IRS Hit With Five More Conservation Easement Suits in Tax Court

At least five more conservation easement lawsuits arrived at US Tax Court this week, adding to the mounting caseload facing the government.

The five cases involve more than $132 million in charitable contribution tax deductions the IRS disallowed for partnerships that donated conservation easements on a piece of land. They join a backlog that has grown to more than 1,000 cases before the court as of October.

In a conservation easement, a land owner donates an easement that blocks development on the property in exchange for a tax deduction under IRC Section 170. The IRS has closely scrutinized the ...