IRS Agrees to Settlement in Easement Penalty Backdating Case

The IRS and a conservation easement donor reached an agreement to settle after a battle over the approval of a $15.2 million penalty, according to a US Tax Court filing.

The agreement comes after the IRS previously admitted that an employee backdated the approval signature on a penalty form in the Lakepoint Land II, LLC v. Commissioner easement case and misled the Tax Court about it.

Both parties filed a joint motion for continuance Sept. 7 to inform the US Tax Court that they reached a basis for settlement.

“There appearing that a document subpoena hearing is no longer necessary, ...