Tax Controversy Services

We offer Tax Controversy Services to individual and business clients who are facing potential tax assessments, collection efforts, and formal civil or criminal investigations.

Assessment Issues

Audit Representation: Tax is not owed by a taxpayer until it is assessed. We represent clients in pre-assessment audits and examinations with the IRS, Massachusetts Department of Revenue, and other state and local authorities. We carefully advise our clients on all issues under consideration and help them decide which audit positions they should contest. We advise our clients on managing audit responses so that they preserve as much privacy and legal protections as possible while responding thoroughly to information and document requests.

Settlement Conferences and Appeals: If the audit process does not result in a satisfactory outcome, we help our clients pursue their case with an IRS settlement conference or with an appeal to the Massachusetts Appellate Tax Board. If these processes do not result in a reasonable outcome, we can pursue the claims further in court. Our tax attorneys and litigation attorneys have experience arguing tax cases in the U.S. Tax Court and Massachusetts Superior Court.

Collection Issues

Payment Agreements and Installment Plans: If a client is facing a liability greater than their ability to pay, we can help negotiate an installment agreement that will not disrupt their business operations and will minimize the impact on their personal lives. We add value in this area through our extensive knowledge of the rules tax authorities are required to follow in accepting or rejecting installment plan offers. We have had success in obtaining favorable installment agreements for clients of all sizes.

Offers-In-Compromise Requests/Settlement Offers: We assist clients with preparing and submitting formal offer-in-compromise requests. If successful, these offers can result in a permanent reduction of the taxpayer’s outstanding liability, usually in exchange for a lump sum payment or series of payments. Because this process provides taxpayers with an opportunity to escape significant tax liability which they were previously held to be liable for, the criteria for granting this type of relief is usually very demanding. We have the knowledge and skill required to reduce the chances a reasonable offer prepared consistent with IRS’s own internal guidelines is accepted. In the event the IRS erroneously rejects such an offer, we can file an appeal.

Collection Appeals and Preventing Property Seizure: We work with our clients to prevent their tax matters from putting their property and paychecks at risk. This typically entails asserting their legal rights before tax authorities attempt a garnishment, seizure, or levy. Under the right circumstances, we can defer or prevent collection actions from taking place. We also have experience structuring transactions to help our clients protect their assets from an invasive levy or seizure.

Release of Tax Liens and Levies: Tax liens can seriously disrupt a client’s access to capital. In some cases, this disruption may indirectly hurt the government’s ability to recover back taxes by preventing the taxpayer from being able to make a living. We work with clients to make sure that tax authorities follow the law in recording such liens, and make sure such liens are released when they are no longer enforceable. We also help obtain voluntary releases or subordinations agreements when such actions are mutually beneficial to the government and our clients.

Civil and Criminal Tax Matters

We represent clients with potential civil fraud or criminal tax exposure. In many cases, this means carefully managing a standard civil audit as to minimize the likelihood the taxpayers will involuntarily incriminate themselves. If necessary, we can hire accountants that can provide services that are protected by attorney-client privilege and defend our clients in federal or state court against serious charges.

Representative matters:

• Obtained $38,000 Massachusetts estate tax refund in contested matter concerning enforceability of shareholder buy-sell agreement.
• The IRS questioned the value of the stock in a large gift tax audit concerning donation of company stock valued in excess of $10 million. The IRS tried to adjust the amount to the disadvantage of our client. We obtained for our client a “no change” letter meaning the original valuation was unchanged.
• For a chain of convenience stores, we successfully eliminated a proposed six-figure penalty under the employer shared responsibility provision.
• We significantly lowered a seven-figure FBAR penalty assessment for a client with undisclosed offshore bank accounts.