On August 19, 2026, the IRS announced in IR-2026-95 that it had established an Office of Conservation Easements to centralize expertise and coordinate policy, enforcement, and case-resolution strategy.
The IRS also changed how it will administer the settlement process for pending conservation easement disputes.
What the New Office Will Do
The IRS says conservation and historic preservation easements can involve specialized tax, valuation, contractual, and procedural questions. The new office is intended to coordinate technical work across the IRS and with the Office of Chief Counsel.
It will also support engagement with taxpayers, practitioners, conservation and historic preservation organizations, and other stakeholders. In addition, the office will work with Treasury to evaluate administrative and legislative options involving conservation objectives, consistent tax administration, and valuation integrity.
The Uniform Settlement Process Is Ending
Effective August 19, the IRS concluded the uniform settlement initiative announced on May 13, 2026. It will not automatically issue additional standardized settlement letters under that program, and deadlines for accepting previously issued offers have been withdrawn.
The announcement makes several important distinctions:
- Prior elections to participate remain in effect and will be processed under their terms
- Taxpayers with pending cases may request settlement through their assigned IRS examination or Chief Counsel representative
- If a case remains eligible, the IRS may issue a new offer using the same standardized terms
- Individual cases may still be resolved on different terms when litigation risk warrants it
The IRS emphasized that the transition does not create a new or more favorable standardized offer. It ends the rolling issuance of uniform offers and fixed response deadlines.
What Affected Taxpayers Should Do
Taxpayers with a pending conservation easement case should continue working directly with their assigned IRS or Chief Counsel representative. Because partnership agreements, insurance arrangements, valuation evidence, and procedural posture can differ materially, settlement decisions require case-specific review.
Once the new office is operational, the IRS expects it to provide central coordination and a channel for general inquiries. Contact information will be announced separately.
Why It Matters for Small Business Owners
The IRS announcement focuses on conservation easement cases, so a Schedule C filer should determine whether a related transaction or dispute applies to their circumstances. A business owner involved in a conservation easement transaction or related tax dispute should preserve appraisal, contribution, ownership, and correspondence records and seek advice from professionals experienced in easement valuation and tax controversy.
Simple-C helps Schedule C filers organize day-to-day business income and expenses — while specialized advisers handle conservation easement and dispute-resolution issues.
This article provides general information, not tax, legal, valuation, or settlement advice. Conservation easement cases are fact-specific. Confirm current details with the IRS and qualified advisers.