IRS Conservation Easement Defense Lawyer
The Internal Revenue Service (IRS) has heavily scrutinized conservation easement deductions—including deductions for syndicated conservation easements—in recent years. If you are facing an audit, investigation, or tax litigation related to a charitable contribution deduction for a conservation easement, our attorneys can help you fight to avoid unnecessary consequences.
Tax Fraud and Evasion Team Lead
Tax Fraud and Evasion Team Lead
Former DOJ Attorney
Tax Fraud and Evasion & CPA Team Lead
Tax Fraud and Evasion Team
Former Special Agent (IRS)
Syndicated conservation easement transactions have been a longstanding enforcement priority for the Internal Revenue Service (IRS). Recently, however, the IRS has broadened its enforcement efforts to focus on conservation easement deductions more broadly. If you are facing scrutiny from the IRS related to a tax deduction for a conservation easement, you could be facing civil or criminal penalties, and we strongly recommend that you speak with one of our experienced tax attorneys right away.
Conservation easement donations can afford significant tax benefits to wealthy taxpayers. Those who make a qualified conservation contribution can often substantially reduce their federal tax liability. However, due to widespread fraud, the IRS now views easements granted for conservation purposes as potential abusive tax shelters. This has led to a large number of high-stakes audits and investigations in recent years, with the IRS targeting overvalued conservation easements in particular.
The IRS Added Conservation Easement Fraud to Its “Dirty Dozen” List in 2019
The IRS added conservation easement fraud to its “Dirty Dozen” list in 2019 (this was after designating syndicated conservation easements as “listed transactions” in 2016). This list identifies the bureau’s top enforcement priorities under federal tax law. While conservation easement fraud was supplanted on the IRS’s “Dirty Dozen” list in 2025, other recent events make clear that targeting conservation easements that fail to meet charitable contribution rules in any respect remains a top IRS enforcement priority.
The IRS Established a Conservation Easement Settlement Program in 2026
Highlighting the IRS’s view of conservation easements as potential fraudulent tax shelters is the fact that the bureau established a new conservation easement settlement program in 2026. On May 13, 2026, the IRS announced, “a time-limited settlement opportunity for eligible taxpayers involved in conservation easement or historic preservation easement disputes with the IRS.”
Participating in the program will allow eligible taxpayers to resolve their controversies with the IRS without facing civil or criminal enforcement under the Internal Revenue Code (IRC). However, not all conservation easements constitute abusive transactions; and, even if the IRS believes a deduction is improper, this does not necessarily mean that a settlement is warranted.
With this in mind, before considering a settlement offer, taxpayers that are facing (or may be at risk of facing) enforcement action should consult with experienced tax counsel to ensure that they are making informed decisions about how best to proceed. Our attorneys can provide the insights you need; and, once you decide how to move forward, we can interface with the federal government on your behalf.
The Risks of Facing Allegations of Conservation Easement Tax Fraud from the IRS Are Substantial
In all cases, the risks of facing allegations of conservation easement tax fraud from the IRS are substantial. This includes (but is not limited to) allegations such as:
- Misrepresenting the fair market value (i.e., appraised value) of the underlying land or other underlying property
- Misrepresenting the conservation value of the protections put in place
- Otherwise misrepresenting the economic substance of the transaction
- Maintaining reserved property rights inconsistent with the purpose of the conservation easement granted (i.e., outdoor recreation, preserving open space, or preserving historically important land area or a certified historic structure for future generations)
- Lack of perpetuity evidenced by the underlying property’s deed
- Failure to pay the donee organization a proportionate share of the proceeds upon extinguishment
- Failure to meet the substantiation requirements for conservation easements under the IRC (i.e., inadequate documentation of the conservation purpose)
- Failure to grant the conservation easement to a qualified organization
- Failure to comply with subordination rules
Along with liability for back taxes, interest, and civil penalties, property owners accused of conservation easement fraud can also face criminal penalties in some cases. As a result, if you have received an IRS notice, a subpoena, or any other form of inquiry related to a claimed deduction, you should promptly consult with experienced legal counsel to determine what defenses you have available.
How Our Law Firm Can Help if You Are Facing an IRS Audit or Criminal Investigation
If you are facing an IRS audit or criminal investigation related to a conservation easement deduction, our law firm can assist you with targeting a favorable resolution that avoids unnecessary liability. There are several potential defenses to allegations of conservation easement fraud, including (but not limited to):
- You were sold a fraudulent conservation easement product by a promoter of syndicated conservation easement transactions (SCE transactions)
- You did not knowingly rely on inflated appraisals or other misrepresentations
- You relied on opinion letters or the advice of return preparers who misled you
- You relied on statements published by the IRS commissioner
- Your conservation easement deduction is compliant with Section 170 the IRC
Crucially, while some of these can serve as complete defenses to liability, others will only mitigate your liability exposure. Even if you are not criminally culpable for intentional tax evasion, you could still be at risk of facing substantial civil liability. Once we learn the details of your case, we will be able to advise you in light of the specific circumstances at hand and help you target a resolution that minimizes your liability to the fullest extent possible—if not eliminating your liability exposure entirely.
We Also Represent Taxpayers in Tax Litigation with the IRS
If you are facing litigation in the US Tax Court related to a conservation easement deduction, we can help you in this scenario as well. We have extensive experience representing clients accused of using fraudulent investment schemes to unlawfully reduce their federal tax liability, and we can use our experience to protect your interests in court by all means available.
FAQs: IRS Audits and Investigations Involving Charitable Contribution Deductions for Conservation Easements
Is the IRS still prioritizing conservation easement fraud enforcement?
Yes, conservation easement fraud enforcement remains a top priority for the IRS. The IRS has estimated government losses of $21 billion since 2010; and, as a result, it is continuing to aggressively target taxpayers suspected of perpetrating conservation easement schemes.
Recently, the IRS has established two new offices to investigate suspect conservation easement transactions, and it has also launched a “limited time” settlement program aimed at resolving outstanding disputed claims. To date, the IRS has audited more than 28,000 taxpayers in relation to their claimed conservation easement deductions—in addition to conducting numerous criminal tax evasion investigations.
What constitutes a “qualified real property interest” for purposes of claiming the federal conservation easement deduction?
The term “qualified real property interest” is defined in Section 170(h)(2) of the Internal Revenue Code. The definition includes: (i) “the entire interest of the donor other than a qualified mineral interest;” (ii) “a remainder interest;” and, (iii) “a restriction (granted in perpetuity) on the use which may be made of the real property.” If you claimed a conservation easement deduction and you are unsure whether the easement involves a “qualified real property interest,” our attorneys can determine whether you are at risk of facing additional federal liability.
What are the legal requirements for a valid federal conservation easement deduction?
Federal conservation easement deductions must strictly comply with Section 170 of the Internal Revenue Code (IRS). Conservation easements must also be recorded to be legally enforceable, and taxpayers must include Form 8886 in their federal filings when claiming deductions in relation to syndicated conservation easement transactions. While this list is not exhaustive, these are among the most common issues raised during IRS audits and investigations.
How common is it for the US Tax Court to disallow claimed conservation easement deductions?
According to the IRS, the US Tax Court has disallowed approximately 90% of all claims conservation easement deductions it has considered. In these cases, the IRS frequently asks the court to scrutinize taxpayers’ appraisal methodologies for conservation easement transactions—in addition to challenging taxpayers’ claimed deductions on other grounds.
Yes, if the IRS is challenging a charitable contribution deduction on your federal return related to a conservation easement, you should engage experienced legal counsel promptly. The IRS is prioritizing enforcement in this area, and allegations of noncompliance can lead to substantial penalties. At Oberheiden PC, we have extensive experience representing clients in high-stakes federal tax matters. Our attorneys can review your relevant federal filings and substantiating documentation, assess your risk, help you strategize, and then communicate with the IRS on your behalf.
Schedule a Free and Confidential Consultation with a Conservation Easement Attorney Today
If you need to speak with an experienced IRS conservation easement defense lawyer, we encourage you to contact us promptly for a free consultation. To speak with one of our senior lawyers in confidence as soon as possible, call us at 888-680-1745 or tell us how we can reach you online now.
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