The third appearance of Sunil S. Patel and Laurie McAnally Patel, et al., T. C. Memo. 2024-34, filed 3/26/24, is just a reiteration of all the microcaptive dodges to which Judge Courtney D. (“CD”) Jones cites so patiently. For backstrory, see my blogposts “Are You Being Served? – Pert Deux,” 5/20/20, and “Loro Firmani, Tu Perdi,” 9/22/20. Sunil’s manifest desire to get into the microcaptive taxdodging business is his downfall. Interesting side note: Sunil’s actuarial whiz was apparently sued by one of his high-profile customers for the made-as-instructed numbers that undid said customer, T. C. Memo. 2024-34, at p. 49. Support staff, watch it; your customers will turn on you.

Savannah Shoals, LLC, Green Creek Resources, LLC, Tax Matters Partner, T. C. Memo. 2024-35, filed 3/26/24, once again justifies Judge Holmes’ celebrated dictum in Oakbrook: “Conservation-easement cases might have been more reasonably resolved case-by-case in contests of valuation. The syndicated conservation-easement deals with wildly inflated deductions on land bought at much lower prices would seem perfectly fine fodder for feeding into a valuation grinder.” 154 T. C. 10, at p. 126.

Here, Judge Goeke boots IRS’ argy-bargy about Section 708(b) termination of partnership, timely reporting of the conservation easement, proper appraisal and appraisal summary, and in thirteen (count ’em, thirteen) pages, demolishes the Shoals’ valuation, chopping them with 40% overvaluation. T. C. Memo. 2024-35, at pp. 34-47.

If you want to see what Judge Mark V. (“Vittorio Emanuele”) Holmes was talking about, here’s Judge Goeke’s take. “New Shoals claimed a $23 million deduction. The easement had a fair market value on the donation date of $480,000. Because the amount of the claimed deduction was more than 200% of the fair market value, the 40% gross valuation misstatement penalty applies to any underpayment of tax attributable to the valuation misstatement.” T. C. Memo. 2024-35, at p. 48.