Tax Court Blocks Partnership’s Constitutional Claim for Members

An Alabama partnership lacks standing to allege that the IRS’s auditing process of a $36.3 million conservation easement deduction violates its members’ due process rights under the Fifth Amendment, The US Tax Court held Thursday.

Judge Kathleen Kerrigan denied a motion for summary judgment from Jones Bluff LLC, a limited liability company but treated as a partnership for tax purposes that claimed the deduction at issue for a donated tract of land in Coosa County, Ala. for its 2019 tax year. The IRS disallowed the deduction and issued a notice of final partnership adjustment, assessing a $13.4 million underpayment and ...