When Baseball Legends Meet the IRS: The Conservation Easement Crackdown

For Atlanta Braves fans, the names John Smoltz and Ryan Klesko conjure up memories of home runs, strikeouts, and championship glory. But in September 2025, their names hit the headlines for a very different reason: the IRS and federal courts slashed a nearly $48 million conservation easement deduction claimed by their partnership down to just $4.6 million.¹

The case, Buckelew Farm, LLC v. Commissioner, was more than just another tax dispute. It was a high-profile reminder that conservation easement tax shelters—a strategy once pitched as both patriotic and profitable—carry serious risks, even for household names.

And for thousands of fans, the message was jarring: if Braves icons Smoltz and Klesko can end up in the IRS’s crosshairs, anyone can.

The Smoltz & Klesko Case: A Game of Inches

Smoltz and Klesko’s company, Buckelew Farm LLC, donated a conservation easement on 1,560 acres of land in Jones County, Georgia, in 2013. The partnership claimed the easement wiped nearly $48 million off the property’s value.

But the IRS wasn’t buying it. Government experts argued that the “hunting-oriented residential community” used to justify the valuation was speculative at best—it depended on zoning approvals that were unlikely ever to come through. The Tax Court agreed, pegging the deduction at just $4.6 million.

On appeal, Smoltz and Klesko’s lawyers argued that the proceedings were unfair, even pointing to redacted personal returns being used as evidence. But in September 2025, the Eleventh Circuit sided with the IRS, affirming the $43 million haircut and leaving Braves fans stunned.

From Braves Country to Bonaire: The Bigger Story

While Smoltz and Klesko grabbed headlines, their case is part of a much larger saga. For years, promoters pitched conservation easements as a win-win: land is “protected forever,” and investors get massive tax deductions.

But behind the glossy brochures, abusive syndicated conservation easements exploded. Promoters bought land on the cheap, hired friendly appraisers, and claimed eye-popping deductions based on improbable development scenarios.

No one pushed this harder than Jack Fisher, a North Carolina accountant who became the face of the movement. Fisher’s empire sold investors over $1.3 billion in fraudulent deductions, promising returns up to 4.5× their cash contributions.² One deal involved paying $12 million for land that was appraised at $223 million for deduction purposes in less than six months.

In January 2024, Fisher was sentenced to 25 years in prison. His attorney-partner, James Sinnott, received 23 years. Multiple accountants and appraisers pleaded guilty. It was the first-ever criminal trial of an easement promoter—a watershed moment in the federal crackdown.

$36 Billion Loophole

The scale of the abuse was staggering. Between 2010 and 2018, syndicated easement deals generated nearly $36 billion in claimed deductions.⁵ The IRS fought back, labeling such transactions “listed” in Notice 2017-10 and warning taxpayers through its annual “Dirty Dozen” list.

Yet the IRS’s track record in court was mixed—sometimes losing on procedural grounds under the Administrative Procedure Act, though winning on valuation in cases like Smoltz and Klesko’s. Meanwhile, the industry fought back hard, even hiring lobbying firepower like Henry Waxman’s firm to resist legislative reform.

Turning Point: Congress & the IRS Close the Gap

It wasn’t until December 29, 2022, that Congress acted decisively. The SECURE 2.0 Act banned deductions for pass-through easement deals where the claimed deduction exceeded 2.5× investors’ basis, subject to exceptions like a three-year holding period.

Then in October 2024, Treasury and the IRS issued final regulations formally classifying abusive syndicated easements as listed transactions with mandatory disclosure obligations. The Joint Committee on Taxation projected the statutory fix would raise $12.5 billion through 2031.

Together, the law and the regs shut down a booming industry almost overnight.

Black Eye for Conservation

For conservationists, the abuse cut deep. “It’s egregious abuse. It’s a black eye for the land-conservation community,” said Lori Faeth of the Land Trust Alliance. Legitimate easements remain a vital preservation tool—protecting tens of millions of acres, including over 27.7 million acres by one estimate. But the scandals risk undermining public trust in an incentive that, when used properly, works exactly as Congress intended.

Final Score

For Braves fans, it may be surreal to see John Smoltz and Ryan Klesko—heroes of the diamond—making headlines for tax court rulings instead of playoff victories. But their case is now part of the cautionary tale.

The message is clear: conservation easements can be a legitimate tax benefit, but when they morph into aggressive shelters, they can cost investors far more than they save.

As IRS Commissioner Danny Werfel put it, abusive deals “generated high fees for promoters and willing participants who gamed the tax system with grossly inflated appraisals.”

The Braves lost a few tough games in their day. But losing $43 million of a tax deduction to the IRS? That’s the kind of box score no fan expected to see.