Arbitrage Rebate and Yield Restriction Compliance Services

Arbitrage Tax Exempt Bond Services P.A. provides a full range of arbitrage rebate compliance services, calculations, and computations:

  • Arbitrage Rebate Calculations
  • Yield Restriction Calculations
  • Spending Exception Calculations
  • Bond Yield Calculation
  • Penalty-in-Lieu of Rebate Calculations
  • Request for Recovery of Overpayments Under Arbitrage Rebate Provisions
  • Commingled Funds Computations
  • Transferred Proceeds Computations
  • Assistance with IRS Audits

Escrow Verification Reports

We can provide cash flow verification services for bond issues of different sizes and a variety of entities.  Generally, when an issue is refunded Bond documents may require an independent CPA firm's verification of cash flows. This verification report verifies the cash flows from the securities to be deposited in the escrow account are sufficient to repay debt service on the refunded debt and that the applicable yield restrictions have been met.


Bookkeeping and Tax Preparation Services


We offer bookkeeping services for small businesses in a number of industries.   Chose from daily, weekly, and/or monthly services based on your needs. We work with our clients utilizing QuickBooks Online.  We also offer payroll services.

Tax Preparation

We prepare federal and state tax returns for individuals, partnerships and corporations.


4 Reasons why Clients Choose Us

  1. Expertise
  2. Efficient Process
  3. Prompt Responses to Client Inquiries
  4. Personalized Service

The Scope of Arbitrage Rebate and Verification Services and Procedures

Arbitrage Rebate Procedures:

  • Review of closing documents and investment activity in order to determine which funds are subject to the arbitrage rebate and yield restriction calculations.
  • Analyze the data contained in source documents in order to evaluate whether all bond proceeds are included in the calculation
  • Calculate the gross proceeds through a reconciliation of the sources and uses of funds.
  • Obtain trust statements directly from your financial institution if not provided by issuer.
  • Calculation the bond yield.
  • Test for exceptions from rebate.
  • Compute the arbitrage rebate amount and determine that yield restrictions are met.
  • Prepare a detailed report in an easily understood format, which describes the procedures performed and the amount of any rebate or yield reduction payments owed.
    • present cumulative results since the issue date (based upon the frequency requested by issuer)
    • Consultation of the results of our report with issuers staff, bond counsel, auditors, trustees and the IRS, if requested.
  • Prepare the IRS Form 8038-T for any necessary payments to the IRS.
    • Calculate any interest and penalties that are due to the IRS.
    • Prepare a waiver of penalty letter.
  • Advise you of situations where bond counsel consultation is recommended.
  • Prepare IRS Form 8038-R for any issuers applying for a refund of a previous rebate payment.

Verification Procedures:

  • Verifying the mathematical accuracy of certain computations relating to the refunding bonds contained in schedules provided to us by the financial advisor or underwriter.
  • Calculate the yield on the refunding bonds and compare it to the yield calculated on the escrow investments.
  • Calculate the future cash receipts from the escrow investments.
  • Calculate the debt service requirements related to the refunded bonds.
  • Compare the information contained in our analysis to independent documentation, such as the official statement, escrow agreement, and SLGS Subscription Forms.
  • Prepare a report in an easily understood format, which describes the procedures performed and the results of our testing.

Next Step...Request a quote for your tax-exempt bond issue.

Please fill out the quote form and include your e-mail address and contact information. A comprehensive fee and service proposal will be forwarded promptly.