Stites & Harbison, PLLC

In a positive development for the long-term care community, the IRS has changed its position in an important tax case involving the taxability of entrance fees paid by residents of continuing care retirement communities ("CCRC's") and withdrawn its assertion that the CCRC operator owed more than $128 million in taxes and penalties associated with those fees.  However, despite changing course in this case, the IRS continues to maintain that entrance fees may constitute taxable income in other instances without providing much additional guidance.

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Brian A. Cromer is a Member in the Louisville office where his practice focuses on mergers and acquisitions, securities law, international law, commercial and real estate law, venture capital and general corporate matters.