GFOA Encourages Members to Contact the IRS

| May 20, 2016

GFOA Encourages Members to Contact the IRS
On Friday, September 20, GFOA filed comments to the IRS on Proposed Regulations that would redefine Political Subdivisions for the purposes of tax exempt bonds. The Proposed Regulations set forth a new, three-part federal test to define political subdivisions qualified to issue tax-exempt debt. Every entity would have to meet all three tests to be considered a political subdivision. The entity must: (1) have right to exercise a substantial amount of at least one of three sovereign powers (the power of eminent domain, power of taxation and the police power); (2) serve a governmental purpose; and (3) be controlled by a state or local government. The detailed requirements applicable to these three tests under the Proposed Rules make the Proposed Regulations unworkable.
The GFOA letter explains that the Proposed Regulations would add extensive and additional federal requirements on entities established by the State to serve a purpose that is in the best interest of the State. Special districts in the U.S. encompass a wide variety of public purposes and to help fulfill their purpose, they have the ability to issue tax-exempt debt. The Proposed Regulations impact not only the ability to issue future tax-exempt bonds that would consequently weaken our country’s aging infrastructure, but also impact outstanding bonds issued by political subdivisions. The Proposed Regulations would hinder the ability of the political subdivisions to effectively, efficiently and economically serve communities. In the letter, the GFOA asks the IRS to withdraw the Proposed Regulations.

Spotlight

Every year the President submits a series of volumes to Congress containing the President’s proposed budget for the coming fiscal year. The President’s submission is required on or after the first Monday in January, but no later than the first Monday in February (31 U.S.C. §1105(a)). This year the President released the budget submission on February 12, 2018. This report provides brief descriptions of the FY2019 budget volumes and related documents, together with internet addresses, Government Publishing Office (GPO) stock numbers, and prices for obtaining print copies of these publications.


Other News

SparkCognition Deploys AI-Based Predictive Analytics on bp Facilities

SparkCognition | August 03, 2020

SparkCognition, the world's leading industrial artificial intelligence (AI) company, is pleased to announce the expansion of their relationship with bp, an integrated global energy business, to deploy AI predictive analytics in service of improving reliability and reducing carbon footprint in their operations. SparkCognition's SparkPredict®️ analytics solution is currently deployed on Atlantis and ETAP, two of bp's production facilities, enabling bp to predict impending equipment failures and process vulnerabilities. Using SparkPredict, bp will be able to take action before events occur and improve maintenance activities for critical subsystems across its assets. Fewer outages means less flaring, and therefore less carbon emissions. Through the new expansion, additional facilities will be added in 2020 and 2021.

Read More

Judge Grants Pentagon’s Request for Corrective Action on JEDI Cloud Contract

The Defense Department | April 17, 2020

Federal Judge Patricia Campbell-Smith Friday granted the Defense Department’s March request for a 120-day stay to take corrective action on parts of the Joint Enterprise Defense Infrastructure cloud contract, which it awarded to Microsoft in October. Amazon Web Services, which protested the award, had asked the judge in previous motions to force the Pentagon to take more expansive correction action, accusing the government of attempting to “gerrymander” revisions to the procurement. In the order, which is under seal, Campbell-Smith grants the Defense Department’s motion for remand so that “it may reconsider the aspects of the procurement challenged in this protest action,” though the 120-day remand could be lengthened or shortened upon motion and subsequent judge’s decision.

Read More

Trump administration moves to revoke China Telecom's US licenses on security grounds

CSO | April 15, 2020

Highlighting the diminished opportunities for Chinese telecom and technology providers in the US, the Department of Justice (DOJ) announced last week that the Trump Administration would seek to revoke and terminate the licenses of mobile operator China Telecom. China Telecom is authorized to provide communications, data, television and business services in the US as a facilities-based common carrier. It obtains spectrum licenses from the Federal Communications Commission (FCC) under what is called international Section 214 authorizations.

Read More

US government agrees on $25bn bailout for airlines as pandemic halts travel

The Guardian | April 14, 2020

The US government agreed a $25bn bailout for the beleaguered airline industry on Tuesday as the coronavirus pandemic brings travel to a virtual standstill. Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act (Cares Act) economic relief package passed last month in order to allow them to continue paying salaries and benefits to employees in the coming months. Details of the aid package are expected later on Tuesday. With the coronavirus now spread across more than 100 countries and every continent except for Antarctica, air travel has all but ground to a halt.

Read More

Spotlight

Every year the President submits a series of volumes to Congress containing the President’s proposed budget for the coming fiscal year. The President’s submission is required on or after the first Monday in January, but no later than the first Monday in February (31 U.S.C. §1105(a)). This year the President released the budget submission on February 12, 2018. This report provides brief descriptions of the FY2019 budget volumes and related documents, together with internet addresses, Government Publishing Office (GPO) stock numbers, and prices for obtaining print copies of these publications.

Resources

Events