Quote:
Originally Posted by villagerjack
Your link produced a blank slate.
The District can only comply with provisions existing at the time of issuance which it s suggested, they did comply. The IRS being what they are, changed the game.
There are nearly 580 CDDs operating in Florida alone that have been relying on the assumption that they are political subdivisions that can issue tax-exempt bonds. The decision also threatens the tax-exempt status of bonds issued by thousands of organizations with similar structures around the country.
“The IRS seems to be adding a new requirement for an issuer to be a political subdivision,” said Scott Lilienthal, president of the National Association of Bond Lawyers and a partner with Hogan Lovells US LLP. “That new requirement doesn’t seem to be based on any existing authority. If the IRS wants to revisit the definition of a political subdivision then it should so through the formal rulemaking process and issue guidance on a prospective basis only.”
Why wouldn't the District defend itself against a dishonest IRS that admittedly unfairly targets specific individuals and organizations for nefarious reasons?
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First, my link did not produce a blank slate. It gave you a method of getting to the official statements for all the bonds in question. Here it is again:
Municipal Securities Rulemaking Board::EMMA
Simply go there and plug in the CUSIP of whichever of the bonds you are interested in in the upper right hand corner of the screen (the search window) and start reading.
With respect to your quote from the President of the National Association of Bond Lawyers, what else would you expect him to say since his members rendered opinions that these bonds were tax exempt?
This being said, I reiterate that I am hoping that the Center Districts can find some way to avoid liability here-- which would be good for the Villagers. Again, the Villagers' dog in this fight is a desire that all of this not impact the continuation of the amenity system, which is owned and operated by the Center Districts. I am sure that this view is also that of the other posters who have been pointing out that we have an issue here that could impact all of us and I cannot fathom the reason for the hostility that some of you have expressed toward us.
Furthermore, while I hate to defend the IRS, there is not a shred of evidence to indicate that it is unfairly targeting the Developer here. The investigation was begun under the Bush administration.