IRS takes aim at conservation easement tax loophole

Tax breaks for conserving privately owned land could face much stricter scrutiny under new regulations proposed by the IRS.

The Treasury Department and the IRS announced the new rules Tuesday, part of an effort to end the yearslong battle — both in courtrooms and on Capitol Hill — over whether some private landowners have turned conservation easement tax incentives into abusive tax shelters.

The proposals would require taxpayers involved in syndicated conservation easements to file special disclosures with the IRS when using the tax incentive.