Opinion
14954-20
08-31-2023
MAPLE EQUESTRIAN, LLC, JEFFREY BLAND, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Elizabeth Crewson Paris, Judge
This case was previously calendared for trial at the Court's February 13, 2023, Atlanta, Georgia Trial Session and by Joint Motion for Continuance, this case was continued with jurisdiction retained by this Division of the Court, by Order dated January 23, 2023, docket entry 16.
On December 23, 2020, Jeffrey Bland, petitioner's then-current tax matters partner, filed a petition with this Court for readjustment of partnership items under section 6226 for the partnership's 2011 tax year. On August 2, 2023, docket entry 25, petitioner filed a Motion to Substitute Tax Matters Partner and Amend Case Caption. Petitioner stated in its Motion that a majority of petitioner's members have now voted to appoint Verdant Property Management, LLC, as petitioner's tax matters partner. Therefore, petitioner seeks to substitute Verdant Property Management, LLC, as its tax matters partner in place of Jeffrey Bland.
Unless otherwise indicated, all statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times, all regulation references are to the Code of Federal Regulations, Title 26, in effect at all relevant times.
Treasury Regulation § 301.6231(a)(7)-1(e) (Treas. Reg.) provides:
The partnership may designate a tax matters partner for a partnership taxable year at any time after the filing of a partnership return for that taxable year by filing a statement with the service center with which the partnership return was filed. The statement shall-
(1) Identify the partnership and the designated partner by name, address, and taxpayer identification number;
(2) Specify the partnership taxable year to which the designation relates;
(3) Declare that it is a designation of a tax matters partner for the taxable year specified; and
(4) Be signed by persons who were general partners at the close of the year and were shown on the return for that year to hold more than 50 percent of the aggregate interest in partnership profits held by all general partners as of the close of that taxable year. For purposes of this paragraph (e)(4), all limited partnership interests held by general partners shall be included in determining the aggregate interest in partnership profits held by such general partners.
Petitioner's Motion does not establish whether petitioner designated Verdant Property Management, LLC, as its tax matters partner for the partnership's 2011 tax year pursuant to Treas. Reg. § 301.6231(a)(7)-1(e).
After due consideration, it is
ORDERED that, on or before September 14, 2023, petitioner shall file with the Court a supplement to its Motion to Substitute Tax Matters Partner and Amend Case Caption, filed August 2, 2023, docket entry 25, in which it shall (1) confirm that it designated Verdant Property Management, LLC, as its tax matters partner for the partnership's 2011 tax year in accordance with Treas. Reg. § 301.6231(a)(7)-1(e), (2) state the date of such designation, and (3) state the name of Verdant Property Management, LLC's tax matters partner.