[Lou Card]

Originally Posted by Taj44

I was just reading an article in The Bond Buyer, an online financial magazine, which describes The Villages vs. IRS issue. It says the IRS had expanded its review of bonds to include about $400 million worth of bonds, and it also has problems with the CDD appraisals of recreational facitilties they valued at approximately $64 million which independent appraisals only value at about $7 million.

As residents, we're all hoping that this will go away, the IRS will rule in The Villages favor. But there are obviously no guarantees. Our amentity fees cannot go up, which begs the question, if there are tax penalties to be paid, which could be many millions of dollars, where is the money coming from?

In the meantime, as others have said, there is no point in worrying, because it certainly is out of our hands, but the wise will keep abreast of all current information while we wait to see what happens. We all love the lifestyle here, but if the IRS rules that the Morses's via the CDD's acted improperly, there is a problem, and it will be affecting the residents. Perhaps there will be a special surcharge, perhaps amenties will be dropped, who knows?

I'm not going to stick my head in the sand, and say there are no problems, the Morse's are going to take care of me, that would be foolish. When the IRS decision is made, we can then look at the facts, and be prepared to deal with the consequences. We are all hoping that this IRS inquiry will go away as the previous one did, but to me this investigation sounds much more extensive, and I suspect they do not want the method the Villages used to act as precedent for other CDD's. But for now we Villagers are in limbo.

I would recommend you try a retirement community outside of Florida. If you have this much worry about the bonds, You will never be happy here. We on the other hand love this place and trust the Morse's.