The Tax Court in Brief October 31 – November 6, 2020

Share this Article
Facebook Icon LinkedIn Icon Twitter Icon

Freeman Law is a tax, white-collar, and litigation boutique law firm. We offer unique and valued counsel, insight, and experience. Our firm is where clients turn when the stakes are high and the issues are complex.

The Tax Court in Brief October 31 – November 6, 2020

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, download here or check out other episodes of The Freeman Law Project.

The Week of October 31 – November 6, 2020


Glade Creek Partners, LLC, Sequatchie Holdings, LLC, TMP v. Comm’r, T.C. Memo. 2020-148 

November 2, 2020 | Goeke, J. | Dkt. No. 22272-17

Short SummaryIn 2012, Glade Creek Partners, LLC (Glade Creek) donated a conservation easement on 1,313 acres of undeveloped real estate in Bledsoe County, Tennessee.  It claimed a $17.5 million charitable contribution deduction for its 2012 short tax year period.  The IRS challenged the charitable contribution deduction and sought penalties.

Key Issue:  Whether Glade Creek is entitled to the charitable contribution deduction under the technical requirements of Section 170 and whether Glade Creek is liable for a 40% gross valuation misstatement penalty under Section 6662(e) and (h) or alternatively the 20% valuation penalty under Section 6662(b)(3).

Primary Holdings

Key Points of Law:

InsightFreeman Law has extensively covered the ongoing conservation easement saga between taxpayers and the IRS.  Conservation Easement Deductions: A Primer on Key Provisions; Another Attack on Conservation Easements; Settling Conservation Easement Penalties: The IRS and Some New Insights.  The Glade Creek decision continues to show that the saga will continue.


Leith v. Comm’r, T.C. Memo. 2020-149 

November 4, 2020 | Vasquez, J. | Dkt. No. 12275-17

Short SummaryThe taxpayer sought innocent spouse relief from the joint tax liabilities of her husband for the tax years 2010-2013.  The IRS granted relief, and the taxpayer-husband intervened, opposing relief.

Key Issue:  Whether the taxpayer is entitled to innocent spouse relief under Section 6015(f).

Primary Holdings

Key Points of Law:

Insight: The Leith decision serves as a good reminder to taxpayers of the usefulness of requesting innocent spouse relief on equitable grounds under Section 6015(f).

 

Tax Court Litigation Attorneys 

Need assistance litigating in the U.S. Tax Court? Freeman Law’s tax attorneys are experienced litigators with trial-tested litigation skills and in-depth substantive tax knowledge, having collectively litigated hundreds of cases before the U.S. Tax Court. Our tax controversy lawyers have extensive experience in Tax Court matters involving partnership audits and litigation under both the TEFRA and BBA regimes, international tax penalties, foreign trusts, valuation, reasonable compensation disputes, unreported income, fraud penalties, other tax penalties, any many other matters. We draw on our experience and wealth of tax knowledge to advise and guide clients through the entire tax controversy process, building the right strategy to resolve tax controversies from day one. Schedule a consultation or call (214) 984-3000 to discuss your Tax Court concerns or questions.