On March 21, 2022, the Tax Court issued a Memorandum Opinion in the case of Oxbow Bend LLC v. Commissioner (T.C. Memo. 2022-23). The primary issue presented in Oxbow Bend LLC v. Commissioner was whether a telephone conference in which IRS agent stated to taxpayer’s representative what adjustments would be made and what penalties were under consideration constituted an “initial determination” of penalties that would require timely supervisory approval under IRC § 6751(b)(1). Held: Not so much. Background to Oxbow Bend LLC v. Commissioner In September 2014 Oxbow acquired roughly 133 acres of land in Elmore County, Alabama. On December 4, 2014, Oxbow granted to the National Wild Turkey Federation Research Foundation (NWT) a conservation easement over the land. Three weeks later, Oxbow donated a fee simple interest in the land to a passthrough entity wholly owned by NWT. Oxbow timely filed Form 1065, U.S. Return of Partnership Income, for…