Ann 2010-88

Part IV. Items of General Interest
Tribal Economic Development
Bonds — Extension of
Deadline to Issue Bonds
Announcement 2010–88
SECTION 1. BACKGROUND
In Notice 2009–51, 2009–28 I.R.B. 128
(July 13, 2009), the Treasury Department
and the IRS addressed administrative procedures for allocations of the $2 billion
national bond volume limitation authority
(“volume cap”) to issue tribal economic
development bonds (“Tribal Economic
Development Bonds”) under § 7871(f) of
the Internal Revenue Code (“Code”). On
September 15, 2009, the IRS announced
allocations in an aggregate amount of approximately $1 billion of volume cap in
the first tranche of allocation (the “First
Allocation”) of authority to issue Tribal
Economic Development Bonds. Section
7(f) of Notice 2009–51 provides that if
bonds are not issued by December 31,
2010, for any or all of the allocation received by an Indian tribal government
from the First Allocation, then such allocation is treated as forfeited.
SECTION 2. EXTENSION OF
ADMINISTRATIVE DEADLINE TO
ISSUE BONDS
.01 Except as otherwise provided in this
Announcement, Indian tribal governments
that received an allocation of volume cap
from the First Allocation will receive an
automatic extension of time of six months
from December 31, 2010, to June 30,
2011, to issue Tribal Economic Development Bonds pursuant to those allocations.
This extension does not apply to an Indian
tribal government that has notified or will
notify the IRS that it does not intend to
use its allocation of volume cap from the
First Allocation to issue Tribal Economic
Development Bonds. In those cases, the
allocation has been, or will be, forfeited as
of the date of the notification. The extension described in this Announcement does
not change that forfeiture.
.02 Additionally, Indian tribal governments that received an allocation of
volume cap from the First Allocation may

November 22, 2010

submit a written request for an additional
extension of time of six months from
June 30, 2011, to December 31, 2011,
to issue Tribal Economic Development
Bonds pursuant to those allocations.
Indian tribal governments must submit
requests for additional extensions to the
IRS by March 31, 2011. A request for
an additional extension must include: (1)
a copy of the allocation letter from the
IRS for the allocation to which the request
relates; and (2) statements from an official
of the Indian tribal government duly
authorized to execute legal documents on
behalf of the Indian tribal government in
making the request, made under penalty
of perjury, including (a) a statement
explaining the reason for the extension of
time, (b) a statement that the Indian tribal
government reasonably expects to issue
Tribal Economic Development Bonds
pursuant to such allocation on or before
December 31, 2011, to finance the project
described in the Indian tribal government’s
original application (“Application”), and
(c) a statement that such official has
knowledge of the relevant facts and
circumstances relating to the request
and the Application, has examined the
request and the Application, and that
the information contained in the request
and the Application is true, correct, and
complete.
.03 A request for an additional extension must be submitted by hard copy in
duplicate accompanied by a copy of the
request in electronic format on compact
disc sent by mail to the Internal Revenue Service (IRS), SE:T:GE:TEB:CPM,
Attention: Mark Helfer, 1122 Town &
Country Commons, Chesterfield, Missouri 63017.
.04 A request for an additional extension should not include an inquiry relating
to deviations from information submitted
in the Application under Section 8 of Notice 2009–51. Section 8 of Notice 2009–51
provides that an allocation of Tribal Economic Development Bond volume cap is
valid notwithstanding insubstantial deviations from the information submitted in the
Application. Section 8 of Notice 2009–51
also describes criteria applicable to determinations of whether a deviation with respect to the information submitted in the

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Application is insubstantial, as well as procedures to apply for approval of specific
insubstantial deviations.
.05 For requests submitted in compliance with the requirements described in
this Announcement for additional extensions from June 30, 2011, to December 31,
2011, the IRS expects to confirm the extensions by May 31, 2011. Indian tribal
governments that receive additional extensions will receive a total extension of one
year from December 31, 2010, to December 31, 2011, to issue Tribal Economic Development Bonds pursuant to volume cap
received in the First Allocation.
SECTION 3. FORFEITURE OF
ALLOCATIONS
If bonds are not issued by June 30,
2011, for any or all of an allocation received by an Indian tribal government pursuant to the First Allocation with respect
to which the Indian tribal government does
not receive an additional extension as described in section 2.02 of this Announcement, then such allocation is treated as forfeited. If bonds are not issued by December 31, 2011, for any or all of an allocation received by an Indian tribal government pursuant to the First Allocation with
respect to which the Indian tribal government receives such an additional extension, then such allocation is treated as forfeited. Any allocation amounts treated as
forfeited may be available for allocation by
the IRS as part of an allocation process to
be announced by the IRS at some future
date.
SECTION 4. EFFECT ON OTHER
TIMING REQUIREMENTS
.01 In February, 2010, the IRS announced allocations in an aggregate
amount of approximately $1 billion of
volume cap in the second tranche of allocation (the “Second Allocation”) of
authority to issue Tribal Economic Development Bonds. Section 7(f) of Notice
2009–51 provides that if bonds are not
issued by December 31, 2011, for any or
all of the allocation received by an Indian
tribal government pursuant to the Second Allocation, then such allocation is
treated as forfeited. This Announcement

2010–47 I.R.B.

does not modify any provisions relating
to the forfeiture of allocations of volume
cap received by Indian tribal governments
pursuant to the Second Allocation.
.02 Tribal Economic Development
Bonds may be issued as build America bonds (“Build America Bonds”) if
additional eligibility requirements for
Build America Bonds are met. Section
54AA(d)(1)(B) of the Code requires Build
America Bonds to be issued before Jan-

2010–47 I.R.B.

uary 1, 2011. This Announcement does
not modify the statutory requirement that
Build America Bonds be issued before
January 1, 2011.

personnel from the IRS and Treasury Department participated in its development.
For further information regarding this Announcement, contact Debbie Cho at (714)
347–9431 (not a toll-free call).

SECTION 5. DRAFTING
INFORMATION
The principal author of this Announcement is Debbie Cho of the IRS Office
of Tax Exempt Bonds. However, other

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November 22, 2010