If the IRS or state taxing authority conducts an audit and determines there is additional tax due, the taxpayer may have administrative appeal rights.  For example, if the IRS issues a “30-day letter”, the taxpayer can appeal to the IRS Office of Appeals by filing a Protest.  We represent clients in this process by advising as to whether to appeal, preparing the appeal, and handling the hearing.  Many cases are settled or otherwise resolved based on “hazards of litigation.”  We apply our deep knowledge of tax law and procedure, as well as our experience trying tax cases in court, to identify “hazards of litigation” to the IRS and use them to obtain favorable resolutions for our clients.  Of course, every case is different and outcomes always depend on the unique facts and circumstances, as well as the relevant law.  Like our audit practice, administrative appeals provide opportunities for us to work alongside our clients’ accounting teams.  We are always happy to collaborate and work together to achieve the best possible results for our clients.

Criminal tax investigations are rare, but when they occur, they are life-altering.  If there is a way to reach a civil resolution, we will find it, but if not, we work with our clients to defend against criminal tax allegations and do our best to avoid charges whenever possible.  In the event charges are unavoidable, we will work with our clients to reach the most favorable resolution possible under the circumstances, which may include taking the case to trial.  

In addition to representing clients under investigation for tax crimes, we represent clients who are witnesses in criminal tax investigations.  For example, we have had many opportunities to represent accountants who have been asked by the IRS to produce records and give interviews in investigations involving their clients.  We guide them through that process, advising them of their ethical obligations along the way.

Most tax cases are resolved outside the courtroom, but sometimes an out of court resolution cannot be reached.  When that occurs, we have experience litigating tax cases in both the U.S. Tax Court and in federal district courts.  These matters include litigation in the Tax Court challenging an IRS Notice of Deficiency or Notice of Determination and litigation in the United States District Courts involving criminal accusations, enforcement of IRS summonses, actions for injunctive relief brought by the Tax Division of the Department of Justice; and suits seeking refunds of previously paid taxes and penalties.

We frequently represent lawyers, accountants, appraisers, and other tax professionals in their own tax controversies against the IRS and Department of Justice.  The IRS has many penalty statutes available and will sometimes aggressively pursue tax professionals for allegedly reckless positions taken on tax returns, the promotion of what the IRS believes to be abusive tax shelters, and fraud.  We vigorously defend clients in these investigations and attempt to avoid injunction actions and criminal tax investigations.  We also represent tax professionals before the IRS’s Office of Professional Responsibility in matters involving Circular 230, as well as before their state licensing boards.

The United States Treasury and state taxing authorities are powerful creditors with the ability to file liens and seize money and other property.  We have vast experience working with clients to obtain Installment Agreements, Offers in Compromise, and penalty relief.  We know our clients’ rights, how to navigate through government bureaucracy, and how to use the Collection Due Process procedures to obtain favorable collection resolutions.

Under the federal system, and in several states, as well, spouses who file joint tax returns are jointly and severally liable for any underreported tax and/or unpaid tax liabilities associated with those returns. The Internal Revenue Code recognizes the unfairness of this system and allows for relief from that obligation under certain circumstances. We represent clients in filing claims for relief from such liabilities, and in appealing adverse determinations when necessary.

The IRS and some state taxing authorities have procedures in place for taxpayers to voluntarily disclose illegal conduct such as tax evasion.  We advise clients who are concerned about possible criminal exposure and who are interested in coming into compliance and avoiding criminal prosecution.  We carefully review the options for doing so, including voluntary disclosures, and represent clients through the process.

The IRS and state taxing authorities regularly assess civil penalties against taxpayers for a variety of reasons including:  late filing of tax returns, late payment of tax, accuracy related penalty and/or substantial understatement of tax, failure to electronically file Forms W-2, failure to issue and/or failure to file correct information returns; failure to comply with the Affordable Care Act; and failure to file matching Forms 941 and Forms W-2.  We assist clients in claims for penalty relief for these and many other types of penalties.

A business with employees must withhold certain employment taxes and remit those taxes to the taxing authorities.  If that does not happen, the IRS may show up to collect the unpaid employment taxes from the business and seek to assess a “trust fund recovery penalty” against the person(s) responsible for collecting and failing to remit the tax. The IRS also conducts investigations to determine whether workers are properly classified as employees or independent contractors and those examinations may result in significant assessments and/or penalties.  These cases are sensitive because the IRS may also refer the employer and/or responsible persons for criminal investigation.  We represent clients in all types of employment tax matters and help clients get into compliance with respect to their employment tax obligations.

For a number of years, the IRS has vigorously targeted United States persons with ownership of, signature authority over, or other connections with foreign assets, and who have not complied with reporting and tax obligations relating to those assets, for civil and criminal enforcement actions relating to such noncompliance.  Oftentimes the taxpayer didn’t even know what the law required them to do.  We represent taxpayers in these civil and criminal enforcement actions.  We also provide advice and assistance, when appropriate to the clients’ circumstances, in getting ahead of, and often avoiding, such enforcement actions by proactive measures, including but not limited to quiet disclosures or participation in IRS programs such as the IRS Criminal Investigation Voluntary Disclosure Practice; Streamlined Filing Compliance Procedures; Delinquent FBAR submission procedures; and Delinquent international information return submission procedures.

The IRS recently announced new efforts focused on high-income taxpayers who have failed to file income tax returns.  We have substantial experience representing clients who have unfiled tax returns.  We review our clients’ individual situations and, based on their life circumstances, reasons for non-filing, and the number of unfiled returns and amount of unpaid tax liabilities, among other factors, advise our clients as to the most strategic way for them to come into compliance.  We work with our clients to determine their priorities, which often include minimizing the likelihood of a referral to IRS-Criminal Investigation.  We also work with those clients who are unable to pay their delinquent tax liabilities after coming into filing compliance.