Post-Issuance Tax Compliance

  • DAC's innovative post-issuance tax accounting system provides a safe, secure area for clients to store sensitive bond documents, account for proceeds expended and spend down requirements, as well as store bank statements, draw requests, invoices, and the like for the life of the bond plus three years. Issuers receive timely reminders of filing due dates and assistance with preparation of IRS Form 8038-CP and 1097-BTC.
  • DAC also provides Private Business Use services. The DAC system demystifies the calculation of private business use and the preparation of Schedule K to Form 990 by incorporating, in one software application, the complicated Treasury Regulations applicable to financings of separate facilities with separate placed in service dates and separate economic lives. With fast and easy inputs, the DAC system can track the impact of cost of issuance, redemptions, refunding, reimbursements, neutral costs, working capital expenditures, and construction period investment earnings. The DAC system prompts the user for the minimally necessary information and outputs private business use for the reporting period, actual private business use to date, and an estimated private business use percentage for the life of the financing. The system tracks usage by both percentage and dollar amount and alerts the user when specific limitations have been exceeded.
  • The DAC post-issuance tax accounting system is not intended to replace legal assistance or render opinions; basically, it's a sophisticated calculator that allows the user to know, at any time, with exacting precision, the amount of private business use for any bond issue. The system even allows the user to model future numbers to plan ahead for expected changes in private use. Therefore, the DAC system allows the user to plan for the future and maximize the available private use amounts. The user can effectively model "what if" scenarios instantly and with complete confidence.