1. IRS Will Not Acquiesce in Mayo ClinicHolding on UBIT
    • In an action on decision (AOD 2021-04, 2021-47 IRB 725), the IRS has announced that it will not acquiesce in an Eighth Circuit decision invalidating the requirement in reg. section 1.170A-9(c)(1) that the primary function of an educational organization described in section 170(b)(1)(A)(ii) must be the presentation of formal instruction.  [ AOD 2021-04; 2021-47 IRB 725, 11/22/2021]
  1. Access to IRS Appeals Isn’t Absolute Under 2019 Law, DOJ Says
    • The Taxpayer First Act doesn’t require the IRS to give all taxpayers an opportunity to contest agency decisions in the Independent Office of Appeals, the Justice Department has told the Eleventh Circuit in a $180 million easement case, Hancock County Land Acquisitions LLC v. United States.[Article by Kristen Parillo, 11/24/2021]
  1. Partnership Denied Deduction for Conservation Easement
    • The Tax Court upheld the IRS’s disallowance of a charitable contribution deduction for the donation of a façade easement on a building to a Los Angeles conservancy group, finding that the perpetuity requirement of section 170(h)(5)(A) was not satisfied because mortgages on the building had not been subordinated to the rights of the conservancy. [901 South Broadway Ltd. Partnership et al.; T.C. Memo. 2021-132, 11/23/2021]
  1. Tax Court Won’t Impose Penalty for Denied Charitable Deduction
    • The Tax Court, following an earlier decision upholding the disallowance of a limited liability company’s charitable contribution deduction for conservation easement donations, declined to apply an accuracy-related penalty to a portion of the LLC’s underpayment because it had reasonable cause and acted in good faith with respect to the claimed deduction. [Plateau Holdings LLC; No. 12519-16; T.C. Memo. 2021-133, 11/30/2021]
  1. Individual Filed Wrong Form With IRS; Refund Suit Is Dismissed
    • A U.S. district court dismissed for lack of jurisdiction an individual’s refund suit because he failed to exhaust his administrative remedies, finding that he filed the wrong form requesting a refund with the IRS and only filed the correct form with the court. The court rejected his informal claim argument. [Andrew Fulham v. United States; No. 1:20-cv-05871, 11/30/2021]

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(*** identifies item with useful analysis of current issue but not covered in Lynn’s recorded commentary due to complexity and time required for fair comment.)