The Internal Revenue Service is looking for a few good participants in conservation easements.
Next month, the agency will mail limited-time settlement offers to certain taxpayers who participated in syndicated conservation easements and substantially similar transactions that are under audit in its Large Business & International and Small Business and Self-Employed divisions. The letters will have applicable terms and timelines to respond.
The settlement offer requires substantial concession of the income tax benefits and the application of penalties. Taxpayers under examination who receive a letter but opt not to participate will continue to face enforcement actions, including potential full disallowance of the charitable contributions associated with the easements and the imposition of penalties.
The IRS has consistently disallowed the tax benefits claimed by taxpayers in abusive SCEs, which have appeared on the
Taxpayers who don’t receive a letter are ineligible for this resolution, as are taxpayers with cases pending in the Tax Court.
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