20 Recent IRS Enforcement Actions in Conservation Easement Disputes: Awareness and Preparation Are Key

There is so much misinformation, hyperbole, distortion, chest-thumping, and other “noise” surrounding conservation easement disputes nowadays that it is difficult to get to the truth. Most rational people agree on a few things, though. these include that Congress has expressly incentivized donations of real property interests to charity for over 50 years, increasing numbers of taxpayers have pooled their interests recently to take advantage of this tax benefit, and the Internal Revenue Service(“IRS”),convinced that some taxpayers are inappropriately exploiting the system, has implemented a long list of tactics to challenge what it calls syndicated conservation easement transactions (“SCETs”). However, there is considerable disagreement about whether the IRS’s actions have gone too far, undermining both congressional intent and public confidence in the integrity of tax enforcement procedures. 

This article explains the rules related to conservation easement donations, long-standing support by Congress for corresponding tax enticements, and 20 recent enforcement actions by the IRS designed to halt what it considers abusive taxpayer behavior.

Read the full article here.

About Hale E. Sheppard

HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

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