As we previously reported in our alert from November 6, 2020, the Internal Revenue Service (IRS) issued Revenue Procedure 2020-49 on November 4, 2020, extending guidance regarding the public hearing requirement for tax-exempt private activity bonds, which is commonly known in the public finance industry as the “TEFRA hearing.” Revenue Procedure 2020-49 extended the time period for which telephonic hearings are permitted under Revenue Procedure 2020-21, from December 31, 2020, until September 30, 2021.
In response to the ongoing nature of the COVID-19 pandemic, on August 31, 2021, the IRS issued Revenue Procedure 2021-39, effective immediately, extending the time period for which telephonic hearings are permitted under Revenue Procedure 2020-21 from September 30, 2021, until March 31, 2022. This extension continues the allowance of hearings held by teleconference that are accessible to the residents of the approving governmental unit by calling a toll-free telephone number. These telephonic hearings will be treated as held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit, satisfying the public approval requirement.
If you have any questions regarding the content of this alert, please contact Sharon Brown, Public Finance Practice Area co-chair, at slbrown@barclaydamon.com; or another member of the firm’s Public Finance Practice Area.
We also have a specific team of Barclay Damon attorneys who are actively working on assessing regulatory, legislative, and other governmental updates related to COVID-19 and who are prepared to assist clients. Please contact Yvonne Hennessey, COVID-19 Response Team leader, at yhennessey@barclaydamon.com, or any member of the COVID-19 Response Team, at COVID-19ResponseTeam@barclaydamon.com.