Saturday, April 18, 2020
IRS Guidance for Syndicated Conservation Easement Exams (and Another Federal Appellate Court Victory)
Late last month the IRS publicly released an Interim Guidance Memorandum for Syndicated Conservation Easement Examinations. The memo focuses on how IRS Small-Business/Self-Employed Division and Large Business and International Division employees working on such examinations should handle situations where the statute of limitations has less than eight months left to run. Hat tip: EO Tax Journal.
And just last week, the IRS had another court victory in a qualified conservation contribution deduction case, this time in the U.S. Court of Appeals for the Sixth Circuit. In Hoffman Properties II, LP v. Commissioner, the court upheld the disallowance of a $15 million claimed deduction because the contributor retained certain rights that allowed it to make changes to the facade and airspace at issue unless the recipient of the donation objected within 45 days. The court found that this provision meant the "perpetuity" requirement for a deductible contribution was violated and so the deduction failed.