IRS Rules Cement Conservation Easement Deals as Tax Shelters (1)

The IRS finalized rules Monday labeling certain syndicated conservation easements as listed transactions and boosting reporting requirements for advisers and certain participants.

The final rules (TD 10007, RIN 1545-BQ39) come after the agency first proposed the regulations in 2022, and follow court decisions to invalidate a 2016 notice on the topic.

The rules formally name syndicated conservation easements and similar transactions as “listed transactions,” a designation the agency uses to identify transactions deemed to be tax avoidance strategies.

Material advisers and certain participants in these listed transactions are now required to file disclosures with the IRS and are ...