Bargain Sales to Charities: Permanent Injunction Is Just the Beginning

Circular architectural building shot from belowCircular architectural building shot from below

Bargain Sales to Charities: Permanent Injunction Is Just the Beginning

January 26, 2026

United States
United States
United States
TAX NOTES FEDERAL

Those who organize aggressive transactions, as well as those who participate in them, often have something in common: They do not think broadly enough when deciding what to do if the Internal Revenue Service or Department of Justice were to start taking enforcement actions.  Why?  They might point to low audit rates, believe that their tax positions can withstand all scrutiny, expect tax insurance policies to cover bad outcomes, etc.  The most common reason is simpler; they often do not appreciate many steps the government regularly takes in combatting what it considers improper transactions.  Unawareness of intersecting actions and procedures can lead to big problems.  This article by Partner Hale Sheppard uses bargain sales to charities as a teaching tool, showing what a recent permanent injunction might mean for taxpayers, organizers, appraisers, tax-exempt organizations, and others.

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halesheppard@eversheds-sutherland

Hale E. Sheppard

Partner

Atlanta, United States

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