Opinion
2771-18
01-10-2023
OGEECHEE RIVER PRESERVE, LLC, DASHER'S BAY MANAGEMENT GROUP, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Richard T. Morrison, Judge
Pending before the Court in this TEFRA partnership proceeding is respondent's November 4, 2022 motion for entry of decision. In that motion respondent states, among other things, that Dasher's Bay Management Group, LLC, the Tax Matters Partner of Ogeechee Rive Preserve, LLC, and respondent had reached a settlement agreement resolving all issues in this case. Attached to the motion is a proposed decision document. No partner, other than Dasher's Bay Management Group, LLC, is a participating partner to this action within the meaning of Tax Court Rule 247(b). As required by Rule 248(b)(2), respondent has served a copy of the motion for entry of decision on Dasher's Bay Management Group, LLC, the Tax Matters Partner of Ogeechee River Preserve, LLC. Tax Court Rule 248(b)(4) provides that, if any party objects to the granting of the motion for entry of decision, that party shall, within 60 days from the date on which the motion for entry of decision is filed with the Court, file a motion for leave to intervene or participate. If no such motion is filed, "then the Court may enter the proposed decision as its decision in the partnership action." The 60-day time period prescribed by Tax Court Rule 248(b)(4) expired on January 3, 2023. As of the date of this Order and Decision, no party has filed a motion for leave to intervene or participate in this case.
Upon due consideration of the foregoing, it is
ORDERED that respondent's November 4, 2022 motion for entry of decision is granted. It is further
ORDERED AND DECIDED: That the following statement shows the adjustments to the partnership items of Ogeechee River Preserve, LLC for the taxable year 2010:
Partnership Item
As Reported
As Determined
Charitable Contribution
$8,528,000
$0
A 40 percent accuracy-related penalty for gross valuation misstatement under I.R.C. § 6662(a), (b)(3), (e) and (h) applies to any underpayment of tax attributable to claiming the charitable contribution deduction in excess of $0.
A 20 percent accuracy-related penalty applies to any underpayment of tax attributable to claiming the charitable contribution deduction in excess of $0, as such underpayment is attributable to negligence or disregard of rules or regulations under I.R.C. § 6662(a), (b)(1) and (c) and the partnership-level elements of the substantial understatement of income tax penalty under I.R.C. § 6662(a), (b)(2) and (d).