Syndicated Easement Reporting Notice Struck Down by Court (1)

An IRS reporting requirement for syndicated conservation easement transactions was struck down by a divided US Tax Court.

Judge Christian N. Weiler concluded Wednesday that IRS Notice 2017-10, which created the reporting rule, was subject to the Administrative Procedure Act’s requirement for federal agencies to give notice of proposed rules and respond to public comments. The notice applied to participants in syndicated conservation easement transactions, which involve passthrough entities that allocate charitable deductions to investors after giving away property development rights over land or a building.

The IRS has argued that these syndicated transactions often involve excessive deductions under ...