US Tax Court Judge Gives Nod to IRS Backdating Case Settlement

A US Tax Court judge agreed with the settlement terms in the conservation easement case in which the IRS admitted to backdating a penalty approval form.

Conservation easement cases have become a priority for the IRS as it tries to curb abuse in the space, arguing that many partnerships claim a charitable dedication based on an inflated appraisal of the donated right. But the LakePoint Land II, LLC v. Commissioner case in the US Tax Court revealed the agency’s missteps when it handled approving a penalty.

The IRS admitted that an employee backdated the approval signature on a penalty form ...