Opinion
32709-21
09-24-2024
GULF LAND S&G, LLC, GH MANAGER, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
ALBERT G. LAUBER, JUDGE
GH Manager, LLC, the petitioner in this case, is the tax matters partner (TMP) of Gulf Land S&G, LLC (Partnership). On July 12, 2024, respondent filed an unopposed Motion for Entry of Decision (Motion) indicating that the parties had reached a basis for settlement resolving all issues in this case. Respondent concurrently lodged a proposed decision document under Tax Court Rule 248(b).
No partner, other than GH Manager LLC, is a participating partner to this action within the meaning of Rule 247(b). Rule 248(b) requires that the TMP notify nonparticipating partners of the Commissioner's Motion and that the Court allow 60 days for any partner to elect to intervene and object to entry of the proposed decision. An objecting party must file a motion for leave to intervene or participate within 60 days from the date on which the Motion for Entry of Decision is filed with the Court. See Rule 248(b)(4). If no such motion is filed, "then the Court may enter the proposed decision as its decision in the partnership action."
By Order served July 15, 2024, we set September 13, 2024, as the deadline by which any objecting partner must file a motion for leave to participate or intervene in the case. As of the date of this Order and Decision, no partner has filed such a motion. We will therefore grant respondent's unopposed Motion for Entry of Decision.
In consideration of the foregoing, it is
ORDERED that respondent's Motion for Entry of Decision, filed July 12, 2024, is granted. It is further
ORDERED AND DECIDED that the following statement shows the adjustment to partnership items of Gulf Land S&G, LLC, for the taxable period ending December 31, 2015:
| Partnership Item | As Reported | As Determined |
| Charitable contributions 50 percent - Schedule K, line 13(a) | $16,655,000 | $5,000 |
| Charitable contributions 30 percent (Noncash) - Schedule K, line 13(a) | $500,000 | $0 |
| Other Deduction -Schedule K, line 13(d) | $61,476 | $3,815,381 |
That a 10 percent accuracy-related penalty for a gross valuation misstatement under I.R.C. § 6662(h) applies to any underpayment of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2015;
That no penalties pursuant to I.R.C. §§ 6662(c), (d), or (e) apply to any underpayment of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2015;
That no penalty pursuant to I.R.C. § 6662A applies to any understatement of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2015; and
That no penalty pursuant to I.R.C. § 6663 applies to any underpayment of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2015.