On Aug. 19, 2026, the Internal Revenue Service (IRS) announced in news release IR-2026-95 the creation of a new Office of Conservation Easements (the Office). The Office was established based on a recognition of the “important role” of conservation and historic preservation easements and the specialized issues they present. The Office will centralize the IRS’s conservation easement expertise and provide coordination across the IRS and within the Office of Chief Counsel in policy, enforcement, and case-resolution strategy. In addition, it will provide a point of contact for general inquiries, support engagement with taxpayers, practitioners, and conservation and historic preservation organizations. It will evaluate administrative and legislative options in coordination with Treasury to promote consistent tax administration, strengthen valuation integrity, and advance Congress’s conservation and historic preservation objectives.
The creation of the Office does not signal a new settlement program or more standardized terms for settlement. The establishment of the Office reflects a change in how the IRS will settle conservation easement matters. In conjunction with the establishment of the Office on Aug. 19, the IRS ended its uniform settlement initiative. The uniform settlement initiative had been announced on May 13, 2026, as a limited opportunity for eligible taxpayers involved in conservation or historic preservation easements to resolve their disputes with the IRS. In May, when the uniform settlement initiative was announced, over 1,100 conservation easement cases were docketed in the U.S. Tax Court or were pending in the IRS Examination Division. The uniform settlement initiative was intended to address issues that prevented some taxpayers from resolving their disputes in prior IRS settlement initiatives. In ending the uniform settlement initiative, the IRS made it clear that it will not issue additional uniform settlement letters in the future. Any deadlines for accepting previously issued offers have been withdrawn. However, prior elections made by taxpayers to participate in the uniform settlement initiative will remain in effect.
Those taxpayers with pending cases may continue to request settlement under the May 13 framework through their assigned revenue agent or chief counsel representative. If the case remains eligible, the IRS will issue a new offer on the same standardized terms. Importantly, individual cases may be settled on different terms where warranted by the hazards of litigation.
IRS has specifically stated that this transition from uniform standardized settlements does not signal new or more favorable standardized offers. It just confirms that it ends the issuance of uniform offers and uniform deadlines. The IRS explained that through administrating the uniform settlement initiative, it found that fixed procedures with standardized terms were not well suited to the wide range of conservation easement cases, which may differ materially in partnership agreements, insurance arrangements, procedural posture, and other circumstances affecting when and how taxpayers evaluate settlement.
Taxpayer Considerations
Taxpayers who previously elected to participate in the uniform settlement initiative may wish to confirm that their election is being processed under its terms. Taxpayers with pending conservation easement cases outside of the uniform settlement initiative should contact their tax adviser to evaluate their options in light of the end of the uniform settlement initiative and the establishment of the new Office of Conservation Easements. Once operational, the Office will provide central coordination and a channel for general inquiries, with additional contact information to be announced separately.