IRS Hit With Twin $70 Million Easement Tax Deduction Lawsuits

Two partnerships in Georgia and Mississippi each sued the IRS in unrelated suits, saying the agency should allow their separate $70 million noncash charitable contribution tax deductions because they collectively donated conservation easements over more than 679 acres of land.

Marshall Creek Land Holdings LLC in Watkinsville, Georgia, and Fenton Flats Property LLC in Oxford, Mississippi filed separate lawsuits on Sept. 13 accusing the IRS of relying on an invalid rule to determine their final partnership adjustments and penalties. Marshall Creek and Fenton Flats both conveyed conservation easements to nonprofits, then sought tax deductions for their respective donations’ alleged fair ...