Zaxby’s Co-Founder’s $43.3 Million Tax Refund Claim Needs Trial

Tony Townley, co-founder of the Zaxby’s restaurant chain, and his wife Elizabeth must resolve their $43.3 million tax refund suit with the IRS at trial to determine the proper value of their donated conservation easements, a federal court said.

The Townleys sued the IRS for the alleged value of three easements they donated to Oconee River Land Trust Inc., which they claimed as charitable contribution deductions on their amended 2018, 2019, and 2020 returns. The agency sued them back for an $8.66 million penalty, asserting the Townley’s refund claim was excessive and based on an unrealistic appraisal of their property. ...