IRS Notice on Conservation Easement Reporting Affirmed Invalid

The IRS violated the Administrative Procedure Act by publishing a notice to taxpayers that increased reporting requirements for certain kinds of conservation easement deals without providing public opportunity to comment on the provision, the Eleventh Circuit affirmed Tuesday.

Congress didn’t expressly authorize the IRS to publish the agency’s Notice 2017-10 without public notice and comment, as the APA requires, the US Court of Appeals for the Eleventh Circuit said. Green Rock LLC, an Alabama company that advises syndicated conservation easement arrangements, therefore isn’t subject to its reporting requirements, it said.

The appellate ruling affirmed a 2023 Alabama federal court ruling. ...