Case: Syndicated Conservation Easement Notice 2017-10 Was Improperly Issued Without Notice and Comment, Will Be Set Aside (T.C.) (IRC §6011)

Notice 2017-10 is a legislative rule on syndicated conservation easements, improperly issued by the IRS without notice and comment as required under the Administrative Procedure Act (APA), and will be set aside, the U.S. Tax Court held, granting in part Taxpayer’s summary judgment motion prohibiting the imposition of I.R.C. §6662A penalties. In Notice 2017-10, the IRS identified certain syndicated conservation easement transactions as tax avoidance transactions and provided that such transactions (and substantially similar transactions) are listed transactions for purposes of Treas. Reg. §1.6011-4(b)(2) and §6111 and §6112. Taxpayer timely petitioned the ...