IRS review of The Villages operation
 

For those that are interested, the IRS has granted retroactively, The Villages relief regarding TAM 1 and the question of political subdivision. Other issues appear to be unresolved and the examination is continuing. Read here for a full explanation. Village Community Development Districts

There are a number of other threads on this subject-- most with posts containing incorrect information. Frankly, most Villagers do not understand this subject and probably could care less about it. For those interested in understanding it, a first step is to ignore the articles in the Daily Sun and the VHA Bulletin. The best explanation of what is involved and why IRS investigation is important to Villagers is found at: http://poa4us.org/bulletins_files/bulletin200908.pdf and A BRIEF CHRONOLOGY OF IRS VS. VCCDD AND SLCDD

No offense, but this is like only believing one political party or the other. The POA has an "ax to grind" with The Villages developer. I would take any information from the POA with a grain of salt. Perhaps the best way to understand is to read all sources of information. Somewhere in the middle lay the actual facts.

Please point out any errors in the POA material that I cited. I am interested in this subject and certainly willing to be educated.

I would ask the same of you, please point out any errors from the information written in The Daily Sun or the VHA bulliten. I am not saying the "facts" presented by the poa are wrong, it is how they are presented.

Can someone explain this in "layman's" terms? I do not understand this. We re here only 1 1/2 years. Thanks.

[QUOTE=Mleeja;1080959]I would ask the same of you, please point out any errors from the information written in The Daily Sun or the VHA bulliten. I am not saying the "facts" presented by the poa are wrong, it is how they are presented.[/Q

In reply to your query, the Daily Sun has yet to present an unbiased, coherent explanation of the IRS investigation. Read any Daily Sun article regarding the investigation and honestly tell me that you can understand what the investigation involves based on that article. Instead of explaining what is going on and its importance to Villagers, as an independent newspaper would do, the Daily Sun has either buried the story or spun it in favor of the Developer-controlled Center Districts. The VHA has done the same thing. Read any article from the VHA Bulletin.

For example, the latest Daily Sun article explains virtually nothing about the investigation and characterizes as a "victory", for the Center Districts, the IRS decision not to apply its not-a-governmental-unit-qualified-to-issue-tax-exempt-bonds rationale to the original bonds. The article ignores the fact that the Center Districts will not be able to issue tax-exempt bonds any more (the last bonds issued were taxable) and thus will incur significantly higher interest costs in the future than the Districts otherwise would have. The article also glosses over the fact that two other IRS allegations apparently remain open and could, possibly, be applied to tax the interest on the original bonds.

The IRS decision is certainly good news for the Center Districts and the Developer, but a true "victory" would have been the IRS's allowing future issuance of tax-exempt bonds, as well actually validating the tax exemption of the original bonds.

Now, it's your turn. Would you please show me where the POA has not fairly presented the facts in regard to this matter. Incidentally, do you realize that the POA has clearly stated that it hopes that the Developer and Center Districts prevail in this matter, or if not, that the IRS does not tax the interest on the original bonds? This is hardly anti-Developer bias on the part of the POA.

See my post above and click on the links to the POA website for an explanation.

Like Mleeja said............................

[quote=Advogado;1080989]I do not want to hijack the OP's question into a thread of the poa vs the VHA. There are plenty of threads for this, but....

Again I ask, is the information from the Daily Sun or the VHA factually wrong? You seem to imply it is. The VHA bulliten has published the letter that Janet Tuff sent to the VCCDD regarding the latest ruling. Are you saying this is factually wrong?

I have not said any of the information published by the poa is incorrect or factually wrong. All I am saying there is a definite bias by the poa against the Developer (even if the poa hopes the Developer prevails in this case). Should I attach any of the poa publications?

For a person wanting to understand this case or any activity occuring in The Villages, using the poa as your only source of information would be shortsighted. There are three sides to every coin... and the poa is only one of them.

For what its worth, being a brand new owner, I was previously unaware of any of this. I read the entire article the OP referred to and it seemed to me to be a simple exposition of the facts. I didn't get the impression that it was taking a position either way. I try to be optimistic and not live my life worrying about things over which I have no control, so I'm not inclined to get involved. What will be will be.
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bc

Just to clarify. The developers have always paid their income tax. The whole issue of how a CDD functions is under question by the IRS. It certainly works here and the lawyers who are protecting this way of government here are protecting this good and unusual place for all of us who live here.


There are the same people who LEAP on anything that could appear negative toward the developer, and others, like ME who always defend them.

We G's haven't seen anything yet to make us think otherwise..

And we are not connected to the Morses in ANY way, just huge fans of this place and the ethical people who created it and run it.

:agree:

I have not lost one second of sleep over this issue.
1. I don't worry over, what I cannot control.
2. I always thought it was, "much ado about nothing". And I was right!!! :smiley:

The Village Voice had an article explaining this issue and basically said the IRS, made an incorrect determination. The only sad thing, is the cost of fighting this issue.

Power in the hands of the power hungry, is not a good thing.

I wonder what Lauren Richie has to say now!!! Stay tuned!!!