IRS Issues News Release Expanding Abusive Conservation Easement Guidance, Announces Settlement Opportunity

The IRS has issued a new release announcing that updates to the Conservation Easement site have been made to expand information on abusive conservation easement transactions, recent court decisions, and warning signs for investors. The agency emphasized that while properly structured conservation easements provide public benefits, promoter-driven transactions often involve inflated valuations leading to disallowed deductions and substantial penalties. Additionally, the IRS will soon release terms for a time-limited settlement opportunity for eligible taxpayers and partnerships involved in these transactions to resolve federal tax consequences with certainty. [IR-2026-63, 05/06/26]

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