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Sequestration on Build America Bonds, QSCABs and QZABs

By Amanda Brownson posted 08-15-2018 12:20

  
According to the IRS website, the sequestration rate that applies to Build America Bonds, Qualified School Construction Bonds and Qualified Zone Academy Bonds has been reduced to 6.2 percent this year.  They indicate that transactions processed on or after October 1, 2018, and on or before September 30, 2019, will be reduced by the fiscal year 2019 6.2 percent sequestration rate.  This is lower than the sequestration rate for 2018, which was 6.6%.  The IRS notes that this rate applies until and unless a law is enacted that cancels or otherwise affects the sequester.

You can read more about this on the IRS website here: https://www.irs.gov/tax-exempt-bonds/effect-of-sequestration-on-state-local-government-filers-of-form-8038-cp
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