Concerned About IRS Decision

[ltcpda]

Hello -
We have visited friends and previewed pre-owned homes in TV earlier this month and look forward to being part of your outstanding community.
As a result of an IRS audit, I am concerned about the $355M assessment against the CDD's, the effect to amenity fee revenues, and the potential to end the issuance of tax-exempt bonds. It is my understanding that the recreation centers and golf courses have been financed through the use of the tax-exempt bonds. I only want to exercise some due diligence before we purchase a home.
I understand Governor Scott ordered an investigation of the state's special districts with an expected result in January of 2014.
Does anyone have any thoughts on this matter? We look forward to another visit to TV.

Thank you

[rubicon]

This issue has been hotly debated and beaten to death and I doubt anyone can give you a definitive answer. if you have such concerns you may want to delay any purchase here until after a final decision is rendered.

[mulligan]

Or do what the other 110,000 people do........Don't worry about it.

[graciegirl]

Hello -
We have visited friends and previewed pre-owned homes in TV earlier this month and look forward to being part of your outstanding community.
As a result of an IRS audit, I am concerned about the $355M assessment against the CDD's, the effect to amenity fee revenues, and the potential to end the issuance of tax-exempt bonds. It is my understanding that the recreation centers and golf courses have been financed through the use of the tax-exempt bonds. I only want to exercise some due diligence before we purchase a home.
I understand Governor Scott ordered an investigation of the state's special districts with an expected result in January of 2014.
Does anyone have any thoughts on this matter? We look forward to another visit to TV.

Thank you

I think that you should abandon all hopes of living here. There is no clear answer.

The rest of us are spending each day chewing our nails, and worrying, praying and getting our collective knickers in a huge hitch.

All 100,000 of us very carefully planned, thought out, mostly conservative in nature and careful with our pocketbooks and OLD.

I truly do welcome you to the forum, but direct you to the search engine above where you will see many of us try to make sense of it and certain of us always, always, always, defame the nice developer. It won't take long, maybe a few hours of reading what already has been written on this forum to get a gist of it and see a pattern. You will soon hear from a lot of people with their opinions. I hope Village Kahuna writes something, as Edwin M. has taken a vacation from the forum since the "gate" issue. On the negative side you will assuredly hear from a person whose name sounds like a vegetable.

I don't understand it myself. AND I have been sarcastic, but the truth is that I don't worry about it at all.

I am thinking about beating up the guy who got arrested for road rage on the Morse Odell circle though.

Read On...and welcome and your homework is that after reading all there is about this issue, explain it to the rest of us.

Kind wishes,

Really.. I am not as mean as it sounds above.

Gracie

[Villageshooter]

We are all old enough and will be dead before all of this really hits this place so I don't really worry about it however you got a remember one thing The IRS does not lose very often.

[Bogie Shooter]

Hello -
We have visited friends and previewed pre-owned homes in TV earlier this month and look forward to being part of your outstanding community.
As a result of an IRS audit, I am concerned about the $355M assessment against the CDD's, the effect to amenity fee revenues, and the potential to end the issuance of tax-exempt bonds. It is my understanding that the recreation centers and golf courses have been financed through the use of the tax-exempt bonds. I only want to exercise some due diligence before we purchase a home.
I understand Governor Scott ordered an investigation of the state's special districts with an expected result in January of 2014.
Does anyone have any thoughts on this matter? We look forward to another visit to TV.

Thank you

Welcome to TOTV.
Rather than rely on opinions that are posted here by the hundreds, here are the facts................make your own conclusion.
Village Community Development Districts (http://www.districtgov.org/IRSupdate.aspx)
The Villages Voice (http://www.thevha.net/index.php?option=com_content&view=category&layout=blog&id=25&Itemid=26)
Property Owners, Association of Florida (http://www.poa4us.org/)

[ilovetv]

There are some key facts to understand in this article linked below.

As others have said, many of us will be dead before it is finally resolved.

After watching this for five years now, I think this adage applies best for people who are worried about this but really want to come to TV:

Don't put all your eggs in one basket.


A person doesn't have to completely sell out in their present home/state to enjoy TV. Buy a nice patio villa or 2-bedroom courtyard villa for $160 - $180,000, and keep the former home or downsize to a small place where you live now.

I think many people worry about such things because they've sunk too much of their money in the home here. There's no need to have a $300-$500,000 home here, only to be worried about losing it somehow.

Buy small and good quality, and forget about the rest.

The home here becomes a lot less important when you're outdoors in perfect weather and out socializing most of the time.

The Villages Voice (http://www.thevha.net/the-villages-voice?op=3&issue=5&article=1306)

[justjim]

Few residents in TV have lost any sleep regarding the IRS ruling which has been a "moving target" for a number of years and may continue to be a moving target. Best advise I can give you is to search the various articles and Threads and come to your own confused conclusions. It's complicated!

The issue certainly isn't keeping some 500 plus homes a month to be sold in TV. That in itself should tell you something.........

[gustavo]

We are all old enough and will be dead before all of this really hits this place so I don't really worry about it however you got a remember one thing The IRS does not lose very often.

I got a notice of deficiency and when they balked at my justification for why they were in error I threatened to take it to the next step (tax court). They withdrew the complaint. So once in a while they do loose.:laugh:

[boomerbaby]

We do not worry about it. Life is good and I think most of the 100,000 others feel the same.
Graciegirl I love your answer, no your not mean just funny. I hope to meet you someday.

[golf2140]

Don't worry, be happy.

[2BNTV]

I personally don't fully understand this issue but I wouldn't let that stop me from moving to TV as it will probably play out in the courts for many, many years. By time I will too old to care and have missed out on moving to paradise.

If you decide to research this issue, I will be extremely happy if you understand it, and can explain it all to us.

BTW - It will take a lot of time and effort. I think no one has fully grasped this situation.

[Advogado]

For those who wish to stay informed on this issue, here is the latest news:
Lawyer: IRS Position on Village Center CDD in Fla. is Turnaround | Municipal Finance Today (http://www.munifinancetoday.com/news/debt-capital-programs/lawyer-irs-position-is-a-turnaround-392-1.html)

As far as I know, there has been no mention of it in The Daily Sun.

[mickey100]

Interesting. I hadn't seen that article - thanks for posting.

[Advogado]

In case you missed it, there is an interesting little article on page 17 of the November POA Bulletin about the use of our amenity fees to pay attorneys to defend the Developer's use of tax exempt bonds: http://www.poa4us.org/bulletins_files/bulletin201311.pdf

[Bogie Shooter]

For those who wish to stay informed on this issue, here is the latest news:
Lawyer: IRS Position on Village Center CDD in Fla. is Turnaround | Municipal Finance Today (http://www.munifinancetoday.com/news/debt-capital-programs/lawyer-irs-position-is-a-turnaround-392-1.html)

As far as I know, there has been no mention of it in The Daily Sun.

Copies of the letters were posted on Village Community Development Districts (http://www.districtgov.org) on October 17
http://www.districtgov.org/images/IRSupdates/IRS%20Update%20-%2010-17-13.pdf

[bike42]

. . . however you got a remember one thing The IRS does not lose very often.

Actually the IRS often does lose. I'm betting on TV's lawyers.

[Advogado]

As reported on the ************** website:

"IRS legal fees back on AAC agenda

The matter of IRS legal fees is back on the Amenity Authority Committee agenda for Wednesday.
In December, the AAC asked District Manager Janet Tutt for regular updates on the cost of the protracted legal battle between the IRS and The Villages.
IRS legal fees have cost the AAC $382,659.49 from March 2008 to Nov. 1, 2013, according to documents provided by the district.
Another nearly $400,000 in legal costs is being borne by CDD government.
The AAC meets at 9 a.m. Wednesday at Savannah Center.
You can look at documents regarding the IRS legal costs at the link below:
http://www.districtgov.org/PDFView/PDFMeeting.aspx?id=20131106aa1013 "

If the Daily Sun reported on this, I missed it.

[mickey100]

As always, thanks for posting these links Advogado.

[ijusluvit]

In case you missed it, there is an interesting little article on page 17 of the November POA Bulletin about the use of our amenity fees to pay attorneys to defend the Developer's use of tax exempt bonds: http://www.poa4us.org/bulletins_files/bulletin201311.pdf

It is a relief to hear that the POA intends to sue the Developer for the repayment of those legal fees in due course. I usually don't pretend to know enough to predict the outcome of legal battles, but this one looks like a slam dunk for the POA and probably a reasonably quick out of court settlement. I wonder if Mr. Morse will mark the occasion of the settlement with another full-page ad in the Sun graciously agreeing the settlement is fair and just and he is happy to comply with it?

Go POA G0!!

[ltcpda]

I want to thank all of you for your informative and helpful responses. This is one reason we want to be part of your community. I will be in TV in two weeks for another look and hope to get closer to a purchase. Residents should not be penalized and I hope a reasonable settlement is forthcomeing in the near future.