Classic Residence by Hyatt, a national retirement community operator, is fighting Internal Revenue Service allegations that it underpaid taxes according to an article in Thursday’s Wall Street Journal. The disagreement is over handling of the upfront fees Classic charges its new residents. The WSJ article states that the fees are interest free loans vs. the IRS position is that they’re taxable income. According to the article, the disputed taxes are more than $107 million plus penalties.
For the WSJ article, visit: Retirement-Community Operator Battles IRS Over Entrance Fees