Arbitrage Compliance Specialists, Inc

Financial consultant in Centennial, CO (show on map)

ACS helps state and local governments navigate tax laws governing tax-exempt bonds with expertise in arbitrage compliance.

Call (800) 672-9993

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About

Arbitrage Compliance Specialists (ACS) specializes in assisting state and local governments with the complex tax regulations surrounding tax-exempt bonds. Operating nationwide with a presence in all 50 states, ACS has over 35 years of experience ensuring clients remain compliant with the latest IRS regulations and timely settle their accounts.

Their services encompass a full suite of pre- and post-issuance compliance offerings, including arbitrage rebate calculations, yield restriction assessments, spending exception evaluations, ongoing bond compliance monitoring, and Form 3808 preparation. ACS prides itself on its principled approach, independence, collaborative team, and advanced analytics platform, which together deliver accurate and efficient arbitrage rebate analyses and ensure compliance with legal requirements.

National presence serving all 50 states

Over 35 years of specialized experience in municipal bond arbitrage compliance

Advanced analytics platform for accurate arbitrage rebate analyses

Commitment to client education and proactive compliance solutions

Services

Arbitrage Rebate Calculations

Calculates and reports excess earnings from tax-exempt bond proceeds invested above the bond yield to the IRS.

Daily transaction detail maintenance IRS reporting deadline awareness Preparation of Form 3808

Yield Restriction Calculations

Ensures proceeds from municipal bonds are invested at or below the bond yield when unspent beyond allowed periods.

Interim yield restriction calculations Spending exception analysis Ongoing compliance monitoring

Spending Exception Calculations

Assesses eligibility for exemptions from arbitrage rebate based on timely expenditure of bond proceeds.

Evaluation of 6-month, 18-month, and 2-year spending exceptions Analysis of small-issuer exemption thresholds Guidance on maintaining required documentation

Ongoing Bond Compliance

Provides continuous monitoring and support to ensure compliance with arbitrage and yield restriction rules throughout the bond's life.

Regular compliance check-ins Annual reporting assistance Real-time analytics for compliance tracking

Form 3808 Preparation

Prepares and files Form 3808 with the IRS to report arbitrage rebate liabilities.

Accurate calculation of rebate amounts Timely submission within 60 days of each reporting period Detailed documentation for IRS review

Credentials & Certifications

Over 35 years of experience in municipal bond arbitrage compliance

Since 1990

National presence serving all 50 states

Since 1986

Frequently Asked Questions

What is Arbitrage Rebate? +

Arbitrage is earned when proceeds of a tax-exempt or tax-advantaged bond issue are invested above the bond yield, the average yield issuers pay to their bondholders. This excess is a liability to the U.S. Treasury and must be rebated.

What is Yield Restriction? +

Yield restriction limits the earnings on certain municipal bond proceeds to prevent excessive arbitrage profits. If funds remain unspent beyond allowed periods, they must be invested at or below the bond yield or adjusted through payments to the IRS to maintain tax-exempt status.

What steps should I take to adhere to Arbitrage Rebate and Yield Restriction Rules? +

Maintain daily transaction details, be mindful of IRS reporting deadlines, compute arbitrage and yield restriction liabilities at least annually, and ensure timely rebate payments within 60 days of each reporting date.

Should I be aware of any exemptions from the rebate requirement? +

Yes, the small-issuer exception applies to issuers expecting to issue less than $5 million (or $15 million for public schools) of tax-exempt bonds annually. Spending exceptions (6-month, 18-month, and 2-year) allow retention of interest earnings if proceeds are invested above the bond yield within these timeframes.