IRS Previews Deal to Shrink Conservation Easement Backlog, Abuse

The IRS said it will soon release details on a time-limited settlement offer for conservation easement cases as it tries to ax the backlog of litigation in the US Tax Court.

Aggressive tax planners have for years assembled investors to claim tax deductions for charitable donations of land. The IRS has argued that deductions are often highly inflated appraisals of what the donated rights are worth.

After the settlement is released, the IRS will extend offers to eligible partnerships so they can resolve the federal tax consequences of these types of transactions, the agency said.

“Congress created the conservation easement ...