Quote:
Originally Posted by Lauren Ritchie
folks,
my name is lauren ritchie, and i am the orlando sentinel columnist who has been watching the progress of the IRS examination of the village center district (and now the sumter landing district) bonds.
the news story on the latest developments is posted at the sentinel site at www.orlandosentinel.com/lake
there, you can find links to the news story, my column which tries to look a little ahead in the process (this may answer your question, conn8757) and the actual documents sent to the district by the IRS. they are a fascinating read, and i recommend looking at them.
also, i've posted a blog item that deals with the response of charles smith, a villages resident who is the chairman of the village center district board of supervisors.
that link is http://www.orlandosentinel.com/laurenonlake
i notice that someone asked whether bond buyers are being notified of the problems with the bonds before purchasing them. i do not know the answer, but i can tell you that the village district has done the right thing by notifying the standard reporting agencies of problems with the IRS. whether investment advisors know of/pass along those notices is not something i can answer. perhaps you have some retired investment advisor who can get on the forum and tell you.
if you read the article and column carefully, you will realize that this is but a step in the process. however, it's a step that tells you a lot about where the IRS is headed with this investigation.
i invite your comments on the column and on the blog. i'll also check back here later today and try to respond to anything posted here. at the moment, i have five wide-open acres just screaming to be mowed.
lauren ritchie |
Ms. Ritchie is correct in that "this is but a step in the process."
In situations like this, it doesn't matter if you are right or not. It becomes a matter of "is the fight to prove you are right worth the cost of litigation?" Quite often, settlements occur simply to close the matter because being right is less important than being solvent. Insurance companies do this all the time. So don't businesses which get sued all the time (e.g., drug companies) just to keep a lid on overall costs. Dealing with the government is no different, whether it is a tax matter or other matter where there is any possible fiscal penalty.
We've all been there, such as the parking ticket where the meter was broken, but it was cheaper to pay the ticket than fight it, knowing the costs would escalate in court. It's not fair, but it is what happens.
Whatever happens....It's a beautiful day in The VIllage today!