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“11 Things to Know About the Proposed Easement Regs"

June 12, 2023

Erin Hines article, “11 Things to Know About the Proposed Easement Regs” in TaxNotes Federal

TaxNotes Federal

In an article published in Tax Notes Federal on June 12, 2023 Atlanta-based Senior Counsel Erin Hines provides an analysis of the recently proposed regulations that classify syndicated conversation easement transactions as listed transactions. Hines additionally provides insight on the significant implications that may arise on easements involving land trusts.

“Syndicated conversation easements have been an IRS enforcement priority since at least December 2016, when Notice 2017-10, 2017-4 IRB 544, was issued,” explains Hines. “Despite recently litigation involving the validity of the notice, the IRS’s enforcement campaign on syndicated conservation easements continues, and the agency has said it intends to continue defend Notice 2017-10.”

Hines further discusses rate increases, tax shelter indicia and what constitutes a prohibited tax shelter.

“A prohibited tax shelter includes any listed transaction unless the Treasury secretary exercises the authority to identify, by published guidance that certain tax-exempt entities will not be treated as party to a prohibited tax shelter transaction. The secretary exercised that authority in Notice 2017-10, but as noticed in the proposed regs, she is considering eliminating or limiting that carveout.

To read the full article, subscribers can visit TaxNotes here.