In PBBM-Rose Hill, Ltd. v. Commissioner, the Fifth Circuit Court of Appeals affirmed the Tax Court's denial of the taxpayer's claimed conservation easement charitable deduction, as well as the Tax Court's assessment of an overvaluation penalty relating to the easement. In upholding the lower court, the Fifth Circuit held the easement did not meet the perpetuity requirement of Section 170(h)(5)(A), even though it fulfilled the charitable purpose of preserving land for outdoor recreation by the general public under Section 170(h)(4)(A)(i).

The Treasury's latest update to the 2017-2018 Priority Guidance Plan ("Plan") reflects the current projects for the fiscal year July 1, 2017 through June 30, 2018. This final quarterly update includes 12 new projects, as well as 1 project that was closed without publication. Starting with the second quarter update, the Plan also includes various guidance projects related to the initial implementation of the Tax Cuts and Jobs Act.

In Rev. Rul. 2018-23, the Service announced the Section 7520 rate for September will remain at 3.4%, for the fourth month in a row. At 3.4%, the rate remains the highest since May 2010.

The IRS has announced the Applicable Federal Rates for September 2018, including the Section 7520 rate of 3.4%.