The United States Treasury is soliciting comment from the community regarding proposed changes to the U. S. Treasury Tax Regulations. The deadline for these responses is January 2, 2008. A public hearing is scheduled for January 30, 2008. We have been told there is a high likelihood these changes will be made in one form or another.

Of particular interest to ERIN analytics and our licensees is the proposed change in the calculation of arbitrage yield when "yield to call" bonds are present in an issue (see Federal Taxation of Municipal Bonds Desk Book § 1.148-4(b)(3)). The current regulations, implemented in the ERIN/muni System years ago, require an arcane and complicated method of calculating the arbitrage yield. The proposed change intends to simplify the calculation. .

When the final regulations are published we intend to be ready with a new System. It is important to note that if and when the change becomes effective a new version of the ERIN/muni System will be sent to each licensee whose maintenance fees are up to date.