Bryan Camp has published an article on the Tax Prof Blog, entitled Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020). The article begins as follows:
Tax statutes and tax regulations mostly use words to talk about numbers. One of the basic lessons I must teach students is how to read numerical formulas that are expressed in words. The importance of that lesson was recently reinforced by Railroad Holdings, LLC, Railroad Land Manager, LLC, Tax Matters Partner v. Commissioner, T.C. Memo. 2020-22 (Feb. 5, 2020) (Judge Gustafson). There, the drafters of a conservation easement deed failed to properly incorporate the regulation’s proportionality requirement, a requirement that expresses a mathematical concept in words. The resulting drafting error was so bad that not even tax litigators could twist the deed’s language to fit the requirement. That cost the taxpayer a $16 million charitable deduction. Details below the fold.
To see the full article, click: TaxProf Blog.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.