On September 8, 2011, the Tax Exempt Bonds staff of the Internal Revenue Service (the "Service") hosted a teleconference to explain updates to its Voluntary Closing Agreement Program (VCAP), which allows issuers to voluntarily come forward to the Service with identified violations relating to its bonds and work towards a mutual resolution to correct the violation. As part of this telephone conference, the Service repeatedly encouraged issuers to adopt written post-issuance compliance procedures that identify personnel responsible for tracking compliance and provide guidelines for review of the various requirements imposed on the issuer's bonds. The Service noted that an issuer that has adopted written post-issuance compliance procedures is more likely to be considered by the Service to be in actual compliance and may generally expect to receive more favorable terms in any resolution obtained under VCAP. More information regarding the Service's position on post-issuance compliance may be found here.
Vinson & Elkins has assisted many of its clients in drafting post-issuance compliance procedures and is available for consultation regarding what post-issuance compliance plan best fits an issuer's needs.
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