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Originally Posted by JimJoe
Bond attorneys are not insurers.. and I would think the employment contract states that they are not responsible should the IRS find the bonds are taxable.
I have never gotten an answer to my question, which is.. couldn't the district have gotten a private letter ruling from the IRS BEFORE the bonds were sold whether they would be non taxable?? I think they are done frequently. Just google IRS private letter rulings to learn more but basically you submit your situation before you act on the tax consequences and the IRS will submit a ruling which applies to you before you act. I sure wish someone with tax law experience could answer the question, if one was obtained on these bonds, and if not, why not??
My opinion on this entire issue is simply the villagers and potential buyers have a right to know the facts. What can possibly be wrong with that?
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To answer the first of your questions, if a letter ruling had been requested, that fact would have certainly been set forth in the Official Statement (i.e., prospectus) prepared in connection with the bond issue. Since that fact is not set forth, apparently a letter ruling was not requested. As to why it wasn't, I don't know. You would have to ask the Developer or guess. Or maybe some of the posters ("Morseiphiles"), who have been assuring everybody not to worry ("Close your eyes, count to ten, and the boogie man will go away"), can actually supply some worthwhile factual information relevant to the discussion.
As to your to your final question as to what could be wrong with the concept of the "right to know"? Again, I don't know. You will have to ask the Morseiphiles. They will certainly have the answer. They know everything about everything, most of them seem to live at their computers and post thousands of times on every conceivable subject, and they seem to think that the way to discuss an issue is by making personal attacks on those with whom they disagree. (Oops, I just realized that I have been provoked into doing the same thing. I think that I will leave the subject of the IRS investigation alone for awhile-- at least until I calm down or there is another development.)