IRS Said to Wrongly Reject $50 Million Conservation Easement

The IRS erred in levying almost $25.6 million in penalties after disallowing a Louisiana conservation easement, a Florida partnership told the US Tax Court.

Gum Bayou Property LLC is petitioning the court to reverse the agency’s denial of what it says is a $49.5 million charitable contribution for the 241-acre parcel. In a conservation easement, the land owner donates an easement that encumbers development on land in exchange for tax benefits. Gum Bayou claimed its easement for its 2020 tax year, submitting an appraisal of the property showing it could have alternatively been used to establish a mine for ...