WASHINGTON — Municipal bond tax law and rulings don't support the Internal Revenue Service's position that the Village Center Community Development District in Florida is not a political subdivision and cannot issue tax-exempt bonds because its board is privately controlled and not accountable to voters, a tax law professor contends.

In a seven-page paper published in Tax Analysts' Tax Notes on Thursday, Ellen P. Aprill, the John E. Anderson Professor of Tax Law at Loyola Law School, said if the IRS wants to change the definition of political subdivision, it should only do so through a rulemaking process that gives state and local governments the chance to comment.

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