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Advocates Alert 4/2/2008: Final Push on the Farm Bill; Tax Season Reminder

1. Congress returns from recess this week and attention is finally turning to tax provisions in the Farm Bill. It's not too late to have an impact, but the next two weeks could be our last chance to get the easement incentive included in the final bill.
2. Please scroll down for a few important tax season reminders.

1. Farm Bill Progress Sets the Stage for Final Push on the Easement Incentive
Over the past two weeks, Congressional leaders have proposed several "frameworks" for overall Farm Bill spending. The latest deal, which has broader support than earlier ones, would provide $4 billion "above baseline" for conservation programs over the next 10 years.

Tax provisions--including our easement incentive--have been on the back burner for weeks, but with apparent consensus on Farm Bill spending, negotiations between the Senate Finance Committee and the House Ways & Means Committee have begun in earnest.

It's not too late for your efforts to have an impact on this process. We're still looking to generate personal calls from your Representatives to key leaders of the House. Please think about who on your board or in your community can best reach your Representative directly and ask them to make such a call. Even if you have a commitment from your Representative to make such a call, we encourage you to follow-up now that Congress is back in Washington.

Ask Democrats to call:

• House Ways & Means Committee Chairman Charlie Rangel (D-NY)
• Speaker Nancy Pelosi (D-CA)

Ask Republicans to call:

• House Ways & Means Committee Ranking Member Jim McCrery (R-LA)

As them to tell these leaders:

• The tax incentive for conservation easements in Section 12203 of the Senate's Farm Bill is very important to landowners and conservationists in my district.
• It's extremely important we get this done in the Farm Bill, before we lose valuable conservation opportunities.

Click here for a fact sheet you can use.

2. Tax Season Reminders: Don't Forget Your Donor Letters and 990 e-Postcards
--Donors seeking deductions for charitable contributions of $250 or more are required to obtain "contemporaneous written substantiation" of their gift from the charity. If you're not providing such a letter to conservation easement donors, you should, as some easement deductions have been challenged on this basis.

To be "contemporaneous" this letter or email should be received before a donor files for the tax year in which the deduction is taken. In most cases that means you have until April 15th to send your acknowledgment letters for 2007 donations. This can be written as a thank you letter, but must reference whether the donor received any goods and services in exchange for their gift. For detailed advice and examples visit: http://www.lta.org/publicpolicy/tax_acknowledgement_letter.html.

--If you are a tax-exempt organization that normally has annual gross receipts of $25,000 or less and thus does not have to file Form 990 or 990-EZ, there is a new requirement that you must file a 990 e-Postcard (also called Form 990-N). Starting with tax years ending December 31, 2007 or later, the e-Postcard is due by the 15th day of the fifth month after the close of your tax year. If your organization operates on a calendar year, the e-Postcard is due by May 15. Nonprofits that do not file risk losing their tax-exempt status.

If you think this new filing requirement may apply to your organization, go to http://www.irs.gov/charities/index.html for complete details.

Thank you for helping!

Russ Shay                               Lynne Sherrod                           Sean Robertson
Director of Public Policy            Western Policy Manager            Public Policy Specialist 
Land Trust Alliance                   Land Trust Alliance                    Land Trust Alliance
rshay@lta.org                          lsherrod@lta.org                        srobertson@lta.org  
202-638-4725 x305                   970-245-0439                            202-638-4725 x319

Sign up to be a Land Trust ADVOCATE at: http://www.lta.org/publicpolicy/advocates.htm
Land Trust Alliance ~ 1660 L St. NW, Suite 1100 ~ Washington DC, 20036 ~ (202) 638-4725.