Syndicated Conservation Easements

[James]

Looks like the IRS is on the hunt. I just received notification that the IRS is going to aggressively challenge syndicated conservation easements (the link is here.)

I know there was a good Forbes article which discussed one case fell due to lack of basic compliance with charitable contribution requirement. The article discusses that the IRS believes that most of these arrangements fail to meet the most basic of compliance with the statute and regulations regarding claiming charitable contributions.

I (and Eric can correct me here) thought the tone of this post by the IRS was unusually strong and I think we are going to see a lot of cases here in short order. Thought I would share as the article seemed to give taxpayers and other involved parties a short window of time to get things fixed on an amended return before serious civil and criminal penalties fall upon their heads.

Jim Wade

[Eric Green]

Jim, you are correct that the IRS is going to go after these arrangements aggressively. Commissioner Rettig has made it clear he believes these are mostly BS.

[Vicki Thompson]

Can you please supply the resources mentioned in the original post for the IRS notification and Forbes article? Thank you.

[James Wade]

Vicki,

The posts are finicky and wont let me post any links (it refuses to post either using the link function or if I just past the address). Just look for notice 2019-10 from the IRS and articles by Peter J. Reilly at Forbes regarding conservation easements.

Sorry, looks like a technical issue.

Jim

[James Wade]

Vicki,

Here is the link to the IRS: https://www.irs.gov/newsroom/irs-increases-enforcement-action-on-syndicated-conservation-easements

Here is the link to the Forbes article: https://www.forbes.com/sites/peterjreilly/2018/12/20/crackdown-on-conservation-easement-syndications/#9f176216fafehttps://www.forbes.com/sites/peterjreilly/2018/12/20/crackdown-on-conservation-easement-syndications/#9f176216fafehttps://www.forbes.com/sites/peterjreilly/2018/12/20/crackdown-on-conservation-easement-syndications/#9f176216fafe

Jim

[James Wade]

Vicki,

Here you go.

IRS link is: click here.

Forbes link is: click here.

Jim

[James Wade]

Vicki,

I tried to post the links but the link function isn’t working. Here is the IRS link: https://www.irs.gov/newsroom/irs-increases-enforcement-action-on-syndicated-conservation-easements or you could just go to the IRS.gov and look for notice 2019-10

Here is the forbes link: https://www.forbes.com/sites/peterjreilly/2018/12/20/crackdown-on-conservation-easement-syndications/#7cc2112116fa or you can just search for forbes article syndicated conservation easements and look for articles written by Peter J. Reilly.

You can just copy the link text or do the search.

Jim

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