Conservation Easement Tax Litigation
- Attorneys in Freeman’s tax controversy and litigation practice have been named to U.S. News and World Report’s Best Lawyers in America list, recognized by Chambers & Partners as among the leading tax and litigation attorneys in the United States, including for fraud representations, and recognized as the “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas.
- Our tax litigation attorneys include former IRS trial attorneys, former clerks to the Chief Judge of the United States Tax Court, tax law professors, dual-credentialed CPAs, and attorneys with advanced LL.M. tax degrees from the most prestigious tax programs in the nation. One-third of our attorneys serve as law professors at tier one law schools, teaching tax law.
- We regularly take on the nation’s biggest litigation firm: The Department of Justice. We bring a systematic approach to tax litigation; and we are rewriting the odds in complex tax disputes, one case at a time.
Conservation Easement Tax Litigation
Freeman’s tax controversy practice regularly represents clients in conservation easement tax disputes. We defend our clients against government audits, investigations, and allegations, bringing big-firm talent, think-tank intellect, and strategic insight to their corners. We are hyper focused; responsive; and battle-tested.
Our tax controversy attorneys combine unique litigation skills and experience with substantive tax knowledge. We are client-focused problem solvers, steeped in substantive tax expertise gained from years of experience in the trenches, providing sophisticated representation.
Best Lawyers® and U.S. News & World Report have recognized Freeman as a “Tier 1” Tax Law firm and our tax attorneys have garnered national recognition for their tax defense work, such as:
- The “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas
- U.S. News – Best Lawyers® Best Lawyers in America
- The Best Lawyers in America®, Chambers USA
In tax litigation, the right move at the right time can mean the difference between the right outcome and the wrong one. We begin thinking through the end game from day one. We sift through and evaluate the case, cultivating its thematic essence and distilling complex facts into clear and compelling narratives and defenses.
Conservation Easements
More than 40 years ago, Congress enacted a statutory income tax deduction for owners of significant property who donate certain rights of ownership to preserve their land or buildings for future generations. The provisions allow for a charitable deduction for donating qualified conservation easements—legal agreements that permanently limit the development or use of a property—to a charitable organization. A deductible conservation easement is an easement granted for preservation of land areas for outdoor recreation, protection of habitat, preservation of open space, or preservation of historically important land area or buildings.
Under the conservation easement rules, a donor’s interest in the property must be subject to legally enforceable restrictions (e.g., deed recordation) that will prevent uses of the property that are inconsistent with the conservation purposes of the donation.
In recent years, the IRS has prioritized tax enforcement efforts against syndicated conservation easements that it believes to be abusive. The IRS has challenged what it believes to be inflated appraisals to the value of the easement to increase charitable deductions or donations for easements that do not fulfill bona fide conservation purposes. The following are among the more common issues involved in IRS audits and investigations into conservation easements:
- Failure to meet charitable contributions rules.
- Noncompliance with substantiation requirements.
- Inadequate documentation of or lack of conservation purpose.
- Lack of perpetuity evidenced by deed terms.
- Reserved property rights inconsistent with a conservation purpose.
- Failure to comply with subordination rules.
- Failure to provide the donee organization with the specified proportionate share of the proceeds in the event of extinguishment.
- Use of noncompliant appraisal methodologies.
- Failure to report income from the sale of state tax credits.
- Overvalued conservation easements.
The IRS has also placed an emphasis on investigations into promoters and appraisers involved in conservation easements.
Conservation Easement Defense
Our firm and attorneys maintain a reputation for integrity and vigorous representations defending clients in tax controversies and criminal tax matters. We have experience defending against a range of government agencies, with a particular focus on the IRS. And we provide an in-depth knowledge of the conservation easement rules and issues, as well as the developing case law.
Well-versed in high-stakes tax litigation, our attorneys are trial-ready and battle tested; we’re ready when you are.
Representative Matters
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Conservation Easement
Represented client in conservation easement audit and litigation, as well as settlement program.
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Conservation Easement
Represented appraiser in conservation easement audit.
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Conservation Easement
Represented appraisers in conservation easement criminal investigation.
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Conservation Easement
Represented appraisers in conservation easement grand jury proceedings.
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Criminal Tax
Represented attorney in federal indictment for tax evasion.
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Criminal Tax
Represent client in alleged $12 million tax evasion.
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Criminal Tax Investigation; Non-Prosecution
Represented client in criminal tax investigation by IRS Criminal Investigation Division involving allegations of income tax evasion; “killed investigation,” obtaining agreement from IRS CID not to seek prosecution against client.
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Criminal Tax Investigation; Non-Prosecution
Represented client in criminal tax referral involving allegations of income tax evasion; “killed case,” obtaining declination to prosecute client from United States Attorneys Office.
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Criminal Tax Investigation; Non-Prosecution
Represented client in criminal tax investigation by IRS Criminal Investigation Division involving allegations of income tax evasion; “killed investigation,” obtaining agreement from IRS CID not to seek prosecution against client.
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Criminal Investigation; Seizure; Non-Prosecution
Represented client under federal investigation for laundering and facilitating cryptocurrency exchanges following government seizure of cash. “Killed case,” and obtained government declination to pursue criminal charges, as well as obtained return of all seized funds.
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IRS “SEP” Audit/Investigations
Represented client in Special Enforcement Program (“SEP”) audit/investigation involving millions of dollars of alleged unreported income and several million dollars of unpaid tax and assessments; obtained deal to avoid criminal referral and avoidance of fraud penalties.
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Criminal Tax Defense
Represented client against criminal tax evasion charges involving allegations of the evasion of tax in excess of $1.5 million. Obtained result of no prison time.
