What is a conservation easement?

A permanent restriction on land use, donated to a qualified land trust. The trust holds the restriction in perpetuity; the landowner retains compatible uses. The donation creates a charitable deduction equal to the diminished land value.

How much can I deduct?

Equal to the diminished value of the land caused by the easement (determined by qualified appraisal). Typically 30-70% of land value depending on property. Deduction subject to AGI limits (50% for most donors, 30% for landowner-developers). Excess carries forward 15 years.

Will the IRS audit me?

Conservation easements have been an audit focus. Legitimate easements with quality engineering, MAI-credentialed appraiser, and reputable land trust hold up. We use the highest-quality service providers to minimize audit risk.

Can I still use my land?

Yes, in ways compatible with the easement. Typically: agriculture, ranching, residential use within limits, hunting and fishing. Restricted: development, subdivision, commercial operations not present at easement. Each easement is custom-designed.

Does the easement run with the land?

Yes, in perpetuity. All future owners are bound by the same restrictions. The land trust monitors compliance and can enforce against violations.

What about syndicated conservation easements?

Syndicated easements (where investors buy into a partnership that donates an easement) have been heavily targeted by the IRS. Many syndicated easements have been disallowed. We do not work on syndicated easements; only direct landowner donations with legitimate conservation value.

What does Sales Tax Audit Defense involve?

This page covers Sales Tax Audit Defense — including what it is, who needs it, how to file or apply, typical costs, deadlines, and how File.Business handles it for you end-to-end.

How much does Sales Tax Audit Defense cost with File.Business?

Pricing is shown on this page. We always disclose state filing fees separately from our service fee, with no surprise add-ons at checkout.

How long does Sales Tax Audit Defense take?

Turnaround depends on the state agency. Standard processing typically takes a few business days; rush options are available where the agency offers expedited service.

Is this service available in all 50 states?

File.Business handles filings across all 50 US states and DC. State-specific rules, fees, and forms are built into the workflow so you don't have to research them yourself.

Home/Sales tax/Audit Defense

Sales tax

Defend · negotiate · settle

Sales Tax Audit Defense. From notice to settlement.

A state sales tax audit can expose 4 years of back tax + interest + penalties - frequently in the high six figures or more. The auditor's job is to find error. Your job is to be prepared. We manage the full audit lifecycle: pre-audit document gather + risk assessment, contesting sampling methodology, substantiating exemption claims, negotiating with the auditor, formal protest + appeal if assessment is unreasonable. Attorney-supervised to preserve privilege.

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All 50 states + DC 60-day money-back SOC 2 Type II

CDTFA
L-118

CA Sales Tax Audit

Closed · matter 2025-CA-184

Settled

Proposed → Final Assessment

$1,184,200

$348,500

71% reduction · penalties waived

IDR responseDoc inventory + scope objections

- Jan 8

Sample challengeStatistical stratification rejected

-$284K Feb 4

Exempt cert backfill418 certificates reconstructed

-$362K Feb 21

Negotiated settlementPenalty waived · interest at statutory

-$190K Mar 14

Attorney-supervised · work product preserved $836K saved

How it works

How we handle Conservation Easement, end-to-end.

A conservation easement is a permanent restriction on the use of land, typically donated to a qualified land trust to preserve the land's natural or open-space character.

Eligibility review

Land must have conservation value: scenic, ecological, historic, open-space, or recreational. We assess whether your land qualifies. Most rural and undeveloped properties do; urban properties rarely.

Land trust selection

Donation must be to a qualified land trust (501(c)(3)). We refer to local and national land trusts (Land Trust Alliance, The Nature Conservancy, regional trusts). They accept the easement and hold the restriction in perpetuity.

Engineering + appraisal

Engineering work documents the conservation value. Qualified appraisal determines diminished land value (the deduction amount). IRS scrutinizes appraisals; we use highly credentialed appraisers with conservation easement experience.

Legal documentation + closing

Easement document recorded with county recorder. Permanent restriction runs with the land. Donor receives appraisal-supported deduction. Coordination with attorney specializing in conservation easements.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent conservation easement pricing.

Government fees pass through at cost. No upsells.

Audit assessment review

$1,499

Spot opinion

Review audit notice + initial findings + recommend strategy. Best when you have already engaged with auditor + want second opinion. Excludes ongoing representation.

Get started

Full audit defense retainer

$5,999

+ hourly

Retainer for full audit lifecycle. Hourly billing for active engagement (typically 30-80 hours total). Includes attorney supervision. For audits with $250K+ proposed assessment.

Get started

Defense + protest + appeal

$24,999

Through litigation

Full audit + formal protest + administrative appeal. Includes expert witness if needed. For complex audits or large dollar exposure (over $1M).

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FAQ

About the Conservation Easement Service.

What is a sales tax audit?

A sales tax audit is a state's review of your records to verify you collected, reported, and remitted the correct sales tax, examining sales, exemptions, and returns over a look-back period. States audit for it actively. We keep your registrations and records organized so an audit is manageable rather than alarming.

Why did I get selected for a sales tax audit?

Common triggers include large or growing sales, industry risk factors, discrepancies between reported figures, exemption certificate issues, or random selection. Being registered and filing consistently reduces flags. We keep your filings clean so you are less likely to be flagged and better prepared if you are.

What does an auditor look at?

Typically your sales records, exemption and resale certificates, returns, and whether the tax collected matches what you remitted, over the audit period. Missing exemption certificates are a frequent problem. We keep your records and certificates organized so they hold up.

What is the biggest audit risk?

Often unsupported exempt sales: if you did not collect tax on a sale claimed as exempt but lack a valid certificate, the auditor can assess the tax plus penalties. We help you keep certificate management tight so exempt sales are actually documented.

What happens if the audit finds I owe?

The state assesses the underpaid tax plus interest and penalties, which you can sometimes reduce through the process or by showing reasonable positions. We keep your records organized so any assessment is minimized and defensible, and coordinate with a tax professional for defense.

How far back can a sales tax audit go?

It varies by state, often three to four years, but can be longer if you never registered or filed, since the clock may not start until you do. Registering and filing limits the look-back, and we help you get compliant to close open exposure.

How do I prepare for a sales tax audit?

By having organized sales records, valid exemption and resale certificates, and consistent returns ready, which is far easier if you kept them clean all along. We keep your registrations, filings, and certificate records organized so preparation is not a scramble.

Can I reduce exposure before an audit?

Yes: cleaning up certificate gaps, correcting past filings, and using a voluntary disclosure for unregistered exposure can reduce look-back and penalties before an audit finds it. We help you assess and address exposure proactively.

Can File.Business help with a sales tax audit?

We keep your registrations, filings, and certificate records organized so an audit is manageable, help you address exposure proactively, and coordinate with a tax professional for the defense, so an audit is a process rather than a crisis.

SOC 2 Type II audited

220,000+ businesses. 60-day money-back. State fees passed through at cost.

Your operating system, not a transaction

Every deadline auto-tracked across your entities. Compliance Score visible year-round.

Transparent pricing

No hidden fees. No upsells at checkout. State fees disclosed upfront.

Business Operating System

I'm starting something

I have a deadline

Something is changing

I need to prove / protect

Build with File.Business

I serve clients

I run a [industry]

I manage multiple entities

I'm integrating or referring

BosAI · your compliance brain

I want intelligence

I need communications

I run money & people

I operate at scale

State of Business Compliance 2026

I want to learn

I want to compare / calculate

I want to research deeper

I need help

Sales Tax Audit Defense. From notice to settlement.

How we handle Conservation Easement, end-to-end.

Eligibility review

Land trust selection

Engineering + appraisal

Legal documentation + closing

A clean handoff, in four steps.

A name that's actually available.

Filed with the Secretary of State.

EIN + the right tax setup.

Registered Agent + deadline tracking.

Transparent conservation easement pricing.

Audit assessment review

Full audit defense retainer

Defense + protest + appeal

About the Conservation Easement Service.

Start your business in the next 5 minutes.

I'm starting something

I have a deadline

Something is changing

I need to prove / protect

I serve clients

I run a [industry]

I manage multiple entities

I'm integrating or referring

I want intelligence

I need communications

I run money & people

I operate at scale

I want to learn

I want to compare / calculate

I want to research deeper

I need help

Sales Tax Audit Defense. From notice to settlement.

How we handle Conservation Easement, end-to-end.

Eligibility review

Land trust selection

Engineering + appraisal

Legal documentation + closing

A clean handoff, in four steps.

A name that's actually available.

Filed with the Secretary of State.

EIN + the right tax setup.

Registered Agent + deadline tracking.

Transparent conservation easement pricing.

Audit assessment review

Full audit defense retainer

Defense + protest + appeal

About the Conservation Easement Service.

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Start your business in the next 5 minutes.