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IRS Conservation Easement Rule Struck Down by Appeals Court

Dec. 29, 2021, 11:32 PM

An IRS-interpreted rule blocking a subset of tax deductions for donating property development rights was struck down by a federal appeals court for failing to comply with procedural requirements.

The Wednesday decision from a three-judge panel of the U.S. Court of Appeals for the Eleventh Circuit reversed a ruling from the U.S. Tax Court that had applied an earlier decision in Oakbrook Land Holdings, LLC v. Commissioner to uphold the regulation under the Administrative Procedure Act. The act requires federal agencies to give notice and respond to significant comments when issuing various regulations.

Under the IRS’s reading of the rule, ...