The company behind the mostly undeveloped Hawks Bluff community venture on the Cumberland Plateau in Bledsoe County is being held accountable for a “misstatement penalty” by the Internal Revenue Service and a Federal Tax Court judge.
Glade Creek Partners, LLC, the owners of Hawks Bluff, claimed a $17.5 million charitable contribution deduction for its 2012 short tax year period after it donated a 1,313 acre conservation easement to Atlantic Coast Conservancy, Inc.
The deed of the conservation easement, according to court documents, is “intended to preserve open space for wildlife habitats threatened by development and provide significant public benefit, scenic views of the Cumberland Plateau, and agricultural land.”
The IRS challenged the charitable contribution and sought a 40-percent penalty under tax code for a “gross misstatement on the valuation of the easement” and a 20-percent penalty for the “misstatement of the value of the charitable contribution.”
For more see the November 26 issue of The Bledsonian Banner.