Opinion
809-22
07-02-2024
SEVEN HAWKS, LLC, SOUTHEASTERN CONSERVATION GROUP, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER AND DECISION
Elizabeth A. Copeland Judge.
This case was originally calendared on April 3, 2023, at the Trial Session of the Court in Atlanta, Georgia. By Order of the Court dated February 3, 2023, this case was continued, and jurisdiction was retained by this Division of the Court.
On June 20, 2024, Respondent filed with the Court a Motion for Entry of Decision. Respondent requested that, pursuant to Tax Court Rule 248(b), this Court enter the decision attached to the Motion for the taxable period ending December 31, 2017. Respondent informed the Court that the parties have reached a basis of settlement, but not all partners of Petitioner necessarily agree. However, any such partner that might disapprove of the settlement reached by the parties to this proceeding has not elected to intervene or participate in this proceeding and the time to do so has expired. See Rules 245 and 247(b); I.R.C. §§ 6226(c), and 6228(a)(4)(A), as in effect when the Petition in this case was filed.
Unless otherwise indicated, Rule references are to the Tax Court Rules of Practice and Procedure, and statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times.
It is noted that additional non-partnership items were also agreed to by the parties but are not within the jurisdiction of this Court in this case.
Upon due consideration, and for cause, it is
ORDERED that Respondent's Motion for Entry of Decision, filed with the Court on June 20, 2024, is granted. It is further
ORDERED AND DECIDED that the following shows the adjustments to the partnership items of Seven Hawks, LLC, for the taxable period ending December 31, 2017:
Partnership Item
As Reported
As Determined
Charitable contributions 50 percent, noncash - Schedule K, line 13(a)
$12,400,000.00
$0.00
Charitable contributions 50 percent, cash - Schedule K, line 13(a)
$35,000.00
$35,000.00
Other Deduction - Schedule K, line 13(d)
$59,523.00
$2,944,483.00
That a 10 percent accuracy-related penalty for gross valuation misstatement under I.R.C. § 6662(h) applies to any resulting underpayment of tax;
That no penalties pursuant to I.R.C. §§ 6662(b)(1) and (c), 6662(b)(2) and (d), and 6662(b)(3) and (e) apply to any underpayment of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2017; and, That no penalty pursuant to I.R.C. § 6662(a) applies to any understatement of tax resulting from the above adjustments to partnership items for the taxable year ending December 31, 2017.