate swaps.

Audits and private letter rulings

When necessary, we represent clients in audits before the Internal Revenue Service and state regulatory bodies involving a wide variety of public finance issues. Our tax team is highly experienced in representing issuers and conduit borrowers before the IRS in both random and targeted audits where the tax-exempt status of the bonds is under scrutiny. Additionally, our tax team works with the United States Department of Treasury and the IRS when preparing, presenting and obtaining IRS private letter rulings on complex tax matters on behalf of our clients.

For post-issuance compliance, we successfully guide our clients through the reallocation of bond proceeds, remedial actions under the change-in-use rules and closing agreements with the IRS.

Timely access to tax changes

Our tax attorneys also maintain ongoing relationships with regulators at all levels of government, including the IRS and U.S. Treasury Department. We closely follow current tax law and potential tax-law changes to quickly determine how these revisions will impact our clients’ financing. And we regularly provide timely alerts and counsel regarding pending public tax-related legislation, rulings and announcements.