The U.S. Court of Appeals for the First Circuit today affirmed a decision of the U.S. Tax Court that the individual taxpayers were liable for the accuracy-related penalties imposed in relation to their claim for a charitable deduction relating to what was determined to be a worthless historic preservation easement on their home.
The case is : Kaufman v. Commissioner, 14-1863 (1st Cir. April 27, 2015)
The taxpayers did not contest the Tax Court's finding that the value of the easement was zero, but asserted that the Tax Court erred in imposing the 40% accuracy-related penalties.
The First Circuit today affirmed, concluding that the Tax Court's finding that the taxpayers were liable for accuracy-related penalties was not clearly erroneous.
Read the First Circuit’s decision [PDF 62 KB]
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