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Ways individual tax returns were filed in 2020
transitional provision of Sec. 4940(c)(4)
(B). The revenue ruling allowed the stock
to be considered to have been held by
4.2
the foundation on Dec. 31, 1969, despite
the facts that, (1) under the residuary
bequest, the property that ultimately
9 (Numbers in millions)
passed to the foundation had not yet
been identified by that date, and (2) the
 Free File
stock wasn’t distributed until 1971 — a
degree of discretion that might have
encouraged the even greater latitude of 60.4  Paper
the letter ruling.
■ PMTA 2022-01  Other e-filed
83.5
— Paul Bonner is a JofA news writer.  Practitioner e-filed

Source: 2020 IRS Data Book, Tables 3 and 4.

Some tax forms that cannot be e-filed

Number filed
in 2021
Eleventh Circuit: Judicial For m W-7, Application for IRS Individual Taxpayer Identification 1,301,750
extinguishment proceeds Number
formula invalid For m 5472, Information Return of a 25% Foreign-Owned U.S. 264,396
Corporation or a Foreign Corporation Engaged in a U.S. Trade
The IRS’s interpretation of a or Business
conservation easement rule is For m 941-X, Adjusted Employer’s Quarterly Federal Tax Return or 217,235
struck down. Claim for Refund
Form 14039, Identity Theft Affidavit 181,578
By Shannon Veyon Jemiolo, CPA,
For m 1065-X, Amended Return or Administrative Adjustment 94,117
Ph.D., and Ian Redpath, J.D., LL.M.
Request (AAR)
Source: National Taxpayer Advocate, Annual Report to Congress 2021,
The Eleventh Circuit found the IRS’s
Most Serious Problem No. 8: E-Filing Barriers, Figure 2.8.1.
interpretation of the judicial extinguish-
ment proceeds formula for conservation
easements to be procedurally invalid
under the Administrative Procedure Act
(APA).
Facts: In 2012, David Hewitt made the grant due to property improvements deductions claimed in 2013 and 2014
a conservation easement contribution to would be subtracted from the fair market from the easement, claiming that the
the Pelican Coast Conservancy Inc. The value when determining the portion of easement deed did not meet the require-
IMAGE BY GAGA VASTARD/ISTOCK reserved Hewitt’s and his wife’s right contribution deductions for tax years bution deduction. The Hewitts petitioned
recorded deed of conservation easement
proceeds due the conservancy.
ments for a qualified conservation contri-
The Hewitts reported charitable
to build certain improvements on their
the Tax Court for a redetermination.
The Tax Court, in Hewitt, T.C. Memo.
2012, 2013, and 2014 related to the
property subject to the deed. The deed
2020-89, sided with the IRS due to
also provided that, in the event of a
easement. In 2017, the IRS sent a notice
judicial extinguishment of the easement,
of deficiency to the Hewitts disallowing
the deed’s wording regarding judicial
any increase in value after the date of
May 2022 | 35
journalofaccountancy.com the charitable contribution carryover extinguishment. Subtracting the value