IRS Goes After The Villages

I’ve written quite a bit on this blog about The Villages, the popular retirement community in Central Florida. I’ve also written a book for those thinking of buying in The Villages and wanting to learn more about it, titled “Complete Guide to The Villages Florida”.

One of the reasons The Villages is so popular among baby boomers and retirees is the amount and quality of the amenities available to residents, affectionately known as “Villagers”. What many people don’t know is that the developer did not use his own money to build these amenities such as golf courses, recreation centers, and town squares. These amenities were funded by the sale of tax free bonds that homeowners have to pay off over a certain number of years.

The bonds are available tax-free by setting up what is called A Community Development District, or CDD. These districts are made up of a board, appointed by the developer, to determine how much money needs to be raised and how it is to be spent.

The IRS’s contention is that the developer of The Villages too closely controlled the boards that made up the CDD’s and therefore they’ve determined the developer needs to pay back more than $350 million.

It is too early to tell how the developer will respond to the IRS request or what exactly the outcome will be, but it will no doubt be on the minds of current and future residents of The Villages. I have set up a page tracking updates on IRS vs. The Villages where you can read the most recent articles on this very important subject.