Partnerships Appealing Easement Denials Slam Tax Court Scrutiny

Two partnerships fighting $10 million in IRS penalties for allegedly overstating the value of their conservation easements are urging a federal appeals court to overturn a US Tax Court ruling against them.

In a consolidated case, Long Branch Investments LLC and Jackson Crossroads LLC, told the US Court of Appeals for the Eleventh Circuit Wednesday that the Tax Court ignored key factors about the development potential of their respective properties when it denied their tax deductions and ruled the IRS may impose penalties for gross misstatement of taxes.

The partnerships said in their brief that their land, which is near ...