Conservation Easement Donors Seek $150 Million Recovery From IRS

Land-owning partnerships sued the IRS to recover nearly $153 million worth of tax deductions for charitably donating easements to conservation groups.

Each partnership individually petitioned the US Tax Court, accusing the IRS of improperly disallowing charitable contribution deductions for tax years 2019 and 2020. The partnerships include Cedar Point Farms LLC, Nevils Bluff Property LLC, Queens Road Property LLC, and Old Corral LLC.

The partnership’s petitions said the IRS didn’t identify deficiencies with their easements, rendering the agency’s actions arbitrary under the Administrative Procedure Act.

The businesses donated easements encumbering property they owned throughout the southeastern US, then claimed deductions ...