|
|
|
The Importance of An Arbitrage Rebate by Cleo Gib
|
|
|
The Importance of An Arbitrage Rebate |
|
|
|
Business
|
|
Local city governments that are set up as a non-profit entity collect taxes to support the municipality. Property and sales taxes provide the funding that pays for the public service of a local police and fire department as well as the public libraries and administration of a city. Utilities that are managed by the city can also generate an income for the local government. The annual budget that is setup by the mayor and city manager accounts for the spending that will take place inside the city. However when a new public building or repairs to main street call for additional spending, the city may issue a bond to raise money for the project. When a bond is issued it is typically counted as a separate assessment that is paid by each homeowner and business within the community. The money that is collected is earmarked for the new project and spent only for the construction that it is funding. Any money left over once the project is completed must be accounted for through an arbitrage rebate that is reported to the IRS. Why Risk Jeopardizing Non-Profit Status? The funds that remain in a bond do not automatically transfer into the city's coffers. Because the city is set up as a non-profit organization it cannot absorb any additional money that is left over from a bond without first documenting the accounts payable to the IRS. There are rules and regulations that must be followed to the letter before a city is allowed to transfer bond funds into its treasury. Accountants that specialize in arbitrage rebate calculations provide the audits and submit the detailed reports that are used by the IRS to issue a rebate. If a city neglects to report the income to the federal government it jeopardizes its non-profit status and will be accountable for paying taxes on all of the revenue that is earned though sales tax and property tax assessments in the future. Arbitrage Compliance Specialists, Inc. was founded in 1994 and has grown to be one of the largest arbitrage rebate provider in the nation. The Managing Directors of ACS average over 26 years of arbitrage rebate experience and can offer clients a historical knowledge and comprehensive understanding of the arbitrage rebate regulations. (http://www.rebatebyacs.com)
Related Articles -
arbitrage, rebate,
|
Rate This Article |
|
|
|
Do you Agree or Disagree? Have a Comment? POST IT!
Reader Opinions |
|
|
|
|
|
|
|
|
Author Login |
|
|
Advertiser Login
ADVERTISE HERE NOW!
Limited Time $60 Offer!
90 Days-1.5 Million Views
|
|
TIM FAY
After 60-plus years of living, I am just trying to pass down some of the information that I have lea...more
|
|
|
|
|
LAURA JEEVES
At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
|
|
|
|
|
SUSAN FRIESEN
Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
|
|
|
|
|
STEPHEN BYE
Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through the...more
|
|
|
|
|
GENE MYERS
Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
|
|
|
|
|
SHALINI MITTAL
A postgraduate in Fashion Technology. Shalini is a writer at heart! Writing for her is an expression...more
|
|
|
|
|
ADRIAN JOELE
I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more
|
|
|
|
|
ALEX BELSEY
I am the editor of QUAY Magazine, a B2B publication based in the South West of the UK. I am also the...more
|
|
|
|
|
JAMES KENNY
James is a Research Enthusiast that focuses on the understanding of how things work and can be impro...more
|
|
|
|