For more than 35 years, affiliate Kutak Rock Arbitrage Consulting LLC has calculated and reported on the complex arbitrage rebate liability for thousands of tax-exempt bond issues, aggregating billions of dollars.
Led by a dedicated Arbitrage Rebate Analyst and backed by a team of public finance tax attorneys, Kutak Rock offers clients computer-based analysis designed to solve financial problems unique to public borrowers. Our arbitrage consulting services help clients avoid costly mistakes in arbitrage calculations, ensuring the maintenance of tax-exempt status for bonds.
Our rebate services include the following:
- Analyzing bond legal documents and classifying each investment transaction based upon financial information provided by the issuer, the borrower or the trustee.
- Ascertaining whether certain funds may qualify for a six-month, 18-month or two-year rebate exception.
- Preparing a summary of the investment activity for all investments; an independent bond yield computation; an arbitrage rebate liability computation; and an investment yield computation.
- Delivering our report, with computations attached, showing the amount of any arbitrage rebate liability.
- Preparing IRS Forms 8038-T and providing instructions relative to filing and paying the liability.
- Assisting with any Internal Revenue Service inquiry.
- Providing advice about the impact of proposed and promulgated regulations on arbitrage and rebate compliance.
- Ascertaining that all available exceptions from rebate have been considered for all funds.
- Providing any required Kutak Rock opinions.
Typical arrangements provide for either annual, interim, five-year or final rebate computations. Let Kutak Rock help you navigate the complexities of arbitrage rebate compliance. Contact us today to get started.
