IRS cuts conservation easement valuations by 97% using unqualified desk reviews
IRS desk reviews have slashed the assessed value of conservation easements by roughly 97%, often without ever visiting the land.
An independent analysis of more than 130 IRS valuations of conservation easements reveals that the agency routinely lowers expert-determined property values by about 97% using desk reviews conducted by contractors without proper qualifications. The IRS often forgoes site visits, disregarding the “highest and best use” standard that Congress established to incentivize land preservation. In several instances, properties valued at tens of millions of dollars by landowners’ specialists were reduced to a few hundred thousand, prompting concerns that the policy now favors development over conservation.
The report cites examples of appraisers with unrelated backgrounds, such as a hog hunter and a limousine-company owner, and references outdated publications. The practice appears linked to a contract awarded through the SBA’s 8(a) program, which recently shifted to a race-neutral definition of disadvantage. Critics argue the approach undermines the original intent of conservation easements and could lead to increased land development.
