It’s every sailor’s nightmare: dead into the wind, the boat upright but heeling to leeward,, bow not coming over, sails luffing their stuffing out, and the surf on the lee shore getting louder. Happily for IRS, Judge Christian N. (“Speedy”) Weiler gives them an early Christmas present by letting them (partially) get out of stays. Here’s Longwood Preserve Holdings, LLC, Longwood Preserve Investors, LLC, Tax Matters Partner, Docket No. 12421-19, filed 12/23/21,*

My readers will recall that Judge Speedy Weiler stayed all, but then partially unstayed, the Longwoods back in March, so that the parties’ appraisers could eyeball the Longwoods’ high-priced Glynn County, GA boondocks, to come up with a Gunga Din appraisal thereof (“nothin’ much before, An’ rather less than ’arf o’ that be’ind.”). If not, see my blogpost “Staying the Stay,” 3/22/21.

Today Judge Speedy Weiler lifts even more, as he lets IRS go on discovering and developing its case.

” Respondent now seeks a partial lifting of the stay so that he can further engage in discovery to determine the value of the conservation easement at the time of the grant. We agree with respondent that a partial lifting of the stay for the purpose of engaging in discovery related to the value of the conservation easement and a ruling as to whether respondent has met his burden of production under section 6751(b), would narrow the issues for trial and reduce the burden of litigation on the parties and on the court.” Order, at p. 2.

Precisely what IRS needs to discover about what their own people did when is unclear to me. Did IRS seriously think Judge Speedy Weiler’s stay back in March prevented them from reading their own files and talking to their own employees about the chops or anything else?

But more work on developing valuation is definitely to the point. 11 Cir has Hewitt, the grandpappy of the GA conservation dodges, wherefore “highly contestable readings of what it means to be perpetual” are definitely under the appellate electron microscope. As I said in my blogpost hereinabove-cited, “Can’t read too much into this, but just possibly might could be IRS is less than sanguine about what 11 Cir will do.”

*Longwood Preserve Holdings Docket No. 12421-19 12 23 21