IRS Land Deal Offer Has Little to Entice Challengers to Settle

The IRS may find few takers for its offer to settle litigation over potentially abusive land deals, even though the agency warned investors they won’t be offered better terms.

The federal government in June announced a settlement offer to resolve pending legal cases involving syndicated conservation easements, a type of land deal that leverages a conservation tax deduction under tax code Section 170(h). The transactions are organized by sponsors who solicit multiple investors to buy interests in a property in order to qualify for the deduction, and the IRS has identified the deals as ripe for abuse.

While ...