irs-loses-easement-case-because-of-untimely-notice

6119602 - railroad tracks corssing and going in different directions6119602 - railroad tracks corssing and going in different directions

IRS Loses $76.5 Million Easement Case Because of Untimely Notice

November 10, 2025

Tax Notes Federal

Partners Hale Sheppard and Cassandra "Sandy" Bradford were quoted in Tax Notes Federal discussing a recent Tax Court decision in Bayou Serpent Property LLC v. Commissioner, where the court ruled that the IRS issued a final partnership adjustment (FPA) too late under the Bipartisan Budget Act’s audit rules. This resulted in the partnership avoiding nearly $39.6 million in taxes and penalties. Sandy emphasized that the case underscores the importance of challenging regulations that conflict with statutory provisions, and Hale highlighted the practical impact, noting that the IRS’s error saved the partners tens of millions of dollars.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Services

Key contacts

halesheppard@eversheds-sutherland

Hale E. Sheppard

Partner

Atlanta, United States

sandybradford@eversheds-sutherland

Cassandra S. Bradford

Partner

Atlanta, United States

Latest Insights

  • legal updates
  • legal updates
  • legal updates
  • legal updates

Latest News

  • firm news
  • client news
  • client news
  • firm news

Latest Events

law books in bookshelf

legal updates

August 24, 2026

modern office interior glass roof geometry architectural light lines

legal updates

August 24, 2026

Curved modern office building glass exterior

legal updates

August 24, 2026

Close up of two people signing documents in office

legal updates

August 21, 2026

© Eversheds Sutherland 2026. All rights reserved. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. For further information about these Eversheds Sutherland Entities and Eversheds Sutherlands’ structure please see the Legal Notices page of this website. For information on Konexo please also see the Legal Notices page of this website