The Internal Revenue Service’s ruling against the Village Center Community Development District in Florida may not be as far-ranging as originally thought because of the unique set of facts that were found to be abusive by the IRS, market participants said Thursday.

However, several lawyers said the ruling is causing some bond financings to be postponed in Florida and Colorado and raises some questions. They complained the IRS is trying to create new standards for CDDs through an enforcement action rather than through rulemaking, which permits public comment.

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