Former IRS Chief Counsel Attorney Cal Bomar
We help clients in syndicated conservation easement audits, Tax Court litigation, IRS relief and promoter responsibility to pay damages they caused their clients. Parties who may have been involved in conservation easement deals that flag audit include:
- Aprio, LLP f/k/a Habif, Arogeti & Wynne, LLP
- Ecovest Capital, Inc.
- Eco Terra Management, LLC
- Inland Capital
- TOT Property Holdings, LLC
- Coal Property Holdings, LLC
- Webb Creek Management Group. LLC
- Greencone Investments, LLC
- Sixty West, LLC
- Evergreen Management Group
- Evergreen Conservancy
- Awahili Alliance, LLC / (Jim Adams)
- Old Ivy Capital Partners / (Steve Bush & Dan Carbonaro)
- Effingham Managers, LLC
- Forever Forests, LLC (Nancy Zak)
- Strategic Financial Alliance
- Credo Financial Services, LLC
- Emerald Property Investors, LLC / (Kowan, Cordon & Graham)
- Piedmont Private Equity
- Strategic Group / (Ricky Novak & James Freeman)
- Sequence Financial Specialists, LLC
- Large & Gilbert, Inc.
- Bennett Thrasher, LLC
- The Private Client Law Group
- Kyle Carney
- Carney Conservation Easement Consultants, LLC
- Southern Conservation Group, LLC
- Capital Conservation Consultants, LLC
- Joseph McDonough
- Ron Martin
- Thomas Free
Bomar Law Firm’s principal office is in Atlanta, GA, but the firm helps clients throughout the United States in tax cases. We place an extremely high priority on getting each client to the best result.
Conservation Easement Cases And The IRS
Conservation easement cases have become a primary focus of the IRS. IRS Commissioner Koskinen’s letter to the Senate Finance Committee confirmed that the IRS believes that most syndicated easement donation transactions are patently abusive
The cases can result in enormous tax assessments, interest and draconian penalties imposed. In some cases, there can be criminal exposure. Likewise, the attorneys or others who were marketing and setting up these transactions may be targeted by the IRS for severe penalties and other actions.
In Notice 2017-10, the IRS has put taxpayers and practitioners on notice that it considers certain syndicated conservation easement transactions to be tax avoidance transaction, identifying the transactions as “listed transactions,” meaning they could be considered abusive.
Section 170(e)(1) of the Tax Code allows a deduction for a qualified conservation contribution, which is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. The contribution should include a restriction, granted in perpetuity on the use that can be made of the real property.
The IRS asserts that some promoters are syndicating conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested. In those transactions, a promoter offers prospective investors in a partnership or another pass-through entity the possibility of a charitable contribution deduction for donation of a conservation easement.
The IRS will challenge the purported tax benefits from such transactions based on the overvaluation of the conservation easement. The IRS has indicated that it may also challenge the purported tax benefits from the transaction based on the partnership anti-abuse rule, economic substance, or other rules or doctrines.
Contact Us Today
The IRS will be initiating a large number of syndicated conservation easement cases over the next few years. For a detailed analysis by a former IRS Chief Counsel lawyer of your conservation easement audit, litigation, post-settlement relief and the promoter’s responsibility to pay your damages that they caused, contact Bomar Law Firm at (404) 841.6561. Cal Bomar represents taxpayers in conservation cases as well as other tax controversies. Our tax attorneys focus on guiding clients to the best possible result.