Opinion
12049-19
07-01-2024
POINT OF THE RIVER, LLC, PARKWAY SOUTH, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Albert G. Lauber, Judge
Parkway South, LLC, the petitioner in this case, is the tax matters partner (TMP) of Point of the River, LLC. On February 15, 2024, the parties filed a joint status report indicating that they had reached a basis of settlement resolving all issues in this case. On March 22, 2024, respondent filed a Motion for Entry of Decision to which petitioner does not object. Respondent concurrently lodged a proposed decision document under Tax Court Rule 248(b).
No partner, other than Parkway South, 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 Enry 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."
The deadline for the 60-day period prescribed by Rule 248(b)(4) was June 24, 2024. As of the date of this Order and Decision, no partner has filed a motion for leave to participate or intervene in the case.
In consideration of the foregoing, it is
ORDERED that respondent's Motion for Entry of Decision, filed March 22, 2024, is granted. It is further
ORDERED AND DECIDED that the following statement shows the adjustment to the partnership items of Point of the River, LLC, for the taxable period ending December 31, 2014:
Partnership Item
As Reported
As Determined
Charitable Contributions 50 Percent (Noncash) - Schedule K, line 13(a)
$12,375,000.00
$00.00
Charitable Contributions 30 Percent (Noncash) - Schedule K, line 13(a)
$4,125,000.00
$310,000.00
Charitable Contributions 50 Percent (cash) - Schedule K, line 13(a)
$32,170.00
$32,170.00
Other Deduction - Schedule K-1, line 13(d)
$9,703.00
$3,583,607.00
That a 10 percent accuracy-related penalty for gross valuation misstatement under I.R.C. § 6662(h) is applicable to any underpayment of tax resulting from the above adjustments to partnership income for the taxable year ending December 31, 2014;
That there are no penalties pursuant to I.R.C. §§ 6662A, 6662(b), and 6662(d) applicable to any underpayment of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2014.