Fifth (and Final?) IRS Settlement Offer for Conservation Easement Disputes

Fifth (and Final?) IRS Settlement Offer for Conservation Easement Disputes

June 01, 2026

TAX NOTES FEDERAL

Battles over charitable tax deductions from conservation easement donations continue to mount.  According to the IRS, there are currently more than 1,100 easement disputes at different stages.  The IRS has tried various mechanisms to halt what it considers improper transactions, including the introduction of several settlement initiatives.  These efforts have had little success.  The IRS is taking one final swing in 2026, announcing the fifth, and perhaps final, settlement initiative.  This article describes the origin of easement donation deductions, examines five initiatives introduced by the IRS over time, compares the most recent ones, and offers thoughts about the perpetuation of easement-related disputes in the future.

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