IRS ATTACKS CAPTIVE INSURANCE AND CONSERVATION EASEMENTS

The Internal Revenue Service (“IRS”) is providing settlement opportunities for taxpayers who have participated in syndicated conservation easement or micro-captive insurance transactions. They have viewed these transactions as abusive and have made it a priority to identify and audit taxpayers that have claimed tax benefits for participation in these transaction. The IRS has been very successful in Tax Court of late, and as a result, the Service is providing taxpayers a path to resolution that can reduce penalties and costs of litigation. IRS CHALLENGES CONSERVATION EASEMENTS The Internal Revenue Service has yet again publicly reiterated its commitment to challenge syndicated conservation easement transactions—transactions that it has, in recent years, labeled as “listed” transactions, tax-speak for “buyer beware.” In a recent press release, the IRS warned yet again that it believes that these easement deductions are “abusive transactions” and hinted that taxpayers can expect to face “new arguments” from its arsenal of legal theories. To add insult to injury, the IRS further cautioned that its newly-established “Office of Fraud Enforcement and the National Fraud Counsel are coordinating . . . to canvas cases for additional fraud considerations,” including civil fraud penalties and referrals to criminal investigation. The stakes, in other words, remain high for participants in syndicated conservation easement transactions. Lance Wallach receives hundreds of calls annually to help people fight the IRS and get their money back from the promoters of these scams. Google Lance Wallach and your advisor, who do you trust? 516-236-8440 Wallachinc@gmail.com