The US Treasury Department and IRS released final regulations (T.D. 10020) regarding when tax-exempt bonds are treated as retired on 27 December 2024.
The final regulations address when tax-exempt bonds are treated as retired for certain Federal income tax purposes. They are necessary to unify and to clarify existing guidance on this subject.
The final regulations affect State and local governments that issue tax-exempt bonds.
The regulations amend the Income Tax Regulations (26 CFR part 1) by adding final regulations under section 150 and amending the regulations under section 1001 of the Internal Revenue Code (Code) to provide rules for determining when tax-exempt bonds are treated as retired for purposes of sections 103 and 141 through 150 of the Code (final regulations).
These regulations are promulgated under the express delegation of This document is scheduled to be published in the Federal Register on 30 December 2024 and available online at https://federalregister.gov/d/2024-30267, and on https://govinfo.gov authority in section 7805(a) of the Code, which authorises the Secretary of the Treasury or her delegate to “prescribe all needful rules and regulations for the enforcement of [the Code], including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue.”
