In early December, the IRS issued proposed guidance on the self-employment tax treatment of Conservation Reserve Program (CRP) payments. The key point of the Notice is that participating in the CRP is deemed to be a trade or business - regardless of whether the participant performs the required activities or uses a third party. The IRS has concluded that CRP rental payments are made in exchange for conducting activities that meet the commitments of a CRP contract and are not payments for the right to use or occupy real property. The Notice takes the same position that the IRS Chief Counsel’s Office took on the matter in 2003. Interested persons may submit comments on the proposed ruling to the IRS by March 19, 2007. IRS Notice 2006-108.