Conservation Easements Under IRS Scrutiny: Key Updates for Taxpayers

ARTICLE | October 22, 2024

Authored by Vasquez + Company

The IRS has increased its scrutiny of conservation easement transactions, particularly syndicated conservation easements (SCEs), which have been widely criticized for their potential to generate excessive tax deductions through inflated appraisals and other means. The article "IRS Targets Certain Conservation Easements" examines the implications of recent legislative, regulatory, and enforcement actions for conservation easement participants.

Key Points:

• Intensified Oversight: Conservation easements, especially SCEs, have come under fire for inflated deductions. Recent IRS regulations and legislative updates aim to curb abuses.
• Government Actions: The SECURE 2.0 Act and final IRS regulations now limit excessive deductions for conservation easements and impose specific reporting requirements for partnerships and S corporations.
• Enforcement and Penalties: The IRS has also introduced settlement opportunities and is pursuing aggressive legal action against promoters of fraudulent SCEs, including prison sentences and restitution for offenders.

For more information, read the full article here.

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