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Robert Probasco

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Demystifying Irs Transcripts, Robert D. Probasco, Nikki Mccain, Ann Garza Dec 2018

Demystifying Irs Transcripts, Robert D. Probasco, Nikki Mccain, Ann Garza

Robert Probasco

No abstract provided.

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Comments On Suggested Change To Tax Court's Rules Of Practice And Procedure, Robert D. Probasco Nov 2018

Comments On Suggested Change To Tax Court's Rules Of Practice And Procedure, Robert D. Probasco

Robert Probasco

Comments on behalf of the State Bar of Texas Tax Section to the U.S. Tax Court to suggest a change to the court's Rules of Practice & Procedure to allow for entries of limited appearance.

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Behind The Curtain - What Happens After You File A Federal Tax Return, Robert D. Probasco Sep 2018

Behind The Curtain - What Happens After You File A Federal Tax Return, Robert D. Probasco

Robert Probasco

No abstract provided.

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Surviving Irs Examinations And Appeals, Emily A. Parker, Robert D. Probasco Aug 2018

Surviving Irs Examinations And Appeals, Emily A. Parker, Robert D. Probasco

Robert Probasco

This article summarizes the statutory, regulatory and administrative rules and procedures that apply to IRS civil tax examinations and Appeals proceedings, including alternative dispute resolution procedures. The focus of this paper is on field examinations, rather than service center examinations, correspondence examinations, or office examinations. In addition, it attempts to answer some of the basic questions that taxpayers often ask their advisors and representatives when they are the subject of an IRS civil tax examination:

  • Why was I selected by the IRS for audit?
  • How long will this audit take?
  • Why do the agents want all this information, documents, data, …

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Tax Shelter Disclosure And Penalties: New Requirements, New Exposures, Mary A. Mcnulty, Robert D. Probasco Aug 2018

Tax Shelter Disclosure And Penalties: New Requirements, New Exposures, Mary A. Mcnulty, Robert D. Probasco

Robert Probasco

One of the primary weapons in the battle against tax shelters has been mandatory disclosure to the IRS. The American Jobs Creation Act of 2004 built on this approach by clarifying and making consistent the various disclosure requirements and strengthening penalties for non-disclosure. To uncover abusive transactions, Congress drew the boundaries of disclosure so broadly that even legitimate tax planning transactions are covered. To understand the dangers in the new rules, one must look at the broad range of transactions covered, the participants covered, and the harsh penalties for nondisclosure.

- Transactions Covered. The disclosure requirements apply to six categories …

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Tax Court Find Stars Transaction Lacks Economic Substance, Robert D. Probasco, Lee S. Meyercord Aug 2018

Tax Court Find Stars Transaction Lacks Economic Substance, Robert D. Probasco, Lee S. Meyercord

Robert Probasco

In Bank of New York Mellon Corp. v. Commissioner, the Tax Court found that a structured trust advantaged repackaged securities (“STARS”) transaction entered into by BNY Mellon lacked economic substance, and disallowed foreign tax credits of $199 million as well as transactional expenses of $8 million. BNY Mellon is the first test case to emerge from the IRS’s attempts to disallow tax benefits to several financial institutions that participated in the STARS transaction.

The STARS transaction is one of a number of different transactions that the IRS refers to as “foreign tax credit generators.” These transactions generally rely on inconsistent …

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Computing Interest On Overpayments And Underpayments: How Difficult Can It Be? Very!, Mary A. Mcnulty, David H. Boucher, Joseph M. Incorvaia, Robert D. Probasco Aug 2018

Computing Interest On Overpayments And Underpayments: How Difficult Can It Be? Very!, Mary A. Mcnulty, David H. Boucher, Joseph M. Incorvaia, Robert D. Probasco

Robert Probasco

Taxpayers often assume that the difficult part of a tax dispute is resolving the tax liability and penalties, while interest computation is fairly straightforward. In the authors' experience, however, interest determinations are as subject to controversy and prone to error as tax liability determinations. The Article explores some of the areas that taxpayers should review carefully in the process of finalizing interest computations.

- Frequent Errors. The Article reviews twelve areas in which, even though the law is settled and the facts are usually clear, the Service's interest computations frequently include mistakes. Taxpayers need to be aware of these provisions, …

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Much Uncertainty About Uncertain Tax Positions, Robert D. Probasco Aug 2018

Much Uncertainty About Uncertain Tax Positions, Robert D. Probasco

Robert Probasco

The Internal Revenue Service (IRS) announced in January 2010 a new initiative to require certain businesses to report “uncertain tax positions” on a new schedule filed with their annual tax returns. Draft schedules and instructions issued in April 2010 clarified some of the mechanical aspects of the new requirement but left many open issues and questions. The IRS proposal built on requirements by the Financial Accounting Standards Board (FASB) in FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). The standard requires companies, in their financial statements, to reserve some of the benefits from any position taken …

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Tefra-Partnership Refunds: Five Steps To Protect A Partner’S Rights, Mary A. Mcnulty, Robert D. Probasco, Carla C. Crapster Aug 2018

Tefra-Partnership Refunds: Five Steps To Protect A Partner’S Rights, Mary A. Mcnulty, Robert D. Probasco, Carla C. Crapster

Robert Probasco

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) established a unified procedure for determining the tax treatment of partnership items at the partnership level rather than the partner level. The TEFRA-partnership refund procedures differ from the refund claim procedures that apply to other taxpayers. For a TEFRA partnership, a refund claim is an administrative adjustment request (AAF) and a notice of deficiency is a notice of final partnership administrative adjustment (FPAA). Procedures for the assessment of additional tax attributable to partnership items have received much attention in recent years, but the procedures concerning refunds are complex and full …

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Navigating Tefra Partnership Audits In Multi-Tiered Entity Structures, Mary A. Mcnulty, Robert D. Probasco, Lee S. Meyercord Aug 2018

Navigating Tefra Partnership Audits In Multi-Tiered Entity Structures, Mary A. Mcnulty, Robert D. Probasco, Lee S. Meyercord

Robert Probasco

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) established a unified procedure for determining the tax treatment of partnership items at the partnership level rather than the partner level. Although these rules addressed a serious and real administrative problem in the assessment of partnership level deficiencies, they also created a complex process with many new problems and potential traps. One particularly unique set of challenges arises in the context of multi-tiered entities.

Multi-tiered entities are partnerships that have a partnership or other pass-through entity as a partner. The pass-through partner is commonly referred to as a “tier,” and …

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Advocating For Clients Whose Debts Were Assigned By The Irs To A Private Collection Agency, Michael Baillif, Robert D. Probasco, Miranda Rhyne Jun 2017

Advocating For Clients Whose Debts Were Assigned By The Irs To A Private Collection Agency, Michael Baillif, Robert D. Probasco, Miranda Rhyne

Robert Probasco

No abstract provided.

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Advocating For Your Client In Trade And Business Expense Cases - Hobby Losses, Rosty Shiller, Robert D. Probasco, Miranda Rhyne Jun 2017

Advocating For Your Client In Trade And Business Expense Cases - Hobby Losses, Rosty Shiller, Robert D. Probasco, Miranda Rhyne

Robert Probasco

No abstract provided.

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Comments On Proposed Regulations Concerning Definition Of Dependent, Robert D. Probasco May 2017

Comments On Proposed Regulations Concerning Definition Of Dependent, Robert D. Probasco

Robert Probasco

The Working Families Tax Relief Act of 2004 (the “2004 Act”) replaced multiple definitions of “child” utilized for child-related tax benefits within the Code with a uniform definition of “qualifying child” (“UDOC”). Additional changes to the UDOC have been made since 2004, as part of the Gulf Opportunity Zone Act of 2005, and through the Fostering Connections to Success and Increasing Adoptions Act of 2008.

The Section of Taxation previously provided extensive comments on the UDOC, expressing concerns with the UDOC and proposing both legislative and regulatory changes (“UDOC Report”). Some of these concerns were addressed by the Internal Revenue …

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Quoted In Daily Tax Report On Dow's Tax Penalty Loss, Robert D. Probasco May 2016

Quoted In Daily Tax Report On Dow's Tax Penalty Loss, Robert D. Probasco

Robert Probasco

No abstract provided.

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Quoted In Daily Tax Report On Stars, Robert D. Probasco Jan 2016

Quoted In Daily Tax Report On Stars, Robert D. Probasco

Robert Probasco

No abstract provided.

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Partnership Audits And Litigation (Tefra), Robert D. Probasco, Jason Freeman Oct 2015

Partnership Audits And Litigation (Tefra), Robert D. Probasco, Jason Freeman

Robert Probasco

No abstract provided.

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Quoted In Daily Tax Report On Irs Proposal For Listed Transaction Penalties, Robert D. Probasco Aug 2015

Quoted In Daily Tax Report On Irs Proposal For Listed Transaction Penalties, Robert D. Probasco

Robert Probasco

No abstract provided.

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Don't Leave Money On The Table! Irs [Mis]Computation Of Interest, Robert D. Probasco Dec 2014

Don't Leave Money On The Table! Irs [Mis]Computation Of Interest, Robert D. Probasco

Robert Probasco

No abstract provided.

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Comments Regarding Circular 230 Restrictions On Contingent Fees, Robert D. Probasco Jun 2014

Comments Regarding Circular 230 Restrictions On Contingent Fees, Robert D. Probasco

Robert Probasco

Section 10.27(b)(l) of Circular 230 prohibits, with certain exceptions, charging a contingent fee for services rendered in connection with any matter before the Internal Revenue Service (the "Service"). The "audit exception," in Section 10.27(b )(2), allows a practitioner to charge a contingent fee for services rendered in connection with the Service's examination of, or challenge to, either an original tax return or an amended return (or claim for refund or credit) filed within 120 days of the taxpayer receiving a written notice of the examination of, or a written challenge to, the original tax return.

We understand the Service's concerns …

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Quoted In Daily Tax Report On Irs Facing Setbacks For Economic Substance Strategy, Robert D. Probasco Jan 2014

Quoted In Daily Tax Report On Irs Facing Setbacks For Economic Substance Strategy, Robert D. Probasco

Robert Probasco

No abstract provided.

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Quoted In Daily Tax Report On The Fifth Circuit After 'Woods', Robert D. Probasco Jan 2014

Quoted In Daily Tax Report On The Fifth Circuit After 'Woods', Robert D. Probasco

Robert Probasco

No abstract provided.

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Quoted In Law360.Com Article On Regulation Of Tax Return Preparers, Robert D. Probasco Dec 2013

Quoted In Law360.Com Article On Regulation Of Tax Return Preparers, Robert D. Probasco

Robert Probasco

No abstract provided.

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Loving: Who Can The Irs Regulate?, Robert D. Probasco Dec 2013

Loving: Who Can The Irs Regulate?, Robert D. Probasco

Robert Probasco

A recent change to the regulations governing practice before the Internal Revenue Service, commonly known as “Circular 230,” is under attack.

In 2011, the IRS amended Circular 230 to regulate hundreds of thousands of tax return preparers who were not already covered by Circular 230 as attorneys or CPAs. The government describes these new regulations as of “exceptional importance to the administration of the tax laws.” But in January, the district court in Loving v. Internal Revenue Service granted declaratory and injunctive relief to the plaintiffs, concluding that the IRS lacked the authority to issue or enforce the new regulations. …

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Quoted In Tax Notes Today On Supreme Court Tax Decision, Robert D. Probasco Dec 2013

Quoted In Tax Notes Today On Supreme Court Tax Decision, Robert D. Probasco

Robert Probasco

No abstract provided.

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Quoted In Daily Tax Report On Supreme Court Ruling On Gross Valuation Misstatement Penalty, Robert D. Probasco Dec 2013

Quoted In Daily Tax Report On Supreme Court Ruling On Gross Valuation Misstatement Penalty, Robert D. Probasco

Robert Probasco

No abstract provided.

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How Stars Cases Apply Economic Substance Doctrine, Robert D. Probasco Nov 2013

How Stars Cases Apply Economic Substance Doctrine, Robert D. Probasco

Robert Probasco

Three recent cases applied the economic substance doctrine, with quite different results, to the structured trust advantaged repackaged securities (“STARS”) transaction, one of several “foreign tax credit generators” that the IRS is aggressively challenging. Most practitioners are very familiar with the “conjunctive vs. disjunctive vs. multifactor test” conflict over economic substance. These STARS cases illustrate that often what really drives the decisions are some of the nitty-gritty details of applying the applicable standard, which often allow courts a great amount of discretion. Some of the analysis in these cases was highly questionable. When the cases are appealed, we may get …

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Irs Gets Too Much Time To Go After Transferred Assets, Robert D. Probasco Nov 2013

Irs Gets Too Much Time To Go After Transferred Assets, Robert D. Probasco

Robert Probasco

The IRS has a wide variety of tools to collect taxes but, as with most creditors, experiences problems when the debtor/taxpayer transfers assets to a third party. Section 6901 of the Internal Revenue Code provides one solution: using the normal IRS administrative processes to assess and then collect from transferees. Alternatively, the IRS can proceed directly to court without assessing the transferee and seek to set aside the transfer and treat the property transferred as still owned by the transferor (taxpayer).

A recent split decision by the Tenth Circuit, in United States v. Holmes[1], addressed this collection alternative (a “direct …

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Quoted In Daily Tax Report On 'Midco' Asset Transaction, Robert D. Probasco Nov 2013

Quoted In Daily Tax Report On 'Midco' Asset Transaction, Robert D. Probasco

Robert Probasco

No abstract provided.

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Quoted In Reuters On Santander Ruling, Robert D. Probasco Oct 2013

Quoted In Reuters On Santander Ruling, Robert D. Probasco

Robert Probasco

No abstract provided.

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Comments On Proposed Regulations Concerning List Maintenance Requirements, Robert D. Probasco, David Colmenero, Shawn O'Brien, Brandon Bloom Sep 2013

Comments On Proposed Regulations Concerning List Maintenance Requirements, Robert D. Probasco, David Colmenero, Shawn O'Brien, Brandon Bloom

Robert Probasco

We commend the issuance of the Proposed Regulations and guidance provided relating to the failure to maintain a list of advisees with respect to reportable transactions. We respectfully offer for your consideration the following suggested changes:

• Exclude the language in Prop. Treas. Reg. § 301.6708-1(b)(3), which permits the IRS to leave a written request for a Section 6112 list at the last and usual place of abode or usual place of business of the person required to maintain the list; 
• Revise the language in subsection (b) of the Proposed Regulations to require that, in situations where the IRS …

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