Court Accepts Settlement Agreement in Conservation Easement Case

DMB Realco, LLC, by and through Drew M. Brown, a Partner Other Than the Tax Matters Partner,
Plaintiff,
v.
United States of America,
Defendant.

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA

STIPULATED JUDGMENT

Pursuant to the parties' Stipulation to Judgment (Doc. 68) and for good cause shown,

IT IS HEREBY ORDERED granting the parties' Stipulation (Doc. 68).

IT IS FURTHER ORDERED vacating oral argument on all pending motions set for September 15, 2017 at 1:30 p.m. and finding all pending motions (Doc. 42, 48) as moot.

IT IS FURTHER ORDERED:

1. DMB Realco, LLC, is allowed a tax year 2006 deduction for a qualified conservation contribution in the amount of $6,610,000.

2. An accuracy-related penalty, under I.R.C. § 6662, for negligence or the disregard of rules and regulations, applies at the partnership level. By agreement of the parties, however, this penalty shall apply at the rate of 15% of the underpayment of tax.

3. No gross valuation misstatement penalty applies.

4. No other penalty applies at the partnership level.

5. This judgment does not affect the ability of DMB Realco, LLC, or any of its partners to seek an abatement of interest under I.R.C. § 6404.

6. Each of the partners in DMB Realco, LLC, retains his or its rights under I.R.C. § 6230(c) to challenge any computational adjustments made as a result of this settlement agreement and/or to claim any refund or credit attributable to the application of this settlement to the partner.

7. The parties will bear their own fees and costs.

8. Final judgment is hereby entered as set forth above. The Clerk shall terminate this case.

Dated this 24th day of August, 2017.