IRS AUDITS SYNDICATED CONSERVATION EASEMENTS AND MICRO-CAPTIVES

Abusive syndicated conservation easement transactions have been of concern to the IRS for several years. Some promoters have downplayed the significance of the string of recent court decisions holding in the government’s favor, arguing that their cases are somehow different or that those decisions might be reversed on appeal, according to the IRS. “These promoters ignore common sense and argue that the real dispute is about value, neglecting to explain how the reporting of short-term appreciation, often exceeding many multiples of reality, could possibly withstand judicial scrutiny,” the IRS said. “Taxpayers should ignore this nonsense, take an objective look at their cases, and cut their losses,” said IRS chief counsel Mike Desmond in a statement. “Abusive transactions, like settlement offers, do not get better with time, and this is a good opportunity to get out.” CAPTIVE INSURANCE AUDITS If you are caught up in a microcaptive deal, you should immediately seek an independent second opinion from qualified tax counsel. In this context, "independent" means somebody that you find yourself (not the captive manager or whoever sold you into the deal recommends) who takes a hard and critical view of the transaction and then gives you candid advice. Because in the absence of that, you probably don't have a chance now of escaping without paying additional tax and penalties and by staying in the deal you very well might be making the situation much worse for yourself ever day that goes along. This is going to get worse before it gets better, and the odds are low of it ever getting better (barring some win against the IRS before the U.S. Circuit Court of Appeals). Lance Wallach receives hundreds of calls annually from people looking to recover their money from promoters of these scams. Google Lance Wallach and your advisor. Who do you trust? 516-236-8440 Wallachinc@gmail.com