The Department of Justice has reached a settlement in Townley, a case concerning a $43 million conservation easement deduction. Earlier this year, I wrote an article highlighting a case in which, by most measures, the IRS should have settled before an expensive trial at taxpayer cost. As I stated in Tax Notes, "SCETs should be treated like any other tax case: decided on their own merits. It is important for IRS employees to have the authority to settle cases they deem appropriate."

While the settlement terms of Townley are currently unknown, this likely indicates that the DOJ does not believe that a jury will feel the same way about the valuation of a conservation easement as the Tax Court has in recent cases.

In addition to the Tax Notes article below,

The Internal Revenue Service agreed to settle a $43 million valuation dispute over a conservation easement donated by the co-founder of the Zaxby's restaurant chain and his wife, prompting a Georgia federal court Thursday to cancel next month's anticipated jury trial.

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