Former MLB Manager Loses Tax Case Over Inflated Land Donation

Former Kansas City Royals manager Ned Yost and his business partners will have to pay 40% in penalties to the IRS because the land donated for conservation easement purposes was grossly inflated, the US Tax Court said in an opinion Tuesday.

The case stems from land Yost purchased over several years in western Georgia, totaling more than 670 acres, according to a memorandum opinion by Judge Travis Greaves. The heightened IRS penalties of 40% for a gross valuation misstatement—instead of 20% accuracy-related penalties—are appropriate because the land was overvalued, according to Greaves.

As part of retirement planning after winning the ...