Opinion
8039-16 14536-16 14541-16
06-15-2023
MURFAM ENTERPRISES, LLC, WENDELL MURPHY, JR., TAX MATTERS PARTNER, ET AL., Petitioners v. COMMISSIONEROF INTERNAL REVENUE, Respondent
ORDER OF SEVERANCE
David Gustafson Judge
These three cases were consolidated on the Court's own motion by order of January 29, 2018 (Doc. 22 in No. 8038-16), with no objection from the parties, because the cases are substantially related: All the cases involve charitable contribution deductions claimed for conservation easements. The principals of the donor entities that are involved in the cases are members of the same family. Counsel are the same in all the cases. The three cases were developed simultaneously; facts were stipulated for purposes of all three cases; the three cases were the subject of a single trial; and the parties submitted post-trial briefs that addressed all three cases.
However, Docket No. 8039-16 involves property (with permits for operation as a hog farm) that is distinct and quite different from the properties (golf courses) in Docket Nos. 14536-16 and 14541-16. Docket No. 8039-16 is a TEFRA partnership case based on a Final Partnership Administrative Adjustment, whereas Docket Nos. 14536-16 and 14541-16 are deficiency cases based on notices of deficiency. The issues in the TEFRA case and the issues in the deficiency cases do overlap but are not identical, so that a combined opinion would have to treat the cases separately for some purposes and would be complicated. In addition, it will eventually be necessary to enter decisions separately in each of the cases, and for that purpose it will probably be expedient for the cases to be severed.
The Court has determined that clarity and efficiency will be served by severing now Docket No. 8039-16 (the TEFRA case) from Docket Nos. 14536-16 and 14541-16 (the two deficiency cases), so that the cases can be resolved in two separate opinions. It is therefore
ORDERED that Docket No. 8039-16 is severed from Docket Nos. 14536-16 and 14541-16. It is further ORDERED that Docket Nos. 14536-16 and 14541-16 shall remain consolidated with each other.