The Treasury Department and Internal Revenue Service released new proposed rules on the definition of issue price that market participants consider to be a significant improvement over rules proposed on the topic in 2013.

The re-proposed rules, which were released Tuesday and are scheduled to appear in Wednesday's edition of the Federal Register, would allow issuers to rely on the initial offering price under certain circumstances and provide a narrower definition of an underwriter. The document that contains the re-proposed rules also withdraws issue price rules proposed in September 2013.

Kim Betterton, a partner at Ballard Spahr in Baltimore who took the lead on the National Association of Bond Lawyers' comments on the 2013 proposal, said it looks like Treasury and the IRS accepted most of NABL's suggestions.

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