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IRS Sends Settlement Offer Scare Tactic on Conservation Easements

National Taxpayers Union Foundation
By Pete SeppJoe Bishop-Henchman
July 01, 2020

The IRS may be struggling to catch up with 10 million pieces of unopened mail and long waits on its phone lines, but it found time last week to issue a “time-limited settlement offer” to taxpayers who have formed partnerships to claim conservation easement deductions.

Those familiar with NTU’s work may already be aware of the IRS war on conservation easements, a long-standing tax deduction for taxpayers who place easements on their property for conservation purposes. In December 2016, during the waning days of the Obama Administration, the IRS decided that while it had no problem with individuals who took the deduction, taxpayers who formed partnerships to donate land and took the deduction were “syndicates” engaging in sham transactions and needed to be stopped. Those taxpayers have since been targeted with draconian enforcement actions, new rules issued without public input and applying retroactively, and zealous valuation denials.

Read the full article in the National Taxpayers Union Foundation.


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