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another related development, the notices detailing them. In response, tax- syndicated conservation easements
SECURE 2.0 Act, enacted in December, payers and tax practitioners have gener- under Notice 2017-10, tax practitioners
imposes new limitations that make it ally based their decision to disclose can recommend that clients obtain a
more difficult for passthrough entities to listed transactions and transactions of quality valuation and make sure a rea-
take charitable deductions for conserva- interest on (1) the validity of the IRS’s sonable person would conclude that the
tion easement contributions. See Section notices and (2) the potential applicabil- real property in question warrants con-
605 of the SECURE 2.0 Act of 2022 ity of penalties for nondisclosure. servation. When it comes to reportable
(Division T of the Consolidated Appro- While the courts’ holdings are sig- transactions, less is not more. ■
priations Act, 2023, P.L. 117-328). nificant wins for all taxpayers, tax prac-
titioners should advise their clients to
A note of caution for continue to proceed with caution when
the future deciding whether to disclose listed Contributors
The IRS’s issuance of a notice, regula- transactions or transactions of interest. Mark Heroux, J.D., is a partner in the
tion, or other form of guidance imposes Noncompliance with the reportable- Tax Advocacy and Controversy Services
significant reporting obligations on transaction rules comes with substantial practice at Baker Tilly US LLP in Chi-
taxpayers when it involves a reportable risk, since the remedies in Mann Con- cago and a member of the AICPA IRS
transaction. If taxpayers fail to report struction, CIC Services, and Green Valley Advocacy & Relations Committee. Mai
such transactions, the IRS can assess are limited in their application. Chao Thao, J.D., is a senior associate
significant penalties. Over the years, the While tax practitioners should with Baker Tilly US LLP in Madison, Wis.
IRS has identified 36 transactions as continue to exercise care when advis- For more information on this column,
listed transactions and six transactions ing their clients, there are also ways to contact thetaxadviser@aicpa.org.
as transactions of interest and issued mitigate risks. For example, for certain

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44 April 2023 The Tax Adviser