0 Conservation Easement Cases And The IRS Conservation easement cases have become a primary focus of the IRS. IRS Commissioner Koskinen's letter to the Senate Finance Committee confirmed that the IRS believes that most syndicated easement donation transactions are patently abusive
The cases can result in enormous tax assessments, interest and draconian penalties imposed. In some cases, there can be criminal exposure. Likewise, the attorneys or others who were marketing and setting up these transactions may be targeted by the IRS for severe penalties and other actions.
In Notice 2017-10, the IRS has put taxpayers and practitioners on notice that it considers certain syndicated conservation easement transactions to be tax avoidance transaction, identifying the transactions as "listed transactions," meaning they could be considered abusive.
Section 170(e)(1) of the Tax Code allows a deduction for a qualified conservation contribution, which is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. The contribution should include a restriction, granted in perpetuity on the use that can be made of the real property.
The IRS asserts that some promoters are syndicating conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested. In those transactions, a promoter offers prospective investors in a partnership or another pass-through entity the possibility of a charitable contribution deduction for donation of a conservation easement.
The IRS will challenge the purported tax benefits from such transactions based on the overvaluation of the conservation easement. The IRS has indicated that it may also challenge the purported tax benefits from the transaction based on the partnership anti-abuse rule, economic substance, or other rules or doctrines
0 Conservation Easement Cases And The IRS Conservation easement cases have become a primary focus of the IRS. IRS Commissioner Koskinen's letter to the Senate Finance Committee confirmed that the IRS believes that most syndicated easement donation transactions are patently abusive
The cases can result in enormous tax assessments, interest and draconian penalties imposed. In some cases, there can be criminal exposure. Likewise, the attorneys or others who were marketing and setting up these transactions may be targeted by the IRS for severe penalties and other actions.
In Notice 2017-10, the IRS has put taxpayers and practitioners on notice that it considers certain syndicated conservation easement transactions to be tax avoidance transaction, identifying the transactions as "listed transactions," meaning they could be considered abusive.
Section 170(e)(1) of the Tax Code allows a deduction for a qualified conservation contribution, which is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. The contribution should include a restriction, granted in perpetuity on the use that can be made of the real property.
The IRS asserts that some promoters are syndicating conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested. In those transactions, a promoter offers prospective investors in a partnership or another pass-through entity the possibility of a charitable contribution deduction for donation of a conservation easement.
The IRS will challenge the purported tax benefits from such transactions based on the overvaluation of the conservation easement. The IRS has indicated that it may also challenge the purported tax benefits from the transaction based on the partnership anti-abuse rule, economic substance, or other rules or doctrines
conservation easements and IRS audits
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Lance Wallach
Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witn... See more
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Conservation Easement Cases And The IRS
Conservation easement cases have become a primary focus of the IRS. IRS Commissioner Koskinen's letter to the Senate Finance Committee confirmed that the IRS believes that most syndicated easement donation transactions are patently abusive
The cases can result in enormous tax assessments, interest and draconian penalties imposed. In some cases, there can be criminal exposure. Likewise, the attorneys or others who were marketing and setting up these transactions may be targeted by the IRS for severe penalties and other actions.
In Notice 2017-10, the IRS has put taxpayers and practitioners on notice that it considers certain syndicated conservation easement transactions to be tax avoidance transaction, identifying the transactions as "listed transactions," meaning they could be considered abusive.
Section 170(e)(1) of the Tax Code allows a deduction for a qualified conservation contribution, which is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. The contribution should include a restriction, granted in perpetuity on the use that can be made of the real property.
The IRS asserts that some promoters are syndicating conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested. In those transactions, a promoter offers prospective investors in a partnership or another pass-through entity the possibility of a charitable contribution deduction for donation of a conservation easement.
The IRS will challenge the purported tax benefits from such transactions based on the overvaluation of the conservation easement. The IRS has indicated that it may also challenge the purported tax benefits from the transaction based on the partnership anti-abuse rule, economic substance, or other rules or doctrines
conservation easements and IRS audits
ReplyDeletePublished on January 4, 2019
Edit article
View stats
Lance Wallach
Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witn... See more
908 articles
Unlike 1
Comment
0
0
Conservation Easement Cases And The IRS
Conservation easement cases have become a primary focus of the IRS. IRS Commissioner Koskinen's letter to the Senate Finance Committee confirmed that the IRS believes that most syndicated easement donation transactions are patently abusive
The cases can result in enormous tax assessments, interest and draconian penalties imposed. In some cases, there can be criminal exposure. Likewise, the attorneys or others who were marketing and setting up these transactions may be targeted by the IRS for severe penalties and other actions.
In Notice 2017-10, the IRS has put taxpayers and practitioners on notice that it considers certain syndicated conservation easement transactions to be tax avoidance transaction, identifying the transactions as "listed transactions," meaning they could be considered abusive.
Section 170(e)(1) of the Tax Code allows a deduction for a qualified conservation contribution, which is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. The contribution should include a restriction, granted in perpetuity on the use that can be made of the real property.
The IRS asserts that some promoters are syndicating conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested. In those transactions, a promoter offers prospective investors in a partnership or another pass-through entity the possibility of a charitable contribution deduction for donation of a conservation easement.
The IRS will challenge the purported tax benefits from such transactions based on the overvaluation of the conservation easement. The IRS has indicated that it may also challenge the purported tax benefits from the transaction based on the partnership anti-abuse rule, economic substance, or other rules or doctrines