ICYMI: Easement Proposal’s Effective Date Draws Criticism

Tax Notes

Kristen A. Parillo

October 7, 2021

A proposal by House Ways and Means Committee Democrats that would deny deductions from syndicated easement donations has sparked a debate over the fairness of the proposed retroactive effective date.

Opponents of the provision, included in proposed pay-fors advanced September 13 by Ways and Means Democrats as part of the $3.5 trillion budget reconciliation process, argue that its December 23, 2016, effective date is unduly harsh and contrary to sound tax policy.

The provision’s supporters counter that calling it retroactive is disingenuous because the effective date is tied to the day the IRS released Notice 2017-10, 2017-4 IRB 544, designating syndicated easement deals as listed transactions.

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