2012 GOP presidential nominee Mitt Romney will hit the fundraising circuit in Texas tomorrow, attending a fundraiser in San Antonio hosted by billionaire Billy Joe McCombs. Likely not on the table for discussion, though, is the fact that McCombs was ordered by the IRS to pay $44.7 million after using a scheme meant to avoid capital gains taxes:
McCombs is contesting the IRS’ assertion that he should have reported $213.4 million in long-term capital gains in 2002 from the sale of 11.3 million shares of Clear Channel Communications Inc., the company he cofounded in 1972. He’s also disputing an additional $3.3 million in 2003 capital gains in connection with the same purported sale. In all, the IRS asserts, McCombs had $245 million in taxable income for 2002 and 2003, rather than the $18 million he reported and owed $53 million in income tax, not the $8 million he paid.
The case involves a complicated strategy, which was widely peddled by Wall Street as a way for rich folks like [billionaire Phil] Anschutz and McCombs to raise cash from highly appreciated stock positions, while deferring capital gains tax.