A New Jersey tax pro pleaded guilty to conspiracy to defraud the government after marketing a scheme to sell $1.3 billion in fraudulent tax deductions that allegedly preserved green spaces. He admitted to guaranteeing tax deductions worth at least four times clients’ investments, knowing this was “too good to be true.” (www.justice.gov/opa/pr/cpa-pleads-guilty-conspiring-promote-fraudulent-tax-shelter-scheme) The IRS has issued proposed regulations that identify certain syndicated conservation easement transactions as “listed transactions,” a.k.a., abusive tax transactions that must be reported to the IRS. (IRS Notice 2022-28) The IRS issued the proposed regulations in response to Tax Court and Court of Appeals for the Sixth Circuit rulings that the IRS lacks the authority to identify listed transactions by notices, such as Notice 2017-10. The regulations are intended to be finalized in 2023.
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