IRS CRACKS DOWN ON CONSERVATION EASEMENTS AND CAPTIVE INSURANCE

IRS CRACKS DOWN ON CONSERVATION EASEMENTS AND CAPTIVE INSURANCE IRS audit examinations, now accelerated and continued to usually disallow easement deductions in full. In the majority of preservation easement audits, the IRS has used a professional appraiser who is an IRS employee rather than relying on an independent outside contractor. The “Dirty Dozen” listing, the revised IRS donation forms for non-cash contributions and Form 990 changes (which newly flag easement donations), the increased examinations of donee organizations and some officers, the high level of audit coverage without settlements, and Appeals Officers sustaining the audit results, have added to the perception that the IRS is overreaching on this issue. CAPTIVE AUDITS Significant abuse of small captive insurance companies (CICs) as tax shelters has earned CICs a place on the IRS’s 2015 “Dirty Dozen” list of tax scams. Tax advisors, companies with CICs, and companies looking to establish CICs should be aware of the increased tax audit risk related to CICs. Lance Wallach receives hundreds of calls annually to help people fight the IRS and get their money back from the promoters of these scams. As an expert witness, Lance's side has never lost a lawsuit. Google Lance Wallach and your advisor, who do you trust? 516-236-8440 Wallachinc@gmail.com