I don't remember seeing this discussed on this site and I did a search and couldn't find it there either. So if it has been discussed or posted, forgive me. I just started reading through it myself and thought others might be interested. It is on the Villages Community Develpment District's website and is the request from the VCDD's attorney to the IRS asking the IRS' legal counsel to determine if the VCDD is a political subdivision authorized to issue the said bonds in question during the IRS audit. It is the second link down when you open the page, IRS Tecnical Support Request. It contains an outline of the whole process and explains the audit.
http://www.districtgov.org/IRSupdate.aspx