The IRS, Justice Department, and Congress have recently taken aim at what they allege to be the much-abused conservation easement deductions. While the crackdown’s impact has yet to be fully quantified, President Biden’s IRS continues to warn taxpayers that syndicated conservation easement transactions are “abusive” and could lead to fraud investigations, including civil penalties and criminal prosecution. The Senate Finance Committee also stated that “the federal government needs to curtail the aggressiveness that goes on with these syndicated [conservation easement] transactions.” As a result, companies, including investors, promoters, and appraisers, must not only ensure their tax deductions are supported and valid, but suffice the demands and scrutiny of regulators.
How Can Resolution Economics Help?
As part of our commitment to providing value to our clients, Resolution Economics considers potential risks that could negatively impact your financial well-being and brand reputation. Therefore, we are proud to offer tailored, risk-based conservation easement services including:
- Collecting, organizing, and electronically maintaining easement-related documentation
- Performing financial analysis of easement-related accounting records
- Analyzing property appraisals to determine propriety of market value
- Assessing purpose of easement and potential involvement of “middleman” or “promoters”
- Analyzing the timeline associated with the property purchase, easement application, and tax write-offs
- Performing open-source media searches to identify connection to “syndicated deals”
- Performing an analysis of tax incentive deductions, respective adjusted gross income, and associated taxpayers’ class (e.g., profession)
- Analyzing third party advisor expenses (e.g., accounting, advisory, and tax professionals) and associated supporting documentation
- Expert testimony
Our experienced team of credentialed experts is comprised forensic accountants, financial analysts, economists, data scientists, former auditors, and valuation professionals. Our diverse team has the expertise and skills needed to assist clients and their outside advisors to analyze, navigate, and respond to allegations of conservation easement improprieties and regulatory inquiries.
For More Information
If you would like to learn more about these services and how Resolution Economics can assist you, please visit our website or contact:
| Tricia Etzold, Partner Office: +1 (212) 281-1992 Email: tetzold@resecon.com | Kelly Melle, Partner Office: +1 (310) 246-3558 Email: kmelle@resecon.com |
| Andrew Coles, Director Office: +1 (917) 576-8176 Email: acoles@resecon.com | Paul Trinh, Senior Manager Office: +1 (310) 275-9137 Email: ptrinh@resecon.com |