IRS CCA: Procedures for Determining Civil Fraud Penalties for BBA Partnerships (IRC §6663)

The procedures for determining the applicability of any civil fraud penalty against a partnership subject to the Bipartisan Budget Act of 2015 (BBA) that participated in a syndicated conservation easement (SCE) transaction are the same as those for establishing civil fraud against a partnership subject to the BBA generally, through all facts and circumstances that establish the willful intent to evade tax at the partnership level, the Chief Counsel’s Office advised. Promoters of SCE transactions purport to give partners the opportunity to claim charitable contribution deductions in amounts that significantly exceed the amount invested in the partnership. The Chief Counsel’s ...