T.C. Mem o. 2 01 6- 53

UNITED STAT ES TAX COURT BAYNE FRENCH AND CHRISTINE FRENCH, Pet it io ne rs v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 11 71 5- 13 . Fi le d M arch 23 , 20 16 . Ro ss P. Keog h a ndW il li am E. McCarth y , forpe ti ti on ers . In gaC. Plu ci ns ki -Ho lb ro ok , forres po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION MARVEL, Ju dg e: In ano ti ce o f de fic ie nc y th e In te rn al Rev enue Serv ic e (IRS or r es po nd en t) d et erm in edde fic ie nc ie s i n p et it io ne rs ’ 20 06 , 20 07 , and20 08 Fed eral in co m e ta x o f $1 1,1 68 , $1 4,8 82 , and$3 ,17 6, re sp ect iv el y , ari si ng fro m pe ti ti on ers ’ cl ai m edcarry ov er ch ari tabl e co nt rib ut io n d educ ti on s. Th e cl ai m ed ch ari tabl e co nt rib ut io n d educ ti on s ar e rel at edto a 20 05 co nv ey an ce t o t he- 2 -

[* 2] Mo nt an a Lan d R el ia nc e (MLR ) of a co ns erv at io n e as em en t o n und ev el op ed ru ral lan d i n M on tana . The i ss ue s fo r de ci si on are: (1) whet he r pe ti ti on ers co m pl ie d wi th th e co nt em

po ran eo us writ te n a ckno wled gm en t re qu ire m en t o f se ct io n 1 70 (f)(8 ); (2) whet he r pe ti ti on ers ha d an o wne rs hi p i nt eres t i n t he 1 pr op erty ; an d (3 ) whe th er p et it io ne rs pro pe rly val ue d the co ns erv at io n e as em en t. Bec au se we ho ldth atpe ti ti on ers di d n otco m pl y with t he st ric t s ub st an ti at io n requi rem en ts of s ect io n 1 70 (f)(8 )(B) an d a re the refo re n oten ti tl edto th e cl ai m ed carry ov er ch ari tabl e co nt rib ut io n d educ ti on s, we n eedno t an d d o n otde ci de whe th er p et it io ne rs ha d a n o wne rs hi p i nt eres t i n t he pro pe rty or wh ethe r pe ti ti on ers pro pe rly val ue d the co ns erv at io n e as em en t. FINDINGS OF FACT So m e o f th e fac ts ha ve be enst ip ul at edan d a re s o fo un d. Th e st ip ul at ed fact s an d fa ct s drawnfro m st ip ul at edex hi bi ts are i nc or po rat edhe rei n b y

th is refe ren ce. Pet it io ne rs res id edin Mo nt an a whe n t he y pe ti ti on edth is Co urt. Pet it io ne rs ass ert , andwe wil l as su m e fo r pu rp os es of t hi s ca se , th atth e fo ll owi ng fact s re ga rd in g t he form at io n a ndex is te nc e o f certa intru st s ar e true .

Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al 1 Rev enue Co de (Co de ) in effe ctforth e y ears at i ss ue , andall Ru le refe ren ces are t o th e Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e.- 3 -

[* 3] Pet it io ne r Bayne Fre nc h’s p aren ts , Davy andPri sc il laFren ch , form edin 19 93 th e Dav y

A. Fren ch an d P ris ci ll a A. Fren ch Trus t (F ren ch Trus t) andserve d as tru st ees . Betwe en19 78 an d 1 99 9 Dav y an d P ris ci ll a Fre nc h a ndth e Fre nc h Trus t ac qu ire d fo ur

co nt ig uo us bu t s ep arat e p arce ls (pr op erty at i ss ue ). Davy and Pri sc il laFren ch , eit he r in di vi du al ly or as tru st ees of t he Fren chTrus t, tran sf erre d va rio us in te res ts in th e p ro pe rty at is su e to pe ti ti on er Ba yne Fren ch , hi s s is te r Mo ne tt e Fre nc h Lem

bk e, an d the Mo ne tt e R. Fre nc h a ndBayne A. Fren ch Trus t (MB F Tru st ). Pet it io ne r Bayne Fre nc h a ndMo ne tt e Fre nc h Lem bk e subs eque nt ly tra ns ferr edth ei r in di vi du al in te res ts inth e p ro pe rty at is su e to th e MB F Tru st . On Dec em

be r 29 , 20 05 , Davy A. Fren chan d P ris ci ll a A. Fren ch , as t ru st ees of th e Fre nc h Tru stan d a s t ru st ees of the Cam renK. Lem

bk e Tru st , an d M on et te

2 Fren ch Lem

bk e an d B ayne A. Fren ch , as t ru st ees of t he MBF Tru st , gra nt eda co ns erv at io n e as em en t o n t he pro pe rty at is su e to th e MLR. The co ns erv at io n 3 eas em en t was m em or ia li zedin a de edof c on se rv at io n e as em en t (c on se rv at io n de ed ) si gn edby the tru st ees of t he th ree t ru st s an d arep res en ta ti ve of t he MLR.

Res po nd en t que st io ns whet he r th e Fre nc h Tru stan d t he Cam renK. 2 Lem bk e Tru stex is t. Whethe r th e trus ts ex is t i s i m m at eri al to th e Co urt’s an al y si s bu t p ro vi de s u se fu l co nt ex t fo r th e p art ie s’ arg um en ts . The pa rti es st ip ul at edth atth e MLR i s a “ qu al ifi edorg an iz at io n” for 3 pu rp os es of s ec. 1 70 (h )(1 )(B) an d i s t ax -ex em ptun de r se c. 50 1( c)(3 ).- 4 -

[* 4] The co ns erv at io n d eedco nt ai ne d c ov en an ts in te nd edto pre se rv e th e “ ru ral , ag ric ul tu ral an d n atur al sce ni c qua li ti es of t he areaby the ret en ti on of s ig ni fic an t op ensp ace f

ora va rie ty of us es in cl ud in g wi ld li fe h ab it at , recre at io n, fo res t m an ag em en t, an d a gr ic ul tu ral pu rp os es ”. The co ns erv at io n d eedst at edth atth e 4 co ns id erat io n fo r th e co ns erv at io n e as em en t was th e m utua l co ve na nt s i n t he de ed . The co ns erv at io n d eedst at edno th in g abo utth e n atur e o r ex te ntof t he own ers hi p in te res t tha t ea ch of t he tru st s h adinth e p ro pe rty at is su e, if an y . Nor d iditst at e whe th er the MLR h adpro vi de d g oo ds or s erv ic es inreturn fo r th e co ns erv at io n eas em en t o r whe th er the co ns erv at io n d eedco ns ti tu te d t he en ti re ag reem en t be twee n the th ree t ru st s an d t he MLR. Dav y Fren ch hi redanap pr ai se r to pre pare a re po rt e st im at in g t he cas h v al ue of th e co ns erv at io n e as em en t. OnMarc h 3 , 20 06 , th e ap pr ai se r is su eda rep ort tha t va lu edth e en ti re co ns erv at io n e as em en t at$1 .1 m il li on . Peti ti on ers va lu edBayne Fren ch ’s pro po rti on al sh are o f th e co ns erv at io n e as em en t at$3 50 ,97 1. Pet it io ne rs ti m el y

fil edth ei r joi ntFed eral in co m e ta x re tu rnforth e 2 00 5 ta xabl e y ear o n aFo rm

10 40 , U.S. Ind iv idua l In co m e Tax Return, wi th ou t cl ai m in g ach ari tabl e co nt rib ut io n d educ ti onforth e co ns erv at io n e as em en t. Onor The pa rti es do no t d is pu te th atth e co ns erv at io n e as em en t was “ ex cl us iv el y 4 fo r co ns erv at io n p ur

po se s” , as re qu ire d b y

sec . 17 0( h) (1 )(C) .- 5 -

[* 5] be fo re Ap ril 15 , 20 06 , pet it io ne rs am en de d the ir 2 00 5 re turnon a Fo rm 10 40 X, Am en de d U.S. In di vi du al Inc om e Tax Return, an d c la im eda ch ari tabl e co nt rib ut io n d educ ti on of $ 56 ,79 6. Ona Fo rm 82 83 , Non cas h C harit ab le Co nt rib ut io ns , att ach edto th e am en de d 2 00 5 re tu rn , pet it io ne rs rep orte d t ha t the y ha d c on tri bu te d aco ns erv at io n e as em en t i n 2 00 5, an d B ayne Fren ch ’s pr op orti on al sh are o f th e co ns erv at io n e as em en t was va lu edat $ 35 0,9 71 . After pe ti ti on ers ha d fi le d t he ir 2 00 5 a m en de d re tu rn , an M LR rep res en ta ti ve st at edin a le tt er t o Dav y

Fren ch an d P ris ci ll a Fre nc h d at edJune 6, 2 00 6, tha t “ no go od s o r se rv ic es were furn is he d i n re sp ectof your eas em en t d on at io n.” Pet it io ne rs ti m el y

fil edth ei r 20 06 -0 8 jo in t Fe de ral in co m e ta x re tu rn s. Pet it io ne rs cla im edfor

20 06 -0 8 c arryov er ch ari tabl e co nt rib ut io n d educ ti on s wi th res pe ctto th e co ns erv at io n e as em en t o f $4 4,6 87 , $5 7,1 54 , and$3 1,5 72 , res pe ct iv el y . Res po nd en t ex am in edpe ti ti on ers ’ joi ntFed eral in co m e ta x re tu rn s fo r th e 20 06 -0 8 t ax ab le y ears , andres po nd en t’s ap pr ai se r va lu edth e en ti re co ns erv at io n eas em en t at$4 32 ,00 0. On Feb ru ary 28 , 20 13 , res po nd en t i ss ue d ano ti ce o f 5 de fic ie nc y

to pe ti ti on ers di sa ll owi ng th e carry ov er ch ari tabl e co nt rib ut io n Pet it io ne rs ’ ap pr ai se r va lu edth e en ti re co ns erv at io n e as em en t g ran te d b y 5 th e d on orgro up at $ 1.1 m il li on . See s up ra p . 4.- 6 -

[* 6] de du ct io ns be cau se pe ti ti on ers ha d fa il edto pro ve th atth ey ha d a n o wne rs hi p in te res t i n t he pro pe rty at is su e, ha d fa il edto ob ta in a co nt em po ran eo us writ te n ackno wled gm en t tha t co m pl ie d wi thth e subs ta nt ia ti on requi rem en ts of s ect io n 17 0( f)(8 ), an d h adfai le d t o p ro ve th e v al ue of the co ns erv at io n e as em en t. Pet it io ne rs ti m el y

pe ti ti on edth is Co urt.

OPINION I. The Pres um

pt io n o f Co rrec tn es s an d the Bu rd enof P ro of Gen eral ly, th e Co m

m is si on er’s d et erm in at io n o f a d efi ci en cy is pre su m ed co rrec t, an d t he tax pa y er b ears th e b ur de n o f pr ov in g tha t the de te rm in at io n i s im pr op er. Ru le 14 2( a)(1 ); Welc h v . Helv eri ng , 29 0 U.S. 1 11 , 11 5 (1 93 3) . Howev er, i f a t ax pa y er p ro du ces cred ib le ev id en ce with re sp ectto an y factua l 6 is su e rel ev an t t o a sc ert ai ni ng th e ta xp ay er’s l iabi li ty for an y tax im po se d b y subt it le A or B o f th e Co de an d s at is fie s t he requi rem en ts of s ect io n 7 49 1( a)(2 ), th e b ur de n o f pr oo f on any su ch is su e sh ift s t o t he Co m m is si on er. Sec . 74 91 (a)( 1) . Sect io n 7 49 1( a)(2 ) requi res a ta xp ay er t o d em on st rat e th athe or s he (1 ) co m pl ie d wi th th e requi rem en ts un de r th e Co de to subs ta nt ia te an y it em , (2)

“ Cred ib le ev id en ce i s t he qu al it y of e vi de nc e whi ch , aft er cr it ic al an al y si s, 6 th e co urt wo ul d fi ndsu ffi ci en t upo n wh ic h t o b as e a d eci si on on th e is su e if no co nt rary evi de nc e were s ub m it te d (wi th ou t re ga rdto th e jud ic ia l p res um pt io n o f IRS c orrect ne ss ).” Hig be e v . Comm is si on er, 1 16 T.C. 43 8, 4 42 (20 01 ) (quo ti ng H.R. Co nf

. Rep t. No . 10 5- 59 9, at24 0- 24 1 (1 99 8) , 19 98 -3 C.B. 7 47 , 99 4- 99 5) .- 7 -

[* 7] m ai nt ai ne d a ll reco rd s re qu ire d u nd er the Co de , and(3) co op erat edwith reas on ab le reque st s b y

th e Sec ret ary forwitne ss es , in fo rm at io n, d oc um en ts ,

7 m eet in gs , andin te rv ie ws. See als o Hi gb ee v . Comm is si on er, 1 16 T.C. 43 8, 4 40 - 44 1 (2 00 1) . Alth ou gh pe ti ti on ers arg ue th atth e b ur de n o f pr oo f sh ou ldsh iftto res po nd en t, the y

ha ve no t p ro ve n t ha t the y m eetth e requi rem en ts of s ect io n 74 91 (a) o r es tabl is he d t he ir c om pl ia nc e wit h t he subs ta nt ia ti onan d re co rdke ep in g requi rem en ts . See s ec. 7 49 1( a)(2 )(A) an d (B ). Pet it io ne rs th eref or e b ear t he bu rd enof p ro of

. II. Co nt em

po ran eo us Writ te n Ackno wled gm en t Sect io n 1 70 (f)(8 )(A) p ro vi de s t ha t n o d educ ti onsh al l b e al lo wedfor ch ari tabl e co nt rib ut io ns of $ 25 0 o r m or e u nl es s the co nt rib ut io n i s s ub st an ti at ed with aco nt em

po ran eo us writ te n a ckno wled gm en t fr om th e d on ee o rg an iz at io n. 8 The co nt em

po ran eo us writ te n a ckno wled gm en t “ ne edno t t ak e an y pa rti cu la r fo rm ”, se e Sch rimshe r v. C omm is si on er, T.C. Mem o. 2 01 1- 71 , sl ip op . at 6 (quo ti ng H.R. Con f. Rep t. No . 10 3- 21 3, at56 5 n .32 (19 93 ), 19 93 -3 C.B. 3 93 , The term “ Secr et ary” m ean s t he Secr et ary of th e Treas ury

or h is de le ga te . 7 Sec. 7 70 1( a)(1 1) (B). Sec. 1 70 (f)(8 )(D) p ro vi de s an ex cep ti on to th e co nt em po ran eo us writ te n 8 ackno wled gm en t re qu ire m en t. Pet it io ne rs di d n otass ertth atth is ex cep ti on ap pl ie s.- 8 -

[* 8] 44 3) , bu t i t m

us t m eetth e requi rem en ts of s ect io n 1 70 (f)(8 )(B) . The d oc tri ne of subs ta nt ia l co m

pl ia nc e d oe s n otap pl y

to ex cu se co m

pl ianc e wit h t he st ric t subs ta nt ia ti on requi rem en ts of s ect io n 1 70 (f)(8 )(B) . Averyt v. Co m m is si on er, T.C. Mem o. 2 01 2- 19 8, s li p o p. at10 . If a ta xp ay er fa il s t o m eetth e st ric t subs ta nt ia ti on requi rem en ts of s ect io n 1 70 (f)(8 ), th e en ti re d educ ti on is di sa ll owe d. Se e se c. 17 0( f)(8 )(A); Add is v. Co m m is si on er, 3 74 F.3d88 1, 8 87 (9 th Cir . 20 04 ) (“ The de te rren ce v al ue of s ect io n 1 70 (f)(8 )’s to ta l d en ia l o f a de du ct io n c om

po rts with the effe ct iv e ad m in is tra ti on of asel f-as se ss m en t an d s el frep orti ng syste m .”), aff’g 1 18 T.C. 52 8 (2 00 2) . Sect io n 1 70 (f)(8 )(B) pro vi de s t ha t a c on te m po ran eo us writ te n ackno wled gm en t m

us t i nc lu de : (i) The a m ou ntof c as h a nda de sc rip ti on (bu t n otva lu e) o f an y pr op erty ot he r th ancas h c on tri bu te d. (ii ) Whe th er the do ne e o rg an iz at io n p ro vi de d a ny go od s o r se rv ic es in co ns id erat io n, i n wh ol e o r in pa rt, fo r an y pro pe rty de sc rib edinclaus e (i ). (ii i) A d es cri pt io n a ndgo odfai th est im at e o f th e v al ue of any go od s o r se rv ic es refe rredto inclaus e (i i) * * * . A writ te n a ckno wled gm en t i s co nt em po ran eo us if t he tax pay er o bt ai ns th e ackno wled gm en t o n o r be fo re the earl ie r of th e d at e th e return was fil edor t he du e da te (in cl ud in g e xt en si on s) for fil in g t he return fo r th e y ear i n wh ic h the ch ari tabl e- 9 -

[* 9] co nt rib ut io n was m ad e. See s ec. 1 70 (f)(8 )(C) . It fo ll ows th atpe ti ti on ers ha d to ob ta in a writ te n a ckno wled gm en t co nt em po ran eo us with t he ir 2 00 5 re turn be cau se th ey

m ad e th e ch ari tabl e co nt rib ut io n i n 2 00 5. 9 Pet it io ne rs ha ve two writ te n a ckno wled gm en ts th atm ay sat is fy th e requi rem en ts of s ect io n 1 70 (f)(8 )(B) . The fi rs t i s t he co ns erv at io n d eedreco rd ed on Decem

be r 29 , 20 05 . The s eco ndis th e le tt er fro m anMLR rep res en ta ti ve to Dav y an d P ris ci ll a Fre nc h d at edJu ne 6, 2 00 6. Pe ti ti on ers fil edth ei r 20 05 am en de d re tu rnonor b efo re Ap ril 15 , 20 06 . The l et te r is th eref or e n ot co nt em po ran eo us with p et it io ne rs ’ 20 05 return a ndcan no t s at is fy th e subs ta nt ia ti on requi rem en ts . See s ec. 1 70 (f)(8 )(C) . Becau se th e co ns erv at io n de edis th e o nl y

writ te n a ckno wled gm en t tha t i s co nt em po ran eo us with pe ti ti on ers ’ 20 05 return, we m us t d eci de whet he r th e co ns erv at io n d eedco m pl ie s with t he st ric t s ub st an ti at io n re qu ire m en ts of s ect io n 1 70 (f)(8 )(B) . Sect io n 1 70 (f)(8 )(B) (ii ) requi res th ata co nt em po ran eo us writ te n ackno wled gm en t s ta te whethe r th e d on ee o rg an iz at io n p ro vi de d g oo ds or s erv ic es

Altho ug h 2 00 5 i s n oton e o f th e y ears at i ss ue , th e Co urt m ay co ns id er fa ct s 9 rel at in g t o t ax y ears th atare n otot he rwis e wit hi n t he Co urt’s jur is di ct io n wh ere ne ces sa ry to co rrec tl y

red et erm in e th e am ou ntof t he tax de fic ie nc y for th e y ears at is su e. See s ec. 6 21 4( b) .- 10 -

[* 10 ] in ex ch an ge forth e d on or ’s cha rit ab le co nt rib ut io n. Th e p art ie s d is pu te whe th er the co ns erv at io n d eedcansat is fy th is requi rem en t. W e h av e h el d t ha t a d eedof c on se rv at io n e as em en t m ay sat is fy th e subs ta nt ia ti on requi rem en ts of s ect io n 1 70 (f)(8 ), in cl ud in g s ub pa rag rap h (B )(i i). See, e.g ., Averyt v. Co m

m is si on er, T.C. Mem o. 2 01 2- 19 8; Simm on s v . Co m m is si on er, T.C. Mem o. 2 00 9- 20 8, af f’d, 64 6 F .3d6 (D.C. Ci r. 20 11 ). Gen eral ly, to sat is fy

th e requi rem en t o f se ct io n 1 70 (f)(8 )(B) (ii ), th e d eedm us t co nt ai n ast at em en t ab ou t wh ethe r th e d on ee p ro vi de d g oo ds or s erv ic es for th e co nt rib ut io n. Sc hr im sh er v . Comm is si on er, s li p. o p. at8-9 . Whe n ade eddo es no t co nt ai n a n e xp li ci t s ta te m en t, thi s C ou rt h as lo ok edto th e d eedas awho le to de te rm in e whe th er the do ne e p ro vi de d g oo ds or s erv ic es . See RP Go lf, LLC v . Co m m is si on er, T.C. Mem o. 2 01 2- 28 2, at*1 0- *1 1; Averyt v . Comm is si on er, s li p op . at 1 2- 13 . Inbo th Averyt an d R P Gol f, LLC th e ta xp ay ers cla im edch ari tabl e co nt rib ut io n d educ ti on s fo r co ns erv at io n e as em en ts an d re li edon th e d eed s t o subs ta nt ia te th e d educ ti on s. RP Go lf, LLC v . Comm is si on er, at*8 ; Av eryt v. Co m m is si on er, s li p o p. at12 . Neithe r de edst at edwhet he r th e d on ee o rg an iz at io n pr ov id edan y

go od s o r se rv ic es in ex ch an ge forth e ch ari tabl e co nt rib ut io n. RP Gol f, LLC v. Co m

m is si on er, at*1 0- *1 1; Averyt v . Comm is si on er, s li p o p. at12 .- 11 -

[* 11 ] Howev er, i n Av eryt th e d eedst at edth atth e co ns erv at io n e as em en t was gr an te d fo r th e p ur

po se of c on se rv at io n andth atth e d eedwas t he en ti re ag reem en t of th e p art ie s. See Averyt v . Comm is si on er, s li p o p. at4, 1 2. Mo reo ve r, in RP Gol f, LLC v. Co m

m is si on er, at*1 0, the de edst at edth atth e co ns erv at io n eas em en t was m ad e “ in co ns id erat io n o f th e co ve nant s an d re pr es en ta ti on s co nt ai ne d h erei n a ndforot he r go odan d v al uabl e co ns id erat io n” ; b utth e d eeddi d no t i nc lu de an y

co ns id erat io n o f an y

va lu e o th er tha n t he pre se rv at io n o f th e pr op erty . Add it io na ll y , si m il ar t o t he de edinAveryt, the de edinRP Go lf, LLC v . Co m m is si on er, at*1 0- *1 1, s ta te d t ha t i t was th e en ti re ag reem en t o f th e p art ie s. Inth e li gh t o f th es e fac ts th e Co urt i n Av eryt andRP Go lf, LLC h el d t ha t the ta xp ay ers ha d s ub st an ti at edth ei r ch ari tabl e co nt rib ut io ns be cau se th e d eed s “ ta ke n as a who le ” p ro ve d c om

pl ia nc e wit h s ect io n 1 70 (f)(8 )(B) (ii ). RP Go lf, LLC v . Co m m is si on er, at*1 0- *1 1; Averyt v . Comm is si on er, s li p o p. at12 -1 3. 1 0 The ab ov e an al y si s d em on st rat es th atwhen a de edof c on se rv at io n e as em en t do es no t ex pl ic it ly stat e whe th er the do ne e p ro vi de d g oo ds or s erv ic es inex ch an ge fo r th e ch ari tabl e co nt rib ut io n, the de edtak enas awho le m us t p ro ve co m

pl ia nc e Altho ug h i n RP Gol f, LLC v. Co m m is si on er, T.C. Mem o. 2 01 2- 28 2, the 1 0 Co urt h el d t ha t the tax pa y ers ha d c om pl ie d wi thth e requi rem en ts of s ec. 17 0( f)(8 )(B) , th e p art ie s p ro ceed edto tri al on ot he r is su es , andth atcas e is pe nd in g be fo re the Co urt. See RP Go lf, LLC v . Comm is si on er, T.C. Dkt . No. 2 78 73 -0 8 (fi le d No v. 1 9, 2 00 8) .- 12 -

[* 12 ] with s ect io n 1 70 (f)(8 )(B) (ii ). RP Go lf, LLC v . Comm is si on er, at*1 0- *1 1; Ave ryt v . Comm is si on er, s li p o p. at12 -1 3. As de sc rib edinAveryt an d R P Gol f, LLC, fact or s t ha t s up po rt c om pl ia nc e are th atth e d eedreci te s n o c on si de rat io n ot he r th anth e p res erv at io n o f th e p ro pe rty andth atth e d eedco nt ai ns a pr ov is io n st at in g t ha t the de edis th e en ti re ag reem en t o f th e p art ie s. See RP Go lf, LLC v . Co m m is si on er, at*1 0- *1 1; Averyt v . Comm is si on er, s li p o p. at12 -1 3. Th is in fo rm at io n a ll ows th e IRS to co nc lu de th ata ta xp ay er co rrec tl y rep orte d h is or he r ch ari tabl e co nt rib ut io n a ndth atth e ta xp ay er d idno t re cei ve an y co ns id erat io n fo r th e co nt rib ut io n. Se e Dur de n v . Comm is si on er, T.C. Mem o. 2 01 2- 14 0, s li p o p. at6-8 (no ti ng th ata st at em en t ab ou t wh ethe r go od s o r se rv ic es were p ro vi de d fo r a ch ari tabl e co nt rib ut io n i s n eces sa ry to de te rm in in g t he am ou ntof t he de du ct io n) . Inth e in st an t ca se , th e co ns erv at io n d eeddi d n otst at e whe th er the do ne e pr ov id edgo od s o r se rv ic es in ex ch an ge forth e ch ari tabl e co nt rib ut io n. Th eref or e we m us t an al y ze wh ethe r th e d eedtak enas awho le sh ows co m pl ia nc e wit h se ct io n 1 70 (f)(8 )(B) (ii ). Altho ug h t he co ns erv at io n d eedin cl ud es pro vi si on s s ta ti ng th atth e in te ntof th e p art ie s i s t o p res erv e th e p ro pe rty, tho se pro vi si on s d o n otco nf irm th atth e pr es erv at io n o f th e p ro pe rty was th e o nl y co ns id erat io n b ecau se th e d eeddi d n ot in cl ud e a p ro vi si on st at in g t ha t i t i s t he en ti re ag reem en t o f th e p art ie s. With ou t- 13 -

[* 13 ] su ch a pr ov is io n, the IRS co ul d n otha ve de te rm in edby revi ewin g t he co ns erv at io n d eedwhet he r pe ti ti on ers rece iv edco ns id erat io n i n e xc ha ng e fo r th e co nt rib ut io n o f th e co ns erv at io n e as em en t. We con cl ud e, th eref or e, th atth e co ns erv at io n d eedtak enas awho le is in su ffi ci en t t o s at is fy sec ti on 17 0( f)(8 )(B) (ii ). Becaus e p et it io ne rs ’ co nt em po ran eo us writ te n a ckno wled gm en t do es no t co m

pl y with s ect io n 1 70 (f)(8 )(B) (ii ), pe ti ti on ers are n oten ti tl edto an y cl ai m edcarry ov er ch ari tabl e co nt rib ut io n d educ ti on s, s ee s ec. 1 70 (f)(8 )(A), an d res po nd en t’s d et erm in at io n i s s us ta in ed . W e h av e co ns id eredth e p art ie s’ rem ai ni ng arg um en ts , andto th e ex te ntno t di sc us se d abo ve , con cl ud e th os e arg um en ts are i rrel ev an t, m oo t, o r wit ho utm eri t. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te red fo r res po nd en t.