Proposed Rule2026-11102
Guidance on Tax-Exempt Refunding Bonds; Hearing
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 3, 2026
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains proposed regulations that would update certain arbitrage rules and definitions applicable to tax-exempt and other tax-advantaged bonds by clarifying the time and manner for requesting refunds of overpayment of rebate to the United States, the special transition rule for transferred proceeds, the limitation on allocations to expenditures, and the IRS address for filing defeasance notices. These proposed regulations would also revise the provision addressing certain perpetual State guarantee funds, the definition of tax-exempt bond, and the definition of refunding issue. The proposed regulations would affect issuers of tax-advantaged bonds.
Full Text
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<title>Federal Register, Volume 91 Issue 106 (Wednesday, June 3, 2026)</title>
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[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]
[Proposed Rules]
[Pages 33129-33130]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11102]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-117298-21]
RIN 1545-BQ20
Guidance on Tax-Exempt Refunding Bonds; Hearing
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking; notice of hearing.
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SUMMARY: This document contains proposed regulations that would update
certain arbitrage rules and definitions applicable to tax-exempt and
other tax-advantaged bonds by clarifying the time and manner for
requesting refunds of overpayment of rebate to the United States, the
special transition rule for transferred proceeds, the limitation on
allocations to expenditures, and the IRS address for filing defeasance
notices. These proposed regulations would also revise the provision
addressing certain perpetual State guarantee funds, the definition of
tax-exempt bond, and the definition of refunding issue. The proposed
regulations would affect issuers of tax-advantaged bonds.
DATES: The hearing on these proposed regulations has been scheduled for
Thursday, July 30, 2026, at 10:00 a.m. Eastern Time (ET). The IRS must
receive speakers' outlines of the topics to be discussed at the hearing
by June 15, 2026. If no outlines are received by June 15, 2026, the
hearing will be cancelled.
ADDRESSES: The hearing is being held in the Auditorium, at the Internal
Revenue Service Building, 1111 Constitution Avenue NW, Washington, DC.
Due to security procedures, visitors must enter at the Constitution
Avenue entrance. In addition, all visitors must present a valid photo
identification to enter the building. Because of access restrictions,
visitors will not be admitted beyond the immediate entrance area more
than 30 minutes before the hearing starts. Participants may
alternatively attend the hearing by telephone.
Send an outline of topic submission electronically via the Federal
eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> (indicate IRS and REG-117298-
21). Send paper submissions to CC:PA:01:PR, (REG-117298-21), Room 5503,
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Brian Choi of the Office of Associate Chief Counsel (Financial
Institutions and Products), (202) 317-3154 (not a toll-free number);
concerning submissions of requests to testify, attend, or to be placed
on the building access list to attend the hearing, the Publications and
Regulations Section at (202) 317-6901 (not toll-free number) or by
email at <a href="/cdn-cgi/l/email-protection#86f6f3e4eaefe5eee3e7f4efe8e1f5c6eff4f5a8e1e9f0"><span class="__cf_email__" data-cfemail="8ffffaede3e6ece7eaeefde6e1e8fccfe6fdfca1e8e0f9">[email protected]</span></a> (preferred).
SUPPLEMENTARY INFORMATION: The subject of the hearing is the notice of
proposed rulemaking (REG-117298-21) published in the Federal Register
on Thursday, March 12, 2026 (91 FR 12118).
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Individuals
who wish to present oral comments at the hearing must submit an outline
of the topics to be discussed and the time to be devoted to each topic
by June 15, 2026. A period of 10 minutes will be allotted to each
testimony.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed. Copies of the
agenda will be available free of charge at the hearing and via the
Federal eRulemaking Portal (<a href="http://www.regulations.gov">www.regulations.gov</a>) under the title of
Supporting & Related Material. If no outline of the topics to be
discussed at the hearing is received by June 15, 2026, the hearing will
be cancelled. If the hearing is cancelled, a notice of cancellation of
the hearing will be published in the Federal Register.
Individuals who want to testify in person at the hearing must send
an email to <a href="/cdn-cgi/l/email-protection#4f3f3a2d23262c272a2e3d2621283c0f263d3c61282039"><span class="__cf_email__" data-cfemail="59292c3b35303a313c382b30373e2a19302b2a773e362f">[email protected]</span></a> to have their name added to the
building access list. The subject line of the email must contain the
regulation number REG-117298-21 and the language TESTIFY In Person. For
example, the subject line may say: Request to TESTIFY In Person at
Hearing for REG-117298-21.
Individuals who want to testify by telephone at the hearing must
send an email to <a href="/cdn-cgi/l/email-protection#ddada8bfb1b4beb5b8bcafb4b3baae9db4afaef3bab2ab"><span class="__cf_email__" data-cfemail="e8989d8a84818b808d899a81868f9ba8819a9bc68f879e">[email protected]</span></a> to receive the telephone number
and access code for the hearing. The subject line of the email must
contain the regulation number REG-117298-21 and the language TESTIFY
Telephonically. For example, the subject line may say: Request to
TESTIFY Telephonically at Hearing for REG-117298-21.
Individuals who want to attend the hearing in person without
testifying must also send an email to <a href="/cdn-cgi/l/email-protection#49393c2b25202a212c283b20272e3a09203b3a672e263f"><span class="__cf_email__" data-cfemail="88f8fdeae4e1ebe0ede9fae1e6effbc8e1fafba6efe7fe">[email protected]</span></a> to have
their name added to the building access list. The subject line of the
email must contain the regulation number REG-117298-21 and the language
ATTEND In Person. For example, the subject line may say: Request to
ATTEND Hearing In Person for REG-117298-21. Requests to attend the
hearing must be received by July 28, 2026, 5:00 p.m. ET.
Individuals who want to attend the hearing by telephone without
testifying must also send an email to <a href="/cdn-cgi/l/email-protection#94e4e1f6f8fdf7fcf1f5e6fdfaf3e7d4fde6e7baf3fbe2"><span class="__cf_email__" data-cfemail="1f6f6a7d73767c777a7e6d7671786c5f766d6c31787069">[email protected]</span></a> to receive
the telephone number and access code for the hearing. The subject line
of the email must contain the regulation number REG-117298-21 and the
language ATTEND Hearing Telephonically. For example, the subject line
may say: Request to ATTEND Hearing Telephonically for REG-117298-21.
Requests to attend the
[[Page 33130]]
hearing must be received by July 28, 2026, 5:00 p.m. ET.
Hearings will be made accessible to people with disabilities. To
request special assistance during a hearing please contact the
Publications and Regulations Section of the Office of Associate Chief
Counsel (Procedure and Administration) by sending an email to
<a href="/cdn-cgi/l/email-protection#1b6b6e79777278737e7a6972757c685b726968357c746d"><span class="__cf_email__" data-cfemail="d7a7a2b5bbbeb4bfb2b6a5beb9b0a497bea5a4f9b0b8a1">[email protected]</span></a> (preferred) or by telephone at (202) 317-6901
(not a toll-free number) by July 25, 2026, 5:00 p.m. ET.
Any questions regarding speaking at or attending a hearing may also
be emailed to <a href="/cdn-cgi/l/email-protection#3d4d485f51545e55585c4f54535a4e7d544f4e135a524b"><span class="__cf_email__" data-cfemail="324247505e5b515a5753405b5c5541725b40411c555d44">[email protected]</span></a>.
Oluwafunmilayo Taylor,
Section Chief, Publications and Regulations Section, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2026-11102 Filed 6-2-26; 8:45 am]
BILLING CODE 4831-GV-P
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