Services

Arbitrage Services Easy As One, Two, Three

One, find out if you have bonds that are subject to arbitrage compliance by contacting LLS Tax Solutions. Issuers of tax-exempt debt must determine if arbitrage rebate is due to the U.S. Treasury.

Two, let our Arbitrage Service team review your bonds documents and investment information. We focus exclusively on monitoring the investments of bond proceeds and performing arbitrage calculations to help ensure that clients’ bond issues retain their tax-exempt status. Our team has extensive experience with a variety of complex issue structures, including comingled funds, reserve fund allocations, variable rate issues, and transferred proceeds.

Three, relax. We have one goal to make arbitrage compliance administratively easy for our clients. We have provided a multitude of arbitrage reports to a long list of issuers. Our broad experience, capabilities, and quality control measures are supported by a proven, comprehensive analytical methodology.

Scope of Services

For a typical bond issue and as agreed with you, we will:

Assess whether the issue is actually subject to arbitrage rebate requirements (including an analysis to determine whether any “spending exception” applies)
Determine the bond yield as required under existing regulations, except where previously computed and provided to us
Track and calculate earnings from investment of bond proceeds to assess if any rebate to the federal government is required
Analyze the data contained in source documents, helping to evaluate whether all bond proceeds are included in the calculations
Advise you of situations where bond counsel consultation is recommended to resolve any questions that might arise
Prepare a full detailed report on rebatable arbitrage presenting cumulative results since the issue date
Prepare the necessary IRS Form 8038T and reports to accompany any required payment to the U.S. Treasury