Over 25 Years Guiding Clients Through Estate And Probate Planning And Litigation

Experience Matters In Tax Litigation

Have you received a Notice of Deficiency from the IRS? Disputes with the IRS over taxes can be extremely stressful. Going up against one of the country’s most feared institutions, all while needing to comprehend complex tax-related rules and regulations, is not something you should do alone. Whether you choose to fight or seek the best compromise available, you will benefit greatly from an attorney experienced in navigating the difficult terrain of tax law.

Litigating Tax Issues In The U.S. Tax Court Or A U.S. District Court

If you choose to contest a Notice of Deficiency, you may want to do so in the U.S. Tax Court. The advantage to doing so in this context is that the U.S. Tax Court is the only court that will enter a judgment in your case before you pay the tax. Contrast this procedure with that of a U.S. District Court, which requires you to pay your tax deficiency and then file a claim for a refund with the IRS. Common tax litigation issues include:

  • Accuracy-related penalties
  • Trade or business expenses
  • Gross income
  • Summons enforcements
  • Appeals from collection due process hearings
  • Failure to file
  • Failure to pay penalties
  • Charitable deductions
  • Frivolous issues penalty
  • Civil actions to enforce federal tax liens
  • Relief from joint and several liabilities

An Alternative To Litigation: The IRS Offer In Compromise Program

An alternative to litigation is an Offer in Compromise – a form of dispute resolution with the IRS. Before you may make an offer, you must be eligible. Eligibility hinges on the following criteria:

  • Filing all tax returns that you are legally required to file
  • Making all required estimated tax payments for the current year
  • Making all required federal tax deposits for the current quarter if you are a business owner with employees

A bar to eligibility is if you or your business is currently in bankruptcy.

Once eligible, you may participate in the IRS Offer in Compromise program. In doing so, you enter into a formal agreement with the IRS that settles your tax debt for less than the full amount owed. The exact amount (the Compromise) is determined by the IRS in accordance with your income, expenses, assets and ability to pay. Even if you meet the initial eligibility criteria, the IRS may still reject your Offer if you are able to pay your full tax debt in installments. An Offer in Compromise is not for people who just don’t want to pay all the taxes they owe. Rather, it’s reserved for those who would suffer financial hardship as a result of satisfying their full tax liability.

Knowledgeable Tax Litigation Representation

Remember, time is of the essence in matters with the IRS. If you have received a Notice of Deficiency from the IRS, you need to respond in a timely fashion. Whether you choose to fight or seek the best possible compromise, call attorney Charles T. Weiss, P.A., at 561-848-9970 to discuss your IRS-related concerns immediately. You may also use this email form.