United States

Conservation easement disclosure extended for Hurricane relief

Form 8886 deadline for Hurricane Harvey, Irma, Maria victims extended

TAX ALERT  | 

The IRS recently released Notice 2017-58, extending the deadline for filing Forms 8886 “Reportable Transaction Disclosure Statement” for taxpayers required to disclose conservation easement transactions who were affected by Hurricane’s Harvey, Irma and Maria. The new date for affected participants of conservation easement transactions to file Forms 8886 with the IRS Office of Tax Shelter Analysis is Oct. 31, 2017.

On Dec. 23, 2016, the IRS released Notice 2017-10 designating syndicated conservation easement transactions, and substantially similar transactions, as listed transactions for purposes of Reg. §1.6011-4(b)(2). On April 27, 2017, the IRS released Notice 2017-29, modifying the first notice by extending the due date of the Forms 8886 to Oct. 2, 2017.

Notice 2017-58 extends the due date for affected participants who have disclosure obligations under Reg. §1.6011-4(e)(2)(i). An affected participant is a participant of a conservation easement transaction (as defined in Notice 2017-10) whose principal residence or principal place of business is located in a Hurricane Harvey, Hurricane Irma or Hurricane Maria covered disaster area, as defined in Reg. § 301.7508A-1(d)(2). Further, the extended due date of Oct. 31, 2017 applies to taxpayers whose tax returns reflected participation in the conservated easement transaction before it became a listed transaction on Dec. 23, 2016.

Taxpayers should contact their tax advisers to determine if the extended due date applies to them. Taxpayers entitled to the extended due date should mark “Hurricane Harvey”, “Hurricane Irma”, or “Hurricane Maria” on the top of Forms 8886.

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