Whey Should You Hire a Tax Attorney?
Most tax problems begin as “routine” and then metastasize because the first response was casual, unprivileged, or handled by the original preparer. The moment the government is asking questions about your income, your records, or your intent, you do not need a form-filler—you need a strategist who can keep the engagement strictly civil, preserve privilege, and, if necessary, protect you from a life-altering criminal tax investigation by the clandestine IRS-Criminal Investigation (CI). At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Attorneys & CPAs are trained for precisely these moments: we run an examiner-style review under attorney–client/work-product protections, bring accountants in under Kovel so sensitive fact-gathering remains privileged, and control the sequence—what is said, to whom, and when—so you do not accidentally provide the government the very evidence it hopes to find.
When Criminal Tax Exposure is on the Table (Call Before Anyone Speaks to the Government)
If you have any concern that an issue could be viewed as willful, you should not let your preparer, bookkeeper, or CFO “explain things” to the IRS. Communications with non-attorney preparers are generally not privileged; they can be compelled to testify, and their workpapers can become exhibits. Call our dual-licensed Tax Attorneys & CPAs at the Tax Law Offices of David W. Klasing if you see any of the following:
- Contact from IRS Criminal Investigation (CI) or a surprise visit by Special Agents. The agents’ job is to gather evidence for prosecution—not to “help you fix it.” Say as little as possible and call counsel.
- A civil exam that feels like an eggshell audit (you fear truthful answers could be incriminating) or a reverse-eggshell audit (you suspect CI is already in the background). Examiners must consult a Fraud Technical Advisor when they see “firm indications of fraud” and can refer your case to CI on Form 2797.
- Badges of fraud: double sets of books, fabricated invoices, back-dated documents, unexplained cash deposits, circular related-party flows, or prior “clean-up” returns filed after the fact.
- Offshore/International Tax Exposure: Unfiled FBARs/FinCEN 114, Forms 8938/5471/8865/8858, asset-holding structures, cross-border merchant accounts, or digital-asset issues (unreported crypto disposals, staking/mining income, or exchange 1099 mismatches).
- Employment-Tax Pyramiding: Repeated failure to deposit payroll taxes or a proposed Trust Fund Recovery Penalty (TFRP) interview—both are civil and criminal priorities.
- Promoter-Linked or Listed Transactions: Including micro-captives and other reportable/transaction-of-interest items that trigger Form 8886 duties and harsh §6707A penalties if undisclosed.
At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Attorneys and CPAs conduct a privilege-protected diagnosis, evaluate exposure under the IRS-CI Voluntary Disclosure Practice (where appropriate, we handle Form 14457 pre-clearance and complete submission), and design a civil-resolution path that minimizes tax, interest, and penalties while protecting you, at all costs, from the IRS-CI criminal tax referral.
Civil Examinations Where Strategy and Privilege Decide Outcomes
Plenty of “civil only” cases still require an IRS tax attorney because the stakes turn on legal advocacy, procedure, and record-building—not just arithmetic:
- Field, Office, and Correspondence Audits (Individuals & Businesses): Our dual-licensed Tax Attorneys and CPAs replicate the IRS Required Filing Checks, reconcile books to bank activity and information returns, fix §6001/§274(d) documentation gaps, and control IDRs (Form 4564) and interviews to avoid misstatements.
- LB&I Large Case & Campaign Audits: If you’re a corporation or partnership with significant assets or complex cross-border items, campaigns (transfer pricing, foreign tax credits, GILTI/subpart F, micro-captives, etc.) can span multiple years and entities. We manage issue selection, scope creep, and closing strategies.
- BBA Partnership Examinations: Under the centralized partnership regime, tax can be assessed at the partnership level unless you timely “push out” under §6226. We quarterback the Partnership Representative role, make the right elections on time, and keep adjustments from ricocheting through tiered structures.
- Penalty Tax Defense: Many penalties rise or fall on legal standards: §6751(b) supervisory approval (chronic IRS defect), reasonable cause and good faith, hobby-loss factors under §183, at-risk and passive-activity limitations, and international information-return penalty abatement.
- Appeals and Litigation: If the 30-day letter does not resolve the issue, we draft a hazards-of-litigation protest for the Independent Office of Appeals. If the 90-day notice is issued, our dual-licensed Tax Litigation Attorneys & CPAs immediately file a U.S. Tax Court petition—no prepayment required—then drive discovery through Branerton correspondence (and formal discovery if needed), positioning the matter for a favorable stipulated settlement or proceeding to trial if necessary.
International, Digital-Asset, and “Paperless” Risk Profiles
The IRS and California state tax authorities flag borderless, data-light business models as higher risk. At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Attorneys and CPAs are routinely retained for:
- Foreign accounts/entities & information returns: FBAR/FinCEN 114, Forms 8938/5471/8865/8858/926/5472. Non-filing or willful misreporting can explode into catastrophic penalties and CI interest. We triage between reasonable-cause filings, amended returns, or VDP, where willfulness is in play.
- Crypto and digital assets: With standardized 1099 reporting rolling out and the Form 1040 digital-asset question, mismatches now feed audits. We reconcile wallets, exchanges, DeFi, staking/mining, and basis to keep matters civil and accurate.
Employment-Tax, ERC, and Worker-Classification Exposure
IRS Collection and CI treat payroll noncompliance as a top priority. Contact our dual-licensed Tax Attorneys and CPAs when you see:
- TFRP investigations or Form 4180 interviews; we defend or defuse personal exposure and implement compliant, sustainable deposit plans.
- ERC clean-ups and promoter-driven filings; we audit the eligibility file under privilege, unwind ineligible claims, and negotiate penalty outcomes without inviting CI.
- Worker classification disputes; we argue §530 safe harbor where available and align federal positions with California’s Borello/AB-5 structure.
Collections: Keeping Your Case Civil While the Clock Runs
Once assessed, the government can file liens, issue levies/garnishments, and certify “seriously delinquent” debts for passport action. At the Tax Law Offices of David W. Klasing, we can help you:
- File Collection Due Process (CDP) to pause the levy and move the file to Appeals.
- Structure Installment Agreements (including partial-pay) or secure Currently Not Collectible hardship status.
- Prepare Offers in Compromise when the financials justify settlement.
- Protect the CSED (10-year statute), oppose lawsuits to reduce to judgment, and use lien tools—withdrawal, subordination, discharge—to preserve transactions.
California Parallels and Spillovers (FTB/CDTFA/EDD)
Federal issues rarely live alone. California’s Franchise Tax Board (income/franchise), CDTFA (sales/use), and EDD (payroll) share data with the IRS—and each other. When a federal adjustment appears, the Tax Law Offices of David W. Klasing handles California state’s six-month reporting rules, manages economic-nexus and marketplace-facilitator fallout, and aligns apportionment (market-based sourcing). We also deploy California collection defenses (EWOT wage orders, bank OTWs, lien remedies) so a state action doesn’t blow up a carefully orchestrated federal plan.
Why Choose a dual-licensed IRS Tax Attorney & CPA Instead of Your Original Preparer
Two primary reasons: privilege and advocacy. The so-called “tax practitioner privilege” (§7525) is narrow, does not apply in criminal matters, and is routinely pierced. By retaining an attorney at the outset, you extend protections to accountants through a Kovel arrangement and keep your internal fact-gathering confidential. Second, once an examination moves from arithmetic to law—method changes, penalty standards, jurisdictional deadlines, settlement authority—you need a litigator who speaks the IRS’s language and can move the case to Appeals or Tax Court when that is the leverage point.
Contact the Tax Law Offices of David W. Klasing Today
If the IRS or a California state tax agency (FTB/CDTFA/EDD) is circling—whether a field audit has turned into a high-risk eggshell audit, a payroll case is headed toward a Trust Fund Recovery Penalty, a foreign-account or digital-asset issue is surfacing, or a balance due is drawing liens and levies—call us before anyone answers a government question. At the Tax Law Offices of David W. Klasing, your matter is moved immediately under attorney–client and work-product privilege, with accountants engaged under Kovel where needed. Our dual-licensed Tax Attorneys & CPAs run a privileged, examiner-style risk assessment that mirrors the government’s Required Filing Checks across all open and related years; stabilize the file by controlling IDRs and interviews; reconcile books to bank and information returns; and cure documentation gaps that spawn penalties or a fraud development. Where exposure exists, we quantify it—and then pick the correct forum and sequence: Independent Office of Appeals, U.S. Tax Court (petition filed without prepayment when a 90-day notice issues), targeted penalty abatement on reasonable-cause grounds, installment agreements or Currently Not Collectible status to protect cash flow, an Offer in Compromise when the financials justify settlement, or, where willfulness risk is real, a carefully managed path through the IRS-CI Voluntary Disclosure Practice.
We also coordinate on the state side to ensure a federal move doesn’t trigger a California shock. That means modeling factor-presence nexus and market-based sourcing, filing protective returns to close statutes, using voluntary disclosure to cap look-back and erase penalties where eligible, and neutralizing California state collections (bank OTWs, wage EWOTs, liens, and intercepts) while a global resolution is negotiated. Do not let your original preparer run your audit or speak to Special Agents—communications with non-attorney preparers are generally not privileged and can become evidence. Call 800-681-1295 or contact us online HERE to schedule a reduced-rate, privilege-protected initial consultation. We will deliver a precise, written roadmap—focused on damage control, credible advocacy, and finality—so a solvable civil problem does not become a criminal one.
