SECTION 4. SCOPE

.01 This revenue procedure applies only to failures to meet the requirements for excludability of interest from gross income in §§ 141 through 150 of the 1986 Code that can be remediated under §§ 1.141–12, 1.142–2, 1.144–2, 1.145– 2, or 1.147–2 with respect to proceeds that have been spent. These remedial action provisions generally require that the initial use of proceeds of the issue of bonds, including the use of any facility financed with those proceeds, satisfied all the applicable requirements for tax-exempt bonds under §§ 103 and 141 through 150 of the 1986 Code. The requirements for excludability of interest from gross income in §§ 141 through 150 of the 1986 Code that can be

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remediated under §§ 1.141–12, 1.142–2, 1.144–2, 1.145–2, and 1.147–2 are §§ 141(b)(1), 141(b)(3), 141(b)(4), 141(b)(5), 141(c), 142 (except paragraphs (d) and (f)), 144 (except paragraphs (a)(4), (a)(10), and (b)), 145(a), 147(c)(3), 147(d)(2) and (3), 147(e), and 147(f) of the 1986 Code. This revenue procedure has no effect on the application of the provisions set forth in §§ 150(b) and (c) of the 1986 Code.

.02 An issue of bonds that is under an examination by the Service is not eligible for the program. An issue of bonds is under examination if the issuer of the bonds has been notified in writing by the Service that the issue has been selected for examination.