Global Daily Tax News, US IRS Changes Tack On Conservative Easement Settlements, (Aug 31, 2026)

The US Internal Revenue Service has announced the creation of an Office of Conservation Easements.

Announcing the Office, the IRS said: "Experience administering the initiative, together with engagement with taxpayers, has shown that standardized, unsolicited settlement letters on a rolling basis, each with a fixed response period, are not well suited to the full range of conservation easement cases. Partnership agreements, insurance arrangements, procedural posture, and other circumstances may differ materially and affect when and how taxpayers evaluate settlement."

Alongside the Office's creation, the IRS has terminated the uniform settlement initiative effective immediately. The agency has said it will not issue any additional uniform settlement letters under the May 13 program.

Any deadlines for accepting previously issued offers are withdrawn, it said, adding that prior elections to participate in the May 13 settlement framework will remain in effect and will be processed in accordance with their terms.

The IRS said: "Taxpayers with pending cases may continue to request settlement under the May 13 framework through their assigned IRS examination or Chief Counsel representative. If the case remains eligible, the IRS will issue a new offer on the same standardized terms. Individual cases may continue to be resolved on different terms where warranted by the hazards of litigation. This transition does not signal a new or more favorable standardized offer. Rather, it ends issuance of uniform offers and deadlines."

"Taxpayers should continue working directly with their assigned representatives on case-specific matters and settlement requests. Once operational, the Office of Conservation Easements will provide central coordination and a channel for general inquiries. Additional contact information will be announced separately."