Public Approval of Tax-Exempt Private Activity Bonds, 67685-67694 [2018-28371]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 83, Number 249 (Monday, December 31, 2018)]
[Rules and Regulations]
[Pages 67685-67694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28371]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 5f

[TD 9845]
RIN 1545-BG91


Public Approval of Tax-Exempt Private Activity Bonds

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulation.

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SUMMARY: This document contains final regulations on the public 
approval requirement applicable to tax-exempt private activity bonds 
issued by State and local governments. The final

[[Page 67686]]

regulations update and replace existing regulations to address 
statutory changes, streamline the public approval process, and reduce 
administrative burdens. The final regulations affect State and local 
governments that issue tax-exempt private activity bonds.

DATES: Effective date: These regulations are effective December 31, 
2018.
    Applicability date: For dates of applicability, see Sec.  1.147(f)-
1(h).

FOR FURTHER INFORMATION CONTACT: Spence Hanemann, (202) 317-6980 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in these final regulations 
has been reviewed and approved by the Office of Management and Budget 
in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)) under OMB Control Number 1545-2185. The collection of 
information in these final regulations is the requirement in Sec.  
1.147(f)-1 that certain information be contained in a public notice or 
public approval and, consequently, disclosed to the public. This 
information is required to meet the statutory public approval 
requirement provided in section 147(f) of the Internal Revenue Code.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    This document contains amendments to 26 CFR part 1 under section 
147(f) of the Internal Revenue Code of 1986 (Code) and 26 CFR part 5f 
under section 103(k) of the Internal Revenue Code of 1954 (1954 Code). 
In the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Public 
Law 97-248, 96 Stat. 324, Congress redesignated subsection (k) of 
section 103 of the 1954 Code as subsection (l) and inserted a new 
subsection (k) that imposed a public approval requirement on tax-exempt 
industrial development bonds. On May 11, 1983, the Department of the 
Treasury (Treasury Department) and the IRS published in the Federal 
Register (48 FR 21115) temporary regulations under section 103(k) of 
the 1954 Code (TD 7892) (Existing Regulations). See Sec.  5f.103-2. A 
notice of proposed rulemaking (LR-221-82) by cross-reference to the 
temporary regulations was published in the Federal Register (48 FR 
21166) on the same day.
    In the Tax Reform Act of 1986 (1986 Tax Act), Public Law 99-514, 
100 Stat. 2085, Congress reorganized the tax-exempt bond provisions and 
carried forward the public approval requirement of section 103(k) of 
the 1954 Code in expanded form in section 147(f) of the Code. In 
section 147(f), Congress extended the public approval requirement to 
apply to all types of tax-exempt private activity bonds, as provided in 
section 141(e). The legislative history of the 1986 Tax Act states that 
``[t]he conferees intend that, to the extent not amended, all 
principles of present law continue to apply under the reorganized 
provisions.'' H.R. Rep. No. 99-841, at II-686 (1986) (Conf. Rep.). 
Thus, the Existing Regulations in Sec.  5f.103-2 remained in effect 
even after the 1986 Tax Act became law.
    On September 9, 2008, the Treasury Department and the IRS published 
a notice of proposed rulemaking (REG-128841-07) in the Federal Register 
(73 FR 52220) that proposed regulations to amend and supplement the 
Existing Regulations (2008 Proposed Regulations). The Treasury 
Department and the IRS received public comments on the 2008 Proposed 
Regulations and held a public hearing on January 26, 2009. On September 
28, 2017, the Treasury Department and the IRS withdrew the 2008 
Proposed Regulations and published a second notice of proposed 
rulemaking (REG-128841-07) in the Federal Register (82 FR 45233) (2017 
Proposed Regulations). The Treasury Department and the IRS received 
comments on the 2017 Proposed Regulations but did not hold a public 
hearing because none was requested. After consideration of all of the 
comments, the 2017 Proposed Regulations are adopted as amended by this 
Treasury decision (Final Regulations).

Summary of Comments and Explanation of Revisions

    This section discusses the public comments received on the 2017 
Proposed Regulations and explains the revisions made in the Final 
Regulations in response to those comments.

1. Section 1.147(f)-1(d): Public Hearing and Reasonable Public Notice

    Under the 2017 Proposed Regulations, an issue of private activity 
bonds is approved by a governmental unit if a qualifying elected 
representative of that governmental unit approves the issue following a 
public hearing for which there was reasonable public notice. For this 
purpose, a public hearing is generally defined as a forum that provides 
a reasonable opportunity for interested individuals to express their 
views, orally or in writing, on the proposed issue of bonds and the 
location and nature of the proposed project to be financed. Reasonable 
public notice generally means a published notice that is reasonably 
designed to inform residents of the approving governmental unit, 
including residents of the issuing unit and the host governmental unit 
where a project is to be located, of the proposed issue.
A. Public Hearing
    The 2017 Proposed Regulations provided that a governmental unit may 
impose reasonable requirements on persons who wish to participate in a 
public hearing, such as a requirement that persons desiring to speak at 
the hearing make a written request to speak at least 24 hours before 
the hearing. One commenter suggested that the Final Regulations allow a 
governmental unit to cancel a scheduled public hearing if the 
governmental unit received no timely requests to participate in the 
hearing and published a supplemental public notice. However, section 
147(f)(2)(B)(i) specifically requires a public hearing before an 
elected official may approve the issue. Furthermore, members of the 
public may not always provide timely notice of their intent to 
participate in a public hearing and, in such cases, canceling the 
hearing could frustrate the purpose of the public hearing requirement. 
Therefore, the Treasury Department and the IRS have concluded that the 
Final Regulations should not disregard the express requirement of 
holding a public hearing in section 147(f)(2)(B)(i) by permitting a 
governmental unit to cancel a public hearing. Accordingly, the Final 
Regulations do not adopt this comment.

[[Page 67687]]

    Other commenters suggested alternative means to satisfy the public 
hearing requirement. One commenter suggested allowing a public hearing 
by teleconference or webinar. The Treasury Department and the IRS have 
determined that, although these technologies may be effective for other 
purposes, they cannot replace a conventional public hearing conducted 
in-person because they are not sufficiently reliable, publicly 
available, susceptible to public response, or uniform in their features 
and operation. Another commenter suggested allowing a public hearing 
performed for any other federal, state, or local purpose to satisfy the 
public hearing requirement under section 147(f), regardless of the 
procedures by which the organizer publishes notice or conducts the 
hearing. The Final Regulations defer to a certain degree to state and 
local procedures for conducting a public hearing and publishing notice 
of that hearing. See Sec.  1.147(f)-1(d)(3) and (d)(4)(iv) of the Final 
Regulations. Furthermore, to the extent that a hearing conducted for 
another governmental purpose satisfies all of the requirements of 
section 147(f) and the Final Regulations, such a hearing may serve for 
both purposes. The Treasury Department and the IRS have determined, 
however, that state and local procedures may not supersede a specific 
requirement of the Final Regulations. Accordingly, the Final 
Regulations do not adopt either of these comments.
B. Reasonable Public Notice
    The Existing Regulations provide that public notice is presumed 
reasonable if published no fewer than 14 days before the hearing. The 
2008 Proposed Regulations proposed to shorten this minimum notice 
period from 14 days to seven days. The 2017 Proposed Regulations 
proposed to retain the 14-day period between notice and hearing, citing 
a statement in the legislative history of TEFRA referring to such a 
time period. Several commenters recommended shortening this minimum 
notice period to seven days before the public hearing, as proposed in 
2008. These commenters noted that, although a portion of the 
legislative history includes a reference to a 14-day notice period, the 
statute does not require it. Commenters also reasoned that the 
substantial increases in the speed at which information spreads to 
individual members of the public and advances in technology since the 
original enactment of this public approval requirement in 1982 should 
warrant a shorter public notice period. Accordingly, the Final 
Regulations adopt this comment. The Final Regulations treat notice as 
presumed to be reasonably designed to inform residents of an approving 
governmental unit if, among other things, the notice is given no fewer 
than seven days before the public hearing.
    The 2017 Proposed Regulations proposed to treat notice as presumed 
to be reasonably designed to inform residents of an approving 
governmental unit if, among other things, the notice was posted to the 
approving governmental unit's public website. Many commenters supported 
this proposed rule. Some commenters suggested modifications to this 
rule. Several commenters noted that issuers that issue bonds on behalf 
of a governmental unit may be unable to use this rule as proposed. The 
proposed rule would permit publication on the website of the approving 
governmental unit, but an on-behalf-of issuer (such as a constituted 
authority that acts on behalf of a city or county) may not have the 
authority to post content to the approving governmental unit's website. 
Commenters suggested permitting publication of a public notice on the 
website of the on-behalf-of issuer as an alternative to the website of 
the approving governmental unit. The Final Regulations adopt this 
comment. The Final Regulations provide that, for an issuer approval by 
an issuer that acts on behalf of a governmental unit, public notice may 
be posted on the public website of either the on-behalf-of issuer or 
the approving governmental unit.
    The 2017 Proposed Regulations required that, for public notices by 
website, a governmental unit also offer a reasonable alternative notice 
method for residents without access to the internet. Commenters 
presented evidence that more people regularly use the internet than use 
a particular newspaper, radio station, or television station. These 
commenters recommended removing the requirement for an alternative 
notice method in the case of publication by website. The Final 
Regulations adopt this comment and eliminate the requirement for an 
alternative method of obtaining the information in a website notice.
    Further, to address concerns that a public notice posted on a 
large, complex website may be difficult for the intended recipients of 
that public notice to locate, the Final Regulations clarify that a 
public notice must be posted on the governmental unit's primary public 
website in an area of that website that is used to inform its residents 
about events affecting the residents. In addition, issuers remain 
responsible for maintaining records showing that a public notice 
containing the requisite information was timely posted to an 
appropriate website. See Sec.  1.6001-1.
    The 2017 Proposed Regulations included a provision in Sec.  
1.147(f)-1(d)(4)(iv) that presumed notice to be reasonable if, among 
other things, the notice was given in a way permitted under a general 
state law for providing public notice of a public hearing held by the 
approving governmental unit. The 2017 Proposed Regulations also 
included a provision in Sec.  1.147(f)-1(d)(3) that treated a public 
hearing performed in compliance with state procedural requirements as 
meeting the public hearing requirements of section 147(f) except to the 
extent in conflict with a specific requirement of the proposed 
regulations. One commenter expressed a concern that these two 
provisions were inconsistent. The Treasury Department and the IRS have 
determined that these two provisions of the 2017 Proposed Regulations 
are not inconsistent. In this regard, Sec.  1.147(f)-1(d)(3) addresses 
public hearings and Sec.  1.147(f)-1(d)(4) addresses public notices. 
Upon consideration of this comment and in response to concerns raised 
about the accessibility of notices given under state laws, the Final 
Regulations clarify that notice given in a way a state permits under a 
general law must still be reasonably accessible to the residents of the 
approving governmental unit.

2. Section 1.147(f)-1(e): Applicable Elected Representative

    The 2017 Proposed Regulations provided that an applicable elected 
representative of the approving governmental unit may execute a public 
approval. The 2017 Proposed Regulations provided that the applicable 
elected representative of a governmental unit consists of any one of 
the following: (1) The governmental unit's elected legislative body; 
(2) the governmental unit's chief elected executive officer; (3) in the 
case of a state, the chief elected legal officer of the state's 
executive branch of government; or (4) any official elected by the 
voters of the governmental unit and designated by the governmental 
unit's chief elected executive officer or by state or local law to 
approve issues for the governmental unit. One commenter suggested 
expanding the definition of an applicable elected representative to 
include the chairman of the governing board of a conduit issuer, if 
that person is appointed by an elected official to execute public 
approvals and empowered to approve a bond resolution to authorize an 
issuance

[[Page 67688]]

of private activity bonds. The 2017 Proposed Regulations reflected the 
statutory definition of an applicable elected representative in section 
147(f). This statutory definition generally requires that an applicable 
elected representative be either an elected official or a body 
comprised of elected officials. Under section 147(f)(2)(E)(i), the 
statute allows an appointee of an elected official to serve as an 
applicable elected representative only in the event that the office of 
an applicable elected representative is vacated and only for the 
remaining term of the elected official who vacated that office. The 
Treasury Department and the IRS have determined that expanding the 
statutory definition of applicable elected representative to permit the 
appointee of an elected official to qualify as an applicable elected 
representative on a permanent basis would be inconsistent with the 
purpose and content of the statute. Accordingly, the Final Regulations 
adopt this provision as proposed.

3. Section 1.147(f)-1(f): Contents of Notice and Approval

    The 2017 Proposed Regulations provided that a project was within 
the scope of a public approval if the requisite public notice and the 
approval contained a general functional description of the project, the 
maximum stated principal amount of bonds to be issued to finance the 
project, the name of the initial owner or principal user of the 
project, and a general description of the project's location. The 2017 
Proposed Regulations further provided that a substantial deviation 
between the information required to be provided in the notice and 
approval and the actual use of proceeds of the issue generally would 
cause that issue to fail to meet the public approval requirement.
A. Contents of Notice and Approval: Maximum Stated Principal Amount of 
Bonds
    The 2017 Proposed Regulations provided that the public notice and 
public approval must include the maximum stated principal amount of the 
issue of private activity bonds to be issued to finance the project. 
The 2017 Proposed Regulations clarified that, if an issue financed 
multiple projects, the notice and approval must specify separately the 
maximum stated principal amount of bonds to be issued to finance each 
separate project. The 2017 Proposed Regulations further provided that a 
deviation between the maximum stated principal amount of bonds to be 
used to finance a project that is specified in the notice and approval 
and the stated principal amount of bonds actually used to finance that 
project is an insubstantial deviation if that actual stated principal 
amount is no more than ten percent (10%) greater than the amount in the 
notice and approval or any amount less than the amount in the notice 
and approval.
    One commenter suggested the notice and approval should require only 
the aggregate maximum stated principal amount of the bonds of the issue 
to be used to finance all of the projects financed by the issue. 
Another commenter similarly suggested that a deviation between the 
maximum stated principal amount of the bonds to be used to finance a 
project as provided in the notice and approval and the actual stated 
principal amount of the bonds so used be calculated with respect to the 
issue as a whole rather than individually for each project. The 
Treasury Department and the IRS have determined that the relative 
principal amounts within an issue to be spent on each separate project 
are relevant information for this public approval process. The 
approximate amount of money used to fund a particular project is 
evidence of the scope of that project and the project's potential 
impact on the local community. By contrast, the aggregate maximum 
stated principal amount of bonds financing all projects financed by an 
issue is essentially the stated principal amount of the issue and 
conveys little additional information about the relative scopes of the 
particular projects in multiple-project financings. Accordingly, the 
Final Regulations do not adopt these comments.
    One commenter suggested clarifying that the maximum stated 
principal amount of bonds used to finance a project may be determined 
on any reasonable basis and may take into account contingencies, such 
as cost overruns or failures to receive construction approvals, without 
regard to whether the occurrence of any such contingency is reasonably 
expected at the time of the notice or approval. Such a rule would give 
issuers the flexibility to account for uncertainties that may arise 
after the bonds are issued, and the prohibition against a substantial 
deviation would assure the accuracy of the public approval information 
to an acceptable degree. The Final Regulations adopt this comment.
    One commenter suggested changing the term ``maximum stated 
principal amount'' of bonds to ``maximum stated par amount'' of bonds. 
The Treasury Department and the IRS have determined that, for this 
purpose, these two terms have the same meaning. The Final Regulations 
do not adopt this comment and retain the term ``maximum stated 
principal amount'' as proposed.
B. Contents of Notice and Approval: Initial Owner or Principal User
    The 2017 Proposed Regulations provided that a project was within 
the scope of a public approval if the public notice and approval 
included the name of the expected initial legal owner or principal user 
of the project or, alternatively, the name of the true beneficial party 
of interest for such legal owner or user. One commenter suggested 
clarifying that a general partner of a partnership that owns a project 
may be treated as a true beneficial party of interest for this purpose. 
Recognizing that limited partnership ownership structures are common 
among exempt facilities under section 142, the Treasury Department and 
the IRS have determined that this clarification is warranted. 
Accordingly, the Final Regulations adopt this comment and include an 
example clarifying that a public notice and approval may name a general 
partner of an owner of a project as a true beneficial party of 
interest.
C. Contents of Notice and Approval: Project Location
    The Existing Regulations provide that a facility is within the 
scope of a public approval if the public notice and approval contain 
the prospective location of the facility by its street address or, if 
none, by a general description designed to inform readers of its 
specific location. The 2017 Proposed Regulations required that the 
public notice and approval include a general description of the 
prospective location of the project by street address, reference to 
boundary streets or other geographic boundaries, or other description 
of the specific geographic location that is reasonably designed to 
inform readers of the location. One commenter raised a concern that the 
phrase ``specific geographic location'' in the 2017 Proposed 
Regulations would be more restrictive than the language in the Existing 
Regulations and would be burdensome for projects located at well-known 
landmarks, which may be widely recognized by their public name but may 
not have a street address or identifiable geographic boundaries. The 
Treasury Department and the IRS do not agree with the comment because, 
as noted above, the 2017 Proposed Regulations and the Existing 
Regulations both call for a general description of the specific 
location. The

[[Page 67689]]

Final Regulations adopt this provision as proposed.
D. Special Rule for Pooled Financings With Qualified 501(c)(3) Bonds
    For qualified 501(c)(3) bonds issued to finance pooled loan 
programs that are described in section 147(b)(4)(B), the 2017 Proposed 
Regulations provided a special, two-stage public approval process. At 
the time that such bonds are issued, the issuer may have only limited 
information about the projects to be financed. Thus, for the first 
stage of public approvals occurring before the qualified 501(c)(3) 
bonds are issued, the 2017 Proposed Regulations allowed the public 
notice and approval to include limited general information about 
projects to be financed, such as the maximum stated principal amount of 
bonds expected to finance loans to section 501(c)(3) organizations or 
governmental units and a general description of the types of projects 
to be financed with those loans (for example, hospital facilities or 
college facilities). For the second stage of public approvals for these 
financings, before the issuer originates a loan to a section 501(c)(3) 
organization or governmental unit, the 2017 Proposed Regulations 
required a supplemental public approval satisfying the ordinary 
requirements of section 147(f) for the bonds financing that loan. One 
commenter recommended that no host approval be required at the time of 
the limited pre-issuance public approval before the qualified 501(c)(3) 
bonds are issued because the specific project information may be 
unknown at that time. The Final Regulations adopt this comment. Under 
the Final Regulations, for this type of financing, an issuer may either 
meet the general rules on the public approval requirement or, 
alternatively, at the issuer's option, may meet the special rules for a 
two-stage public approval process that reflects adoption of this 
comment. In particular, under this optional two-stage public approval 
process, a pre-issuance issuer approval is required and a supplemental 
post-issuance public approval, including issuer approval and host 
approval, is required.
E. Timing of Hearing and Approval
    The 2017 Proposed Regulations provided a safe harbor for the 
minimum period of time between a notice of public hearing and the 
public hearing. The 2017 Proposed Regulations also provided that the 
approved bonds must be issued within a certain period of time after the 
public approval. Neither the Existing Regulations nor the 2017 Proposed 
Regulations restrict the period of time between a public hearing and a 
public approval. One commenter suggested that the Final Regulations 
impose a one-year maximum time period between a public hearing and a 
valid public approval. The Treasury Department and the IRS have 
determined that, although a period of one year between a public hearing 
and a public approval is reasonable, a longer period may be reasonable 
in some circumstances. Further, no such maximum period was proposed. 
Accordingly, the Final Regulations do not adopt this comment.

4. Section 1.147(f)-1(g): Definitions

    The Existing Regulations define a facility to mean a tract or 
adjoining tracts of land, the improvements thereon, and any personal 
property used in connection with such real property. The Existing 
Regulations further provide that non-adjoining tracts of land may be 
treated as one facility only if they are used in an ``integrated 
operation.'' The 2017 Proposed Regulations use the term ``project'' 
rather than ``facility'' and generally define a project as one or more 
capital projects or facilities, including land, buildings, equipment, 
and other property, to be financed with an issue, that are located on 
the same site, or adjacent or proximate sites used for similar 
purposes. This proposed definition of project was intended to afford 
flexibility for a single project to extend beyond a single tract or 
adjoining tracts of land, such as the case of a college campus on 
adjacent or proximate sites. Because of the potential difficulty of 
determining whether facilities are used in an integrated operation, the 
2017 Proposed Regulations proposed to remove the provision of the 
Existing Regulations that allowed financed assets on non-adjoining 
tracts of land to be treated as one facility if those assets were used 
in an integrated operation.
    One commenter noted that, under the 2017 Proposed Regulations, two 
financed properties that are located on non-proximate sites could not 
be part of a single project, whereas two such financed properties could 
be part of a single facility under the Existing Regulations if the 
properties were part of an integrated operation. The commenter 
suggested that this aspect of the definition of project in the 2017 
Proposed Regulations was more burdensome than the definition of 
facility in the Existing Regulations. In general, the 2017 Proposed 
Regulations would provide greater flexibility to permit a greater 
physical distance between the sites included in a project than would 
the Existing Regulations, as the 2017 Proposed Regulations would permit 
a single project to include financed property at sites that are 
proximate but not adjoining. The Final Regulations generally adopt this 
more flexible definition of project from the 2017 Proposed Regulations. 
In addition, to address this commenter's concern, the Final Regulations 
also retain the longstanding ``integrated operations'' standard from 
the Existing Regulations to allow capital projects or facilities that 
are located on non-proximate sites to be treated as a one project if 
those capital projects or facilities are used in an integrated 
operation.
    The same commenter also suggested adopting the very broad 
definition of project from a different context involving mixed-use 
projects under Sec.  1.141-6(a)(3), which generally includes any 
facilities or capital projects financed in whole or in part with 
proceeds of the issue. The commenter reasoned that the requirement in 
the 2017 Proposed Regulations that the public notice and approval 
include the maximum stated principal amount of the issue to be used to 
finance each project would lock an issuer into a specific allocation of 
bond proceeds to the project as defined in section 147(f), whereas 
Sec.  1.141-6 would permit floating allocations of bond proceeds to 
financed property in certain cases. These two definitions of project 
serve rules with different purposes, and the different definitions 
reflect those purposes. The Treasury Department and the IRS have 
determined that, if the public notice and approval presented this 
information as an aggregate of all property financed by the issue, 
members of the public and approving officials would be unable to 
extract and evaluate the portions of the aggregate relevant to their 
respective roles in the public approval process. The Final Regulations 
do not adopt this comment.

5. Section 1.147(f)-1(h): Applicability of the Final Regulations

    The Final Regulations apply to bonds issued pursuant to a public 
approval occurring on or after April 1, 2019. In addition, in response 
to public comments, an issuer may apply the provisions of Sec.  
1.147(f)-1(f)(6) of the Final Regulations (regarding deviations in 
public approval information) in whole, but not in part, to bonds issued 
pursuant to a public approval occurring before April 1, 2019.

Special Analyses

    This regulation is not subject to review under section 6(b) of 
Executive Order 12866 pursuant to the Memorandum of Agreement (April 
11,

[[Page 67690]]

2018) between the Department of the Treasury and the Office of 
Management and Budget regarding review of tax regulations. It is hereby 
certified that these regulations will not have a significant economic 
impact on a substantial number of small entities. The Existing 
Regulations provide guidance on the minimum informational content, 
procedures, and timing for the statutorily required public notices, 
public hearings, and public approvals. Although the Final Regulations 
are expected to affect a significant number of small state or local 
governmental units that issue tax-exempt private activity bonds, the 
Final Regulations are not expected to have a significant economic 
effect on those governmental units because the Final Regulations 
generally would streamline and simplify the Existing Regulations in 
various respects to reduce the administrative burdens of meeting the 
statutory public approval requirement. For example, the Final 
Regulations, unlike the Existing Regulations, would permit publication 
of public notice by website to reduce costs associated with print 
publication or radio or television broadcast, reduce the information 
required to be contained in public notice and public approval for 
certain types of bonds, liberalize the consequences of insubstantial 
changes in project information, and permit curative actions to address 
certain circumstances in which finished projects differ from 
descriptions provided in the public notice or public approval. 
Accordingly, a regulatory flexibility analysis is not required. 
Pursuant to section 7805(f) of the Code, the 2017 Proposed Regulations 
preceding the Final Regulations were submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business. No comments were received.

Drafting Information

    The principal authors of these regulations are Spence Hanemann of 
the Office of Associate Chief Counsel (Financial Institutions and 
Products) and Vicky Tsilas, formerly of the Office of Associate Chief 
Counsel (Financial Institutions and Products). However, other personnel 
from the Treasury Department and the IRS participated in their 
development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 5f

    Income taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 5f are amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *


0
Par. 2. Section 1.147(f)-1 is added to read as follows:


Sec.  1.147(f)-1   Public approval of private activity bonds.

    (a) In general. Interest on a private activity bond is excludable 
from gross income under section 103(a) only if the bond meets the 
requirements for a qualified bond as defined in section 141(e) and 
other applicable requirements provided in section 103. In order to be a 
qualified bond as defined in section 141(e), among other requirements, 
a private activity bond must meet the requirements of section 147(f). A 
private activity bond meets the requirements of section 147(f) only if 
the bond is publicly approved pursuant to paragraph (b) of this section 
or the bond qualifies for the exception for refunding bonds in section 
147(f)(2)(D).
    (b) Public approval requirement--(1) In general. Except as 
otherwise provided in this section, a bond meets the requirements of 
section 147(f) if, before the issue date, the issue of which the bond 
is a part receives issuer approval and host approval (each a public 
approval) as defined in paragraphs (b)(2) and (3) of this section in 
accordance with the method and process set forth in paragraphs (c) 
through (f) of this section.
    (2) Issuer approval. Except as otherwise provided in this section, 
issuer approval means an approval that meets the requirements of this 
paragraph (b)(2). Either the governmental unit that issues the issue or 
the governmental unit on behalf of which the issue is issued must 
approve the issue. For this purpose, Sec.  1.103-1 applies to the 
determination of whether an issuer issues bonds on behalf of another 
governmental unit. If an issuer issues bonds on behalf of more than one 
governmental unit (for example, in the case of an authority that acts 
for two counties), any one of those governmental units may provide the 
issuer approval.
    (3) Host approval. Except as otherwise provided in this section, 
host approval means an approval that meets the requirements of this 
paragraph (b)(3). Each governmental unit the geographic jurisdiction of 
which contains the site of a project to be financed by the issue must 
approve the issue. If, however, the entire site of a project to be 
financed by the issue is within the geographic jurisdiction of more 
than one governmental unit within a State (counting the State as a 
governmental unit within such State), then any one of those 
governmental units may provide host approval for the issue for that 
project. For purposes of the host approval, if a project to be financed 
by the issue is located within the geographic jurisdiction of two or 
more governmental units but not entirely within any one of those 
governmental units, each portion of the project that is located 
entirely within the geographic jurisdiction of the respective 
governmental units may be treated as a separate project. The issuer 
approval provided pursuant to paragraph (b)(2) of this section may be 
treated as a host approval if the governmental unit providing the 
issuer approval is also a governmental unit eligible to provide the 
host approval pursuant to this section.
    (4) Special rule for host approval of airports or high-speed 
intercity rail facilities. Pursuant to a special rule in section 
147(f)(3), if the proceeds of an issue are to be used to finance a 
project that consists of either facilities located at an airport 
(within the meaning of section 142(a)(1)) or high-speed intercity rail 
facilities (within the meaning of section 142(a)(11)) and the issuer of 
that issue is the owner or operator of the airport or high-speed 
intercity rail facilities, the issuer is the only governmental unit 
that is required to provide the host approval for that project.
    (5) Special rule for issuer approval of scholarship funding bond 
issues and volunteer fire department bond issues. In the case of a 
qualified scholarship funding bond as defined in section 150(d)(2), the 
governmental unit that made a request described in section 150(d)(2)(B) 
with respect to the issuer of the bond is the governmental unit on 
behalf of which the bond was issued for purposes of the issuer 
approval. If more than one governmental unit within a State made a 
request described in section 150(d)(2)(B), the State or any such 
requesting governmental unit may be treated as the governmental unit on 
behalf of which the bond was issued for purposes of the issuer 
approval. In the case of a bond of a volunteer fire department treated 
as a bond of a political subdivision of a State under

[[Page 67691]]

section 150(e), the political subdivision described in section 
150(e)(2)(B) with respect to that volunteer fire department is the 
governmental unit on behalf of which the bond is issued for purposes of 
the issuer approval.
    (6) Special rules for host approval of mortgage revenue bonds, 
student loan bonds, and certain qualified 501(c)(3) bonds. In the case 
of a mortgage revenue bond (as defined in paragraph (g)(5) of this 
section), a qualified student loan bond as defined in section 144(b), 
and the portion of an issue of qualified 501(c)(3) bonds as defined in 
section 145 that finances working capital expenditures, the issue or 
portion of the issue must receive an issuer approval but no host 
approval is necessary. See also paragraph (f)(5) of this section, 
providing certain optional alternative special rules for certain 
qualified 501(c)(3) bonds for pooled loan financings described in 
section 147(b)(4)(B).
    (c) Method of public approval. The method of public approval of an 
issue must satisfy either paragraph (c)(1) or (2) of this section. An 
approval may satisfy the requirements of this paragraph (c) without 
regard to the authority under State or local law for the acts 
constituting that approval.
    (1) Applicable elected representative. An applicable elected 
representative of the approving governmental unit approves the issue 
following a public hearing for which there was reasonable public 
notice.
    (2) Voter referendum. A voter referendum of the approving 
governmental unit approves the issue.
    (d) Public hearing and reasonable public notice--(1) Public 
hearing. Public hearing means a forum providing a reasonable 
opportunity for interested individuals to express their views, orally 
or in writing, on the proposed issue of bonds and the location and 
nature of the proposed project to be financed.
    (2) Location of the public hearing. The public hearing must be held 
in a location that, based on the facts and circumstances, is convenient 
for residents of the approving governmental unit. The location of the 
public hearing is presumed convenient for residents of the unit if the 
public hearing is located in the approving governmental unit's capital 
or seat of government. If more than one governmental unit is required 
to hold a public hearing, the hearings may be combined as long as the 
combined hearing affords the residents of all of the participating 
governmental units a reasonable opportunity to be heard. The location 
of any combined hearing is presumed convenient for residents of each 
participating governmental unit if it is no farther than 100 miles from 
the seat of government of each participating governmental unit beyond 
whose geographic jurisdiction the hearing is conducted.
    (3) Procedures for conducting the public hearing. In general, a 
governmental unit may select its own procedure for a public hearing, 
provided that interested individuals have a reasonable opportunity to 
express their views. Thus, a governmental unit may impose reasonable 
requirements on persons who wish to participate in the hearing, such as 
a requirement that persons desiring to speak at the hearing make a 
written request to speak at least 24 hours before the hearing or that 
they limit their oral remarks to a prescribed time. For this purpose, 
it is unnecessary, for example, that the applicable elected 
representative of the approving governmental unit be present at the 
hearing, that a report on the hearing be submitted to that applicable 
elected representative, or that State administrative procedural 
requirements for public hearings be observed. Except to the extent 
State procedural requirements for public hearings are in conflict with 
a specific requirement of this section, a public hearing performed in 
compliance with State procedural requirements satisfies the 
requirements for a public hearing in this paragraph (d). A public 
hearing may be conducted by an individual appointed or employed to 
perform such function by the governmental unit or its agencies, or by 
the issuer. Thus, for example, for bonds to be issued by an authority 
that acts on behalf of a county, the hearing may be conducted by the 
authority, the county, or an appointee of either.
    (4) Reasonable public notice. Reasonable public notice means notice 
that is reasonably designed to inform residents of an approving 
governmental unit, including the issuing governmental unit and the 
governmental unit in whose geographic jurisdiction a project is to be 
located, of the proposed issue. The notice must state the time and 
place for the public hearing and contain the information required by 
paragraph (f)(2) of this section. Notice is presumed to be reasonably 
designed to inform residents of an approving governmental unit if it 
satisfies the requirements of this paragraph (d)(4) and is given no 
fewer than seven (7) calendar days before the public hearing in one or 
more of the ways set forth in paragraphs (d)(4)(i) through (iv) of this 
section.
    (i) Newspaper publication. Public notice may be given by 
publication in one or more newspapers of general circulation available 
to the residents of the governmental unit.
    (ii) Radio or television broadcast. Public notice may be given by 
radio or television broadcast to the residents of the governmental 
unit.
    (iii) Governmental unit website posting. Public notice may be given 
by electronic posting on the approving governmental unit's primary 
public website in an area of that website used to inform its residents 
about events affecting the residents (for example, notice of public 
meetings of the governmental unit). In the case of an issuer approval 
of an issue issued by an on-behalf-of issuer that acts on behalf of a 
governmental unit, such notice may be posted on the public website of 
the on-behalf-of issuer as an alternative to the public website of the 
approving governmental unit.
    (iv) Alternative State law public notice procedures. Public notice 
may be given in a way that is permitted under a general State law for 
public notices for public hearings for the approving governmental unit, 
provided that the public notice is reasonably accessible.
    (e) Applicable elected representative--(1) In general--(i) 
Definition of applicable elected representative. The applicable elected 
representative of a governmental unit means--
    (A) The governmental unit's elected legislative body;
    (B) The governmental unit's chief elected executive officer;
    (C) In the case of a State, the chief elected legal officer of the 
State's executive branch of government; or
    (D) Any official elected by the voters of the governmental unit and 
designated for purposes of this section by the governmental unit's 
chief elected executive officer or by State or local law to approve 
issues for the governmental unit.
    (ii) Elected officials. For purposes of paragraphs (e)(1)(i)(B), 
(C), and (D) of this section, an official is considered elected only if 
that official is popularly elected at-large by the voters of the 
governmental unit. If an official popularly elected at-large by the 
voters of a governmental unit is appointed or selected pursuant to 
State or local law to be the chief executive officer of the unit, that 
official is deemed to be an elected chief executive officer for 
purposes of this section but for no longer than the official's tenure 
as an official popularly elected at-large.
    (iii) Legislative bodies. In the case of a bicameral legislature 
that is popularly elected, both chambers together constitute an 
applicable elected representative. Absent designation

[[Page 67692]]

under paragraph (e)(1)(i)(D) of this section, however, neither such 
chamber independently constitutes an applicable elected representative. 
If multiple elected legislative bodies of a governmental unit have 
independent legislative authority, the body with the more specific 
authority relating to the issue is the only legislative body that is 
treated as an elected legislative body under paragraph (e)(1)(i)(A) of 
this section.
    (2) Governmental unit with no applicable elected representative--
(i) In general. The applicable elected representatives of a 
governmental unit with no applicable elected representative (but for 
this paragraph (e)(2) and section 147(f)(2)(E)(ii)) are the applicable 
elected representatives of the next higher governmental unit (with an 
applicable elected representative) from which the governmental unit 
derives its authority. Except as otherwise provided in this section, 
any governmental unit from which the governmental unit with no 
applicable elected representative derives its authority may be treated 
as the next higher governmental unit without regard to the relative 
status of such higher governmental unit under State law. A governmental 
unit derives its authority from another governmental unit that--
    (A) Enacts a specific law (for example, a provision in a State 
constitution, charter, or statute) by or under which the governmental 
unit is created;
    (B) Otherwise empowers or approves the creation of the governmental 
unit; or
    (C) Appoints members to the governing body of the governmental 
unit.
    (ii) Host approval. For purposes of a host approval, a governmental 
unit may be treated as the next higher governmental unit only if the 
project is located within its geographic jurisdiction and eligible 
residents of the unit are entitled to vote for its applicable elected 
representatives.
    (3) On behalf of issuers. In the case of an issuer that issues 
bonds on behalf of a governmental unit, the applicable elected 
representative is any applicable elected representative of the 
governmental unit on behalf of which the bonds are issued.
    (f) Public approval process--(1) In general. The public approval 
process for an issue, including scope, content, and timing of the 
public approval, must meet the requirements of this paragraph (f). A 
governmental unit must timely approve either each project to be 
financed with proceeds of the issue or a plan of financing for each 
project to be financed with proceeds of the issue.
    (2) General rule on information required for a reasonable public 
notice and public approval. Except as otherwise provided in this 
section, a project to be financed with proceeds of an issue is within 
the scope of a public approval under section 147(f) if the reasonable 
public notice of the public hearing, if applicable, and the public 
approval (together the notice and approval) include the information set 
forth in paragraphs (f)(2)(i) through (iv) of this section.
    (i) The project. The notice and approval must include a general 
functional description of the type and use of the project to be 
financed with the issue. For this purpose, a project description is 
sufficient if it identifies the project by reference to a particular 
category of exempt facility bond to be issued (for example, an exempt 
facility bond for an airport pursuant to section 142(a)(1)) or by 
reference to another general category of private activity bond together 
with information on the type and use of the project to be financed with 
the issue (for example, a qualified small issue bond as defined in 
section 144(a) for a manufacturing facility or a qualified 501(c)(3) 
bond as defined in section 145 for a hospital facility and working 
capital expenditures).
    (ii) The maximum stated principal amount of the issue. The notice 
and approval must include the maximum stated principal amount of the 
issue of private activity bonds to be issued to finance the project or 
projects. If an issue finances multiple projects (for example, 
facilities at different locations on non-proximate sites that are not 
treated as part of the same project), the notice and approval must 
specify separately the maximum stated principal amount of bonds to be 
issued to finance each separate project to be financed as part of the 
issue. The maximum stated principal amount of bonds to be issued to 
finance a project may be determined on any reasonable basis and may 
take into account contingencies, without regard to whether the 
occurrence of any such contingency is reasonably expected at the time 
of the notice.
    (iii) The name of the initial legal owner or principal user of the 
project. The notice and approval must include the name of either the 
expected initial legal owner or principal user (within the meaning of 
section 144(a)) of the project or, alternatively, the name of a 
significant true beneficial party of interest for such legal owner or 
user (for example, the name of a section 501(c)(3) organization that is 
the sole member of a limited liability company that is the legal owner 
or the name of a general partner of a partnership that owns the 
project).
    (iv) The location of the project. The notice and approval must 
include a general description of the prospective location of the 
project by street address, reference to boundary streets or other 
geographic boundaries, or other description of the specific geographic 
location that is reasonably designed to inform readers of the location. 
For a project involving multiple capital projects or facilities located 
on the same site, or on adjacent or reasonably proximate sites with 
similar uses, a consolidated description of the location of those 
capital projects or facilities provides a sufficient description of the 
location of the project. For example, a project for a section 501(c)(3) 
educational entity involving multiple buildings on the entity's main 
urban college campus may describe the location of the project by 
reference to the outside street boundaries of that campus with a 
reference to any noncontiguous features of that campus.
    (3) Special rule for mortgage revenue bonds. Mortgage loans 
financed by mortgage revenue bonds are within the scope of a public 
approval if the notice and approval state that the bonds are to be 
issued to finance residential mortgages, provide the maximum stated 
principal amount of mortgage revenue bonds expected to be issued, and 
provide a general description of the geographic jurisdiction in which 
the residences to be financed with the proceeds of the mortgage revenue 
bonds are expected to be located (for example, residences located 
throughout a State for an issuer with a statewide jurisdiction or 
residences within a particular local geographic jurisdiction, such as 
within a city or county, for a local issuer). For this purpose, in the 
case of mortgage revenue bonds, no information is required on specific 
names of mortgage loan borrowers or specific locations of individual 
residences to be financed.
    (4) Special rule for qualified student loan bonds. Qualified 
student loans financed by qualified student loan bonds as defined in 
section 144(b) are within the scope of a public approval if the notice 
and approval state that the bonds will be issued to finance student 
loans and state the maximum stated principal amount of qualified 
student loan bonds expected to be issued for qualified student loans. 
For this purpose, in the case of qualified student loan bonds, no 
information is required with respect to names of specific student loan 
borrowers.
    (5) Special rule for certain qualified 501(c)(3) bonds. Qualified 
501(c)(3)

[[Page 67693]]

bonds issued pursuant to section 145 for pooled loan financings that 
are described in section 147(b)(4)(B) (without regard to any election 
under section 147(b)(4)(A)) are within the scope of a public approval 
if the public approval either meets the general requirements of 
paragraph (b) of this section or, alternatively, at the issuer's 
option, meets the special requirements of paragraphs (f)(5)(i) and (ii) 
of this section.
    (i) Pre-issuance issuer approval. Within the time period required 
by paragraph (f)(7) of this section, an issuer approval is obtained 
after reasonable public notice of a public hearing is provided and a 
public hearing is held. For this purpose, a project is treated as 
described in the notice and approval if the notice and approval provide 
that the bonds will be qualified 501(c)(3) bonds to be used to finance 
loans described in section 147(b)(4)(B), state the maximum stated 
principal amount of bonds expected to be issued to finance loans to 
section 501(c)(3) organizations or governmental units as described in 
section 147(b)(4)(B), provide a general description of the type of 
project to be financed with such loans (for example, loans for hospital 
facilities or college facilities), and state that an additional public 
approval that includes specific project information will be obtained 
before any such loans are originated.
    (ii) Post-issuance public approval for specific loans. Before a 
loan described in section 147(b)(4)(B) is originated, a supplemental 
public approval, including issuer approval and host approval, for the 
bonds to be used to finance that loan is obtained that meets all the 
requirements of section 147(f) and the requirements for a public 
approval in paragraph (b) of this section. This post-issuance 
supplemental public approval requirement applies by treating the bonds 
to be used to finance such loan as if they were reissued for purposes 
of section 147(f) (without regard to paragraph (f)(5) of this section). 
For this purpose, proceeds to be used to finance such loan do not 
include the portion of the issue used to finance a common reserve fund 
or common costs of issuance.
    (6) Deviations in public approval information--(i) In general. 
Except as otherwise provided in this section, a substantial deviation 
between the stated use or amount of proceeds of an issue included in 
the information required to be provided in the notice and approval 
(public approval information) and the actual use or amount of proceeds 
of the issue causes that issue to fail to meet the public approval 
requirement. Conversely, insubstantial deviations between the stated 
use or amount of proceeds of an issue included in the public approval 
information and the actual use or amount of proceeds of the issue do 
not cause such a failure. In general, the determination of whether a 
deviation is substantial is based on all the facts and circumstances. 
In all events, however, a change in the fundamental nature or type of a 
project is a substantial deviation.
    (ii) Certain insubstantial deviations in public approval 
information. The following deviations from the public approval 
information in the notice and approval are treated as insubstantial 
deviations:
    (A) Size of bond issue and use of proceeds. A deviation between the 
maximum stated principal amount of a proposed issuance of bonds to 
finance a project that is specified in public approval information and 
the actual stated principal amount of bonds issued and used to finance 
that project is an insubstantial deviation if that actual stated 
principal amount is no more than ten percent (10%) greater than that 
maximum stated principal amount or is any amount less than that maximum 
stated principal amount. In addition, the use of proceeds to pay 
working capital expenditures directly associated with any project 
specified in the public approval information is an insubstantial 
deviation.
    (B) Initial legal owner or principal user. A deviation between the 
initial legal owner or principal user of the project named in the 
notice and approval and the actual initial legal owner or principal 
user of the project is an insubstantial deviation if such parties are 
related parties on the issue date of the issue.
    (iii) Supplemental public approval to cure certain substantial 
deviations in public approval information. A substantial deviation 
between the stated use or amount of proceeds of an issue included in 
the public approval information and the actual use or amount of the 
proceeds of the issue does not cause that issue to fail to meet the 
public approval requirement if all of the following requirements are 
met:
    (A) Original public approval and reasonable expectations. The issue 
met the requirements for a public approval in paragraph (b) of this 
section. In addition, on the issue date of the issue, the issuer 
reasonably expected there would be no substantial deviations between 
the stated use or amount of proceeds of an issue included in the public 
approval information and the actual use or amount of the proceeds of 
the issue.
    (B) Unexpected events or unforeseen changes in circumstances. As a 
result of unexpected events or unforeseen changes in circumstances that 
occur after the issue date of the issue, the issuer determines to use 
proceeds of the issue in a manner or amount not provided in a public 
approval.
    (C) Supplemental public approval. Before using proceeds of the 
bonds in a manner or amount not provided in a public approval, the 
issuer obtains a supplemental public approval for those bonds that 
meets the public approval requirement in paragraph (b) of this section. 
This supplemental public approval requirement applies by treating those 
bonds as if they were reissued for purposes of section 147(f).
    (7) Certain timing requirements. Public approval of an issue is 
timely only if the issuer obtains the public approval within one year 
before the issue date of the issue. Public approval of a plan of 
financing is timely only if the issuer obtains public approval for the 
plan of financing within one year before the issue date of the first 
issue issued under the plan of financing and the issuer issues all 
issues under the plan of financing within three years after the issue 
date of such first issue.
    (g) Definitions. The definitions in this paragraph (g) apply for 
purposes of this section. In addition, the general definitions in Sec.  
1.150-1 apply for purposes of this section.
    (1) Geographic jurisdiction means the area encompassed by the 
boundaries prescribed by State or local law for a governmental unit or, 
if there are no such boundaries, the area in which a unit may exercise 
such sovereign powers that make that unit a governmental unit for 
purposes of Sec.  1.103-1 and this section.
    (2) Governmental unit has the meaning of ``State or local 
governmental unit'' as defined in Sec.  1.103-1. Thus, a governmental 
unit is a State, territory, a possession of the United States, the 
District of Columbia, or any political subdivision thereof.
    (3) Host approval is defined in paragraph (b)(3) of this section.
    (4) Issuer approval is defined in paragraph (b)(2) of this section.
    (5) Mortgage revenue bonds mean qualified mortgage bonds as defined 
in section 143(a), qualified veterans' mortgage bonds as defined in 
section 143(b), or refunding bonds issued to finance mortgages of 
owner-occupied residences pursuant to applicable law in effect prior to 
enactment of section 143(a) or section 143(b).
    (6) Proceeds means ``proceeds'' as defined in Sec.  1.141-1(b), 
except that it does not include disposition proceeds.

[[Page 67694]]

    (7) Project generally means one or more capital projects or 
facilities, including land, buildings, equipment, and other property, 
to be financed with an issue, that are located on the same site, or 
adjacent or proximate sites used for similar purposes, and that are 
subject to the public approval requirement of section 147(f). Capital 
projects or facilities that are not located on the same site or 
adjacent or proximate sites may be treated as one project if those 
capital projects or facilities are used in an integrated operation. For 
an issue of mortgage revenue bonds or an issue of qualified student 
loan bonds as defined in section 144(b), the term project means the 
mortgage loans or qualified student loans to be financed with the 
proceeds of the issue. For an issue of qualified 501(c)(3) bonds as 
defined in section 145, the term project means a project as defined in 
the first sentence of this definition, and also is deemed to include 
working capital expenditures to be financed with proceeds of the issue.
    (8) Public approval information is defined in paragraph (f)(6)(i) 
of this section.
    (9) Public hearing is defined in paragraph (d)(1) of this section.
    (10) Reasonable public notice is defined in paragraph (d)(4) of 
this section.
    (11) Voter referendum means a vote by the voters of the affected 
governmental unit conducted in the same manner and time as voter 
referenda on matters relating to governmental spending or bond 
issuances by the governmental unit under applicable State and local 
law.
    (h) Applicability date. This section applies to bonds issued 
pursuant to a public approval occurring on or after April 1, 2019. For 
bonds issued pursuant to a public approval occurring before April 1, 
2019, see Sec.  5f.103-2 as contained in 26 CFR part 5f, revised as of 
April 1, 2018. In addition, an issuer may apply the provisions of 
paragraph (f)(6) of this section in whole, but not in part, to bonds 
issued pursuant to a public approval occurring before April 1, 2019.

PART 5f--TEMPORARY INCOME TAX REGULATIONS UNDER THE TAX EQUITY AND 
FISCAL RESPONSIBILITY ACT OF 1982

0
Par. 3. The authority citation for part 5f continues to read in part as 
follows:

    Authority: 26 U.S.C. 7805 * * *


Sec.  5f.103-2  [Removed]

0
Par. 4. Section 5f.103-2 is removed.

Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
    Approved: November 1, 2018.

David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2018-28371 Filed 12-28-18; 8:45 am]
 BILLING CODE 4830-01-P