IRS Reaches First Settlement in Conservation Easement Crackdown

Aug. 31, 2020, 3:47 PM UTC

The IRS reached its first settlement under an initiative to resolve legal battles over tax-advantaged land deals, closing a case involving a $155 million disallowed tax deduction.

Coal Property Holdings LLC and its partners agreed they wouldn’t get the deduction for their donation of a conservation easement, where they gave away development rights over a tract of land in order to conserve it, the IRS announced Monday.

Such donations are tax-deductible if they meet the requirements of tax code Section 170(h). In 2019, the LLC lost a dispute with the IRS at the U.S. Tax Court ...

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