On February 3, 2020, the Tax Court issued a Memorandum Opinion in the case of Carter v. Commissioner (T.C. Memo. 2020-20). The issues presented in Carter v. Commissioner were whether the restrictions contained in a conservation easement violated IRC § 170(h) and whether the IRS had satisfied the prior written supervisory approval requirement of IRC § 6751(b)(1). Background to Carter v. Commissioner The petitioners, through their partnership, conveyed an easement to NALT, a “qualified organization” within the meaning of IRC § 170(h)(3), which easement restricts the use of the covered property and generally prohibits the construction or occupancy of any dwellings. Petitioner’s partnership retained the right, however, to build single-family dwellings in specified "building areas," the locations of which were to be determined, subject to NALT's approval. The partnership reported a charitable contribution deduction equal to the easement's purported value, and the petitioners claimed deductions on their individual returns equal…