Significant Increase in IRS Audits
Certain land donation deals that get hefty tax deductions will be under tighter scrutiny from the Internal Revenue Service auditors. There’s been a significant increase in IRS audits for syndicate conservation easements.
The IRS announced potential criminal prosecutions for taxpayers and their advisers involved in land donation deals known as syndicated conservation easements. This amounts to multiple people can claim tax deductions for donations of land that is protected from future development.
The IRS is concerned about cases where the tax breaks exceed that value of the initial contribution.
“We will not stop in our pursuit of everyone involved in the creation, marketing, promotion and wrongful acquisition of artificial, highly inflated deductions based on these aggressive transactions,” says the IRS Commissioner Chuck Rettig.
Did engaged in any questionable syndicated conservation easement transaction? You should immediately consult an independent, competent tax adviser to consider your best available options.
Contact Lance Wallach and his team of experts.
516-236-8440