The Internal Revenue Service (IRS) reminded taxpayers to stay alert during filing season which is when scams and misleading tax advice tend to spike. As part of its annual “Dirty Dozen” campaign, the IRS highlighted common schemes designed to lure taxpayers into sharing personal information or claiming improper tax benefits.

These scams often take the form of emails, text messages, phone calls or social media posts that appear credible but are intended to steal sensitive data or pressure taxpayers into making costly mistakes on their returns. Some threats include more sophisticated tactics, such as IRS impersonation using artificial intelligence, false claims about tax credits or advice that encourage taxpayers to inflate deductions or manipulate income reporting.

Many schemes employ tactics to sound appealing or urgent, but they can lead to serious consequences including delayed refunds, IRS audits, penalties or identity theft. The IRS emphasizes that if something sounds too good to be true, it usually is.

To protect yourself, the IRS encourages a simple but effective approach of remaining cautious of unsolicited messages, avoiding sharing personal or financial information and relying on trusted tax professionals when making decisions about your tax return. The IRS typically contacts taxpayers by mail, not through unexpected emails or texts, and the IRS will not demand immediate payment or sensitive information through those channels. Taxpayers should stay informed of common scams and take a moment to verify any suspicious communications. These steps can go a long way in preventing identity theft.

IRS Tax Forum Announced

The Internal Revenue Service (IRS) has announced details for its 2026 Nationwide Tax Forum. The forum is the annual outreach program designed specifically for tax professionals, including CPAs, enrolled agents and attorneys.

The forums will be held in five cities nationwide between July and September 2026. Tax professionals can visit the IRS website to learn more about the dates and locations.

The forum is structured as a three-day program focused on the latest federal tax law updates, IRS procedures and emerging issues affecting the tax professional community. Each forum will feature more than 40 seminars and workshops led by IRS experts and partner organizations, with attendees eligible to earn up to 18 continuing education credits.

In addition, the forum will host an exhibit hall showcasing tax technology and services, offer opportunities to engage directly with IRS subject matter experts and appointments for the Case Resolution Program that allows practitioners to meet one-on-one with IRS personnel to address specific client issues. Optional pre-forum sessions, hosted by partner organizations, will focus on practice management, productivity and client development.

Registration is currently open, with early bird pricing available through mid-June. Additional discounts are offered through certain professional associations. The 2026 Nationwide Tax Forum is a comprehensive professional development and networking event, combining technical education with practical tools and direct access to IRS resources.

Partnerships’ Charitable Deductions Reduced

In Harman Road Property LLC v. Commissioner, No. 12304-20; No. 12517-20; No. 13271-20; No. 13663-20; T.C. Memo. 2026-23, the Tax Court considered whether two partnerships were entitled to charitable deductions for the donation of conservation easements.

The Tax Court consolidated the cases for Green Rock Properties, LLC and Harman Road Property, LLC related to charitable contributions of conservation easements to a qualified nonprofit. The parties agreed to various stipulations of fact. The remaining issues before the Court were 1) the fair market value of the conservation easements, and 2) if any penalties were appropriate under Internal Revenue Code Sections 6662 and 6662A.

The partnerships acquired undeveloped land in Georgia and subsequently granted conservation easements. Based on appraisals obtained by the partnerships, the taxpayers claimed charitable contribution deductions reflecting substantial increases in value compared with the partnerships’ original purchase prices.

Green Rock’s purported appraised value for the conservation easement was $13.57 million, and Harman Road’s value was claimed to be $18.3 million. The Internal Revenue Service (IRS) challenged the deductions, asserting that the appraisals relied on unsupported assumptions regarding the properties’ highest and best use as granite quarries and, therefore, overstated the value of the donated easements.

The Court conducted a detailed review of the valuation methodology used by the taxpayers’ appraisers. As is typical in conservation easement cases, the appraisals used a “before and after” valuation approach that compared the value of the property assuming the highest and best use of the property. The property for both LLCs was zoned for agricultural purposes, not granite quarrying.

The Tax Court concluded that the taxpayers’ experts relied on unrealistic development scenarios and failed to support them with evidence relating to zoning restrictions, infrastructure availability and market demand. The court also criticized the selection of comparable sales, noting that several comparables involved properties with materially different characteristics or development prospects.

The IRS appraisal expert used a more conservative analysis of the properties’ realistic development potential and market conditions. After weighing the competing expert testimony, the Court determined that the taxpayers’ valuations were substantially overstated and adopted lower easement values based largely on the IRS expert’s analysis.

The Tax Court determined Green Rock’s charitable deduction was valued at $81,000 and that Harman Road’s charitable deduction was valued at $145,000. Because the corrected values were significantly below the amounts claimed on the returns, the Court sustained substantial valuation misstatement penalties under Section 6662.

The partnerships argued that they relied in good faith on professional appraisers, but the Court concluded that the defense is not available for substantial valuation overstatements. The appraisal assumptions were not based in reality, and the resulting values were implausibly high relative to the partnerships’ acquisition costs.

The decision reflects the Tax Court’s continued scrutiny of syndicated conservation easement transactions and reinforces the importance of credible development assumptions, appropriate comparable sales and careful due diligence when substantiating charitable deductions for conservation easement gifts.

Applicable Federal Rate of 4.6% for April: Rev. Rul. 2026-7; 2026-15 IRB 1 (16 March 2026)

The IRS has announced the Applicable Federal Rate (AFR) for April of 2026. The AFR under Sec. 7520 for the month of April is 4.6%. The rates for March of 4.8% or February of 4.6% also may be used. The highest AFR is beneficial for charitable deductions of remainder interests. The lowest AFR is best for lead trusts and life estate reserved agreements. With a gift annuity, if the annuitant desires greater tax-free payments the lowest AFR is preferable. During 2026, pooled income funds in existence less than three tax years must use a 4.0% deemed rate of return. Charitable gift receipts should state, “No goods or services were provided in exchange for this gift and the nonprofit has exclusive legal control over the gift property.”