Annette M. Ahlers, of counsel in the Tax and Estates Practice Group with Pepper Hamilton, was quoted in the August 23, 2018 Tax Notes Today article, "IRS Advice Denying Success-Based Fee Deduction Sets Off Alarm Bells."
Annette M. Ahlers of Pepper Hamilton LLP said that before the issuance of Rev. Proc. 2011-29, the IRS made it clear that contemporaneous documents and information other than an allocation letter were required to support an allocation for which there were no detailed invoices and time records.
Taxpayers that elect not to use the safe harbor must therefore follow the stringent documentation requirements under reg. section 1.263(a)-5(f), Ahlers said.