DEERFIELD RESORT POA
Deerfield News Connection
August 15, 2024
Concerns with Tax Compliance and Financial Management of Deerfield Resort
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Financial Reasons Why Property Owner Control is Essential
As property owners, we all want Deerfield Resort to thrive. But recent findings show serious financial mismanagement by Fields Development Company, which has controlled our HOA since 1986. Despite multiple requests and even court orders, the Fields failed to provide complete financial records. The records we received reveal questionable transactions, missing documentation, and alarming tax issues, including unpaid IRS obligations and penalties.
2021 Hearthside Bank
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No payments made to the IRS for required payroll withholding taxes*
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$1,190 in NSF (non-sufficient funds) fees, with 34 checks processed as insufficient funds
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A $10,499.97 check to Express Employment, written December 30, 2020, cleared June 30, 2021
2022 Hearthside Bank
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An unexplained check payment of $6,048.15 to Marcus Rentals on January 31
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An unexplained withdrawal of $5,200.00 on February 11
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An unexplained check payment of $8,286.00 to Jake Sweeney Automotive of Cincinnati
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On March 15, 14 electronic withdrawals to the IRS for “USATAXPYMT” totaling $41,415.64
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No IRS payroll withholding tax payments in September, October, November, and December*
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A “Descriptive Withdrawal Levy” of $7,851.94 on December 27
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$1,505 in NSF fees, with 43 checks processed as insufficient funds
2023 Hearthside Bank
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Deerfield Resort paid Fields Real Estate a total of $82,500.00 in three checks (March 1 - $27,500.00, April 1 - $27,500.00, August 1 - $27,500.00)
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No IRS payroll withholding tax payments in January, February, March, April, or May*
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On June 1, three electronic withdrawals totaling $12,545.78 were made to the IRS, listed as “USATAXPYMT”
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No payments to the IRS were made from July through December*
2024 Hearthside Bank
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On February 20 & 21, 2024, 10 electronic withdrawals totaling $44,190.08 were made to the IRS as “USATAXPYMT”
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An unexplained withdrawal of $1,000.00 on March 29
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In April 2024, the Tennessee Department of Labor and Workforce Development issued a Distress Warrant Notice to Fields Development Company, Inc. / Deerfield Resort for unpaid unemployment taxes from April 2022 through March 2023, totaling $11,535.77 (including $1,930.38 in interest and penalties)
​Link to the Distress Warrant
Key Findings
Our review uncovered numerous financial irregularities: questionable expenditures, irregular payments, unexplained withdrawals, and failures in tax compliance. Notably, there were missed IRS payments in 2021, 2022, and early 2023, along with NSF fees and erratic payment patterns. On February 20 and 21, 2024, $44,190.08 was withdrawn from the HOA’s account to the IRS, highlighting serious tax compliance issues. The IRS even seized funds directly from the HOA account to cover unpaid taxes in what is referred to as a Descriptive Withdrawal Levy. These discrepancies threaten our HOA’s financial health, making immediate corrective action essential. This mismanagement led to a Motion for Divestiture of Management Control filed in June 2024, requesting oversight by Court Receiver Mr. Reams.
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An HOA is responsible for managing and accounting for all expenditures to ensure they meet the community's needs and adhere to legal and financial standards. Generally, expenditures should relate to maintenance, improvements, and operational costs. However, in Deerfield Resort HOA’s case, property owner fees designated for “Security and Maintenance” have been used for questionable purposes or without clear justification.
Link to Financial and Compliance Concerns
Customary HOA Practices
In any well-run HOA, it’s standard practice to maintain clear and separate financial records. HOA funds should be managed with strict accounting practices, including the establishment of budgets, contingency funds, and reserves for major repairs. Financial transparency and adherence to regulatory standards are essential for trust and accountability. Unfortunately, our current HOA management has strayed significantly from these norms. In depositions Scott confirmed they currently have no budget, and have never had a budget for Deerfield Resort, while Paula confirmed there is no reserve or contingency fund for current, or future needs.
These ongoing issues threaten not just the financial stability of our community, but also the value of our properties. It is clear that this mismanagement must be addressed. The upcoming board election on December 1, 2024, presents a crucial opportunity to correct the mishandling of HOA funds.
By transitioning the HOA leadership to a board of committed property owners, we can restore financial accountability, ensure proper management, and protect our community’s future. Property owner oversight and participation are important for maintaining transparency, upholding standards, and securing the long-term well-being of Deerfield Resort.
Link to prior Connection on Financial Mismanagement
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*from Bank Statements