Conservation Easement Attorneys
IRS Crackdowns on conservation easements can put you at risk of significant tax liabilities. Mitigate your exposure with Wiggam Law’s team of conservation easement lawyers near you.
Protect yourself from conservation easement liabilities.
Conservation easements were designed to provide tax incentives to investors and landowners for conserving land. However, the IRS has been intensely scrutinizing syndicated conservation easements (SCEs) with a robust enforcement campaign against potential abuses. SCE funds have struggled to defend their appraisal valuations in court. Outcomes thus far have largely favored the IRS, subjecting participants to significant penalties. Given the current landscape, investors involved in these easements must understand their options and seek independent legal counsel.
While conservation easements can be used for legitimate tax benefits, abuse can result in:
Civil and Criminal Investigations of SCE Promoters
IRS Audits for Investors
Accuracy Penalties and Interest on Owed Taxes
A conservation easement attorney can help you defend yourself from an audit, minimize penalties and interest, and get you back in good standing with the IRS or Georgia DOR.
What can you do to mitigate your exposure?
If you are an investor and your CE deductions are denied by the IRS, you could be on the hook to repay the amount of the deduction, along with a 40% accuracy penalty—on top of the money you spent on your initial investment. If you invested in a SCE, do the following as soon as possible
Seek Independent Counsel from Tax Attorneys
When you have tax troubles, always make seeking out an attorney your first move. An attorney who does not represent your conservation easement partnership can serve as your independent advocate by advising you about your options for relief, helping you pursue the best course of action, and representing you in front of the IRS or Georgia DOR.
Evaluate IRS Settlement Offers
The IRS has provided multiple avenues for settlement in order to resolve potential liabilities without prolonged litigation. Global Settlement Offers provide partners with deductions for the cost of investment and reduce penalties while disallowing the charitable deduction in full, in exchange for paying back taxes, penalties, and interests.
Docketed Settlement – In cases that have gone to court, partners can have penalties reduced to 10%. Partners are individually responsible for paying their respective shares of taxes, penalties, and interests.
Non-Docketed Settlement – For cases still in the audit stage, partners can have penalties reduced to 5%. Additionally, the IRS charges and collects the tax against the partnership at a tax rate of 21%. All partners must agree to the settlement and pre-pay.
Pursue Refundable Deposits
The IRS’s aggressive stance on SCEs can lead to substantial federal income tax liabilities. Section 6603 refundable deposits allow investors can halt the accrual of interest (currently 8% annual, compounded daily) on potential liabilities while preserving the right to a refund if the dispute is resolved in their favor.
Enter Georgia’s Voluntary Disclosure Program
The Georgia Department of Revenue (“GA DOR”) has its own voluntary disclosure program specifically for conservation easements to help you mitigate your liability and avoid severe SCE-related penalties and resolve your tax issues. You do not need to have settled with the IRS first before participating in the VDA program.
Dealing with SCE issues can be daunting, but you don’t have to do it alone.
If you suspect you will soon be under IRS investigation for conservation easement tax deductions or have received notice of an IRS investigation, Wiggam Law is firmly in your corner and ready to help you find relief.
Our tax law team treats every client like family and makes your best interest and well-being our highest priority.
Find a Conservation Easement Attorney Near You
If you suspect you will soon be under IRS investigation for conservation easement tax deductions or have received notice of an IRS investigation, our conservation easement lawyers are ready to help you find relief.
Contact us now to find out if your good standing with the IRS or Georgia Department of Revenue is at risk and discuss your options for resolution.
Conservation Easement FAQ
What options do I have to mitigate my tax exposure?
As a Georgia resident, one of your best options for mitigating your tax exposure is by participating in the Georgia DOR’s voluntary disclosure plan. To participate, talk to a conservation easement attorney about whether or not you are eligible. Your lawyer can help you gather the documents related to your conservation easement deductions, negotiate the best possible terms of your tax settlement, and set you up to begin making payments to resolve your tax issues.
Do the attorneys that represent the partnership represent me?
The attorneys that represent the SCE partnership you participated in do not represent you—they represent the partnership itself. This is why you need to seek independent counsel when seeking to mitigate your exposure. Independent counsel has no relation to or bias toward the partnership and is therefore qualified to serve as an advocate for you.
Can I do GA Program while my IRS Case is under audit?
Contrary to popular belief, the VDA’s does not require you to have settled with the IRS first. You can and should apply before seeking an IRS settlement, even if you are currently being audited. Participating in the GA DOR’s VDA stops interest from accruing in addition to securing significant tax penalty and interest savings.
Got questions about your conservation easement tax benefits?
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