Conservation Easement Valuation Disputes
You’re not alone if you’ve considered syndicated conservation easements as a tax-saving strategy. Many Georgia property owners have turned to these easements, attracted by the significant charitable deductions they provide when preserving land. Lately, the IRS has become especially vigilant, scrutinizing valuations and Georgia conservation easement tax deductions more closely than ever. Why? Because they suspect inflated property values and misuse of these easements as tax shelters.
In June 2025, petitioners filed four major lawsuits involving Georgia and North Carolina properties at the US Tax Court. The petitions contest over $215 million in conservation easement tax deductions. These new lawsuits aren’t just a minor uptick. They’re a warning sign for property owners involved in these easements. A clear understanding of the stakes could mean the difference between safeguarding your finances and being subject to hefty IRS conservation easement penalties.
In this article, we’ll discuss the latest conservation easement lawsuits, highlight what they mean for you, and outline how Wiggam Law’s tax attorneys can guide you through the complexities of conservation easement settlements.
Key Points from Recent Tax Court Lawsuits
These conservation easement lawsuits in the U.S. Tax Court highlight how the IRS is getting tougher on property valuations and deductions. They are notable because of the substantial amounts and specific claims and defenses presented.
Lamar Solar Property LLC v. Commissioner
The IRS rejected a $79.7 million charitable deduction of 452 acres intended for solar development that Lamar Solar Property LLC is now disputing. The IRS imposed severe penalties, totaling around $41 million, arguing that Lamar Solar failed to establish the validity of its deduction and questioned the transaction structure itself.
Potts Pond LLC v. Commissioner
Similarly, Potts Pond LLC faces a substantial challenge from the IRS after claiming a deduction of $66.9 million for 225 acres in Lamar County, Georgia, intended for aggregate mining. The IRS assessed a significant underpayment penalty of approximately $24.7 million. They asserted Potts Pond did not adequately demonstrate the easement’s valuation and disputed the legitimacy of the transaction structure.
Pitts Chapel LLC v. Commissioner
In Pitts Chapel LLC’s case, involving roughly 119 acres in Jones County, Georgia, the dispute centers on a $50.1 million deduction claim. Pitts Chapel identified mining as the highest and best use of their property before easement donation, but the IRS assessed penalties totaling approximately $25.9 million. The IRS also offered alternate valuations, drastically lower than Pitts Chapel’s original claim.
Silver Foxx Investments LLC v. Commissioner
Silver Foxx Investments LLC is petitioning an IRS decision over a $20.5 million deduction tied to a historic preservation easement in Buncombe County, North Carolina. The IRS cited insufficient documentation and questioned the validity of the transaction structure. As a result, they rejected Silver Foxx’s claim outright. Silver Foxx insists they have everything well documented, even pointing to the deed recorded with local authorities.
These cases show just how serious and aggressive the IRS is becoming. If you’re involved with syndicated conservation easements, these developments aren’t something you can ignore. Outcomes here could shape IRS approaches and audits for years to come.
Why These Cases Matter to Georgia Property Owners
These Tax Court cases are more than just headlines. They’re a real wake-up call for anyone involved in conservation easements here in Georgia. The IRS is intensifying its focus, not just on these four cases, but across the spectrum of conservation easement transactions. What does this mean for you?
The IRS is taking a hard look at property valuations and aggressively challenging appraisals, often targeting deductions worth millions. Without meticulous, detailed documentation, you could be in the IRS’s crosshairs.
The IRS is also paying closer attention to how these deals are structured. Arrangements involving complicated partnerships or syndicates are red flags signaling improper setups or potential tax avoidance, making these transactions prime targets for audits.
Losing your deductions isn’t the only risk. You could also be hit hard by IRS penalties and charges for underpayment. These costs could quickly erase any initial tax savings and leave you facing serious financial hardship.
Investors should also consider litigation costs and the stress of prolonged IRS disputes. Fighting the IRS is neither easy nor cheap: a drawn-out battle can be draining financially and emotionally.
Be extra vigilant if you’re considering or are involved in syndicated conservation easements. Ensure your transaction is fully compliant, thoroughly documented, and correctly valued.
How Wiggam Law Can Help
When facing IRS scrutiny on syndicated conservation easements, you need an experienced team that understands the complexities. Wiggam Law has ample experience in precisely these challenging cases. Our attorneys have helped hundreds of clients navigate conservation easement audits and tax court litigations, consistently achieving positive outcomes.
We carefully review your case to:
- Examine appraisal valuations, private placement memoranda, related documentation, and the underlying transaction structures
- Identify and address potential red flags before they become major issues
- Identify your total exposure to the IRS and state taxing agencies
- Identify and implement mitigation strategies to reduce your total potential liability to the IRS and state.
You may have also received a letter from the IRS saying you qualify for an SCE settlement. Our SCE attorneys can answer your questions, help you negotiate with the IRS, and represent you in Tax Court if needed.
We understand how intimidating IRS conservation easement audits or settlements can be, especially with your finances and reputation on the line. Our approach emphasizes protecting your financial interests while minimizing risks.
Furthermore, we handle all interactions with the IRS, saving you the stress and complexities of navigating these settlements on your own. By working with Wiggam Law, you gain peace of mind knowing seasoned experts support you and are committed to defending your interests.
At Wiggam Law, we don’t just fight to protect your deductions. We fight to protect your financial stability, your peace of mind, and your future.
Take Control of Your Situation
Don’t let IRS conservation easement audits derail your financial future. Take action now.
Schedule a free consultation with our tax resolution team by using our online scheduler or calling our office at (404) 233-9800 now.
