Bloomberg
June.26.2012
This article, about universities choosing to sell taxable securities in order to work around the Internal Revenue Service limit on tax-exempt borrowing, quotes tax partner Richard Chirls.
According to Chirls, the IRS has increased audits and started requiring nonprofits to detail their tax-free financings as part of annual filings to the federal agency, further raising the risk of inspection. Borrowers can either pay a tax or face penalties if they use their tax-exempt financed facilities for anything outside their educational missions, he said.