New clarity on the IRS tax shelter notice

The IRS has published a welcome supplemental Notice complementing an earlier Notice that made conservation easement tax shelters "listed transactions." The Land Trust Alliance has provided a blog post and links to the notices and provided background information.

In the new Notice 2017-29, which was published April 27, the IRS makes clear that land trusts are not material advisors. This confirms what the Land Trust Alliance has said since the publication of the earlier Notice 2017-10, and we are pleased to see this affirmation.

Notice 2017-29 also makes clear that individuals and entities that packaged and promoted conservation easement tax shelters must still meet a May 1 deadline to report their involvement with those transactions to the IRS. That deadline is unchanged.

This new clarity represents a victory for all people who support land conservation. That's the bottom line. But if you would like to better understand the background, please review IRS Notice 2017-10: What Land Trusts Need to Know and IRS Notice 2017-10: What Landowners Need to Know.

As always, we will continue to keep you abreast of significant developments regarding the IRS Notices and the transactions they target.