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

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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).

Freeman Law, Tax Attorney

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