Awards & Recognition
In the heart of the Pacific, Honolulu is renowned for its vibrant tourism, real estate development, construction, defense, shipping, and a growing base in technology and professional services. In this economically diverse setting, Hawaii residents and businesses frequently navigate a complex web of federal tax challenges related to diverse income sources and industry-specific activities.
Federal tax litigation is the process for resolving tax disputes with federal taxing authorities when matters cannot be settled administratively. It encompasses civil and criminal tax controversies and can be pursued in the U.S. Tax Court, U.S. District Court, or U.S. Bankruptcy Court. Disputes typically arise when the IRS asserts a liability against an individual or business, and the parties disagree. Mastering the procedural and evidentiary rules is crucial, particularly when intentional or fraudulent filings may involve allegations of criminal tax violations. Both deliberate and inadvertent errors can create significant risk, making a disciplined tax litigation strategy essential.
Introducing The Tax Law Offices of David W. Klasing in Hawaii
In Hawaii’s federal tax litigation arena, the Tax Law Offices of David W. Klasing provides the depth of an extensive practice with the responsiveness of a boutique. Clients receive coordinated representation from professionals who are both Attorneys and CPAs, delivering courtroom advocacy and forensic tax precision within a single team.
At the forefront of our esteemed team is David W. Klasing, a distinguished figure in the realm of tax law, holding dual licenses as an attorney and CPA. His academic and professional journey, culminating in earning a Master’s in Taxation, has positioned him among a select cadre of professionals nationwide, endowed with a prestigious combination of credentials and expertise. His leadership roles, including past chair positions at various California Society of CPAs committees, further underscore his exceptional standing and commitment to federal tax law.
Many tax controversies originate from misunderstandings of the federal tax code and regulations, and can escalate into penalties, liens, levies, or even criminal tax exposure. Under David’s guidance, our dual-licensed Tax Litigation Attorneys and CPAs craft litigation strategies built on facts, law, and procedure, representing clients in Tax Court, District Court, and Bankruptcy Court where appropriate. David’s practice encompasses tax representation, Planning, and Compliance Services, as well as criminal tax defense for businesses and individuals. His professional standing includes an A rating from the Better Business Bureau and a 10.0 AVVO rating.
The vast majority of Tax Court cases are resolved through settlement, which spares clients the exorbitant expense and uncertainty of a federal tax trial. When litigation is the appropriate course of action, we advocate aggressively and strategically. Our history of achieving favorable resolutions, combined with our tailored, client-centered approach, distinguishes our practice. Contact the Tax Law Offices of David W. Klasing 1-(808)-518-2380 or complete our online contact form today.
IRS Tax Litigation: An Overview
When faced with a federal tax dispute, you should conduct a careful assessment to determine whether litigation is warranted. Understanding the stages, risks, timelines, and potential outcomes allows you to make informed decisions.
Common Scenarios Leading to Federal Tax Litigation
- All administrative avenues have been exhausted without a satisfactory resolution, and litigation is the only viable path forward.
- The IRS misapplies the law or misinterprets material facts, creating a strong legal basis to challenge the tax determination at issue.
- The amount at stake justifies the costs and risks of federal tax litigation.
- You need to challenge the legality, fairness, or constitutionality of a policy or regulation.
- Conflicting authority creates uncertainty, and judicial clarification is needed.
- You seek to contest unfair or excessive civil or criminal tax penalties or related enforcement actions.
Potential Benefits of Federal Tax Litigation
- Correct erroneous tax assessments or legal conclusions.
- Recover overpaid tax or reduce asserted liabilities, penalties, and interest.
- Establish favorable legal precedent that benefits similarly situated taxpayers.
- Protect your rights where enforcement actions are unfair or overreaching.
- Enable experienced dual-licensed counsel to negotiate resolutions, structured payments, or penalty reductions.
Before filing a lawsuit, consider alternatives such as the IRS’s Independent Office of Appeals, which Congress codified in the Taxpayer First Act with a mandate to resolve controversies fairly and impartially, while promoting the consistent application of the law. Appeals is structured to resolve disputes without litigation and to enhance public confidence in IRS dispute resolution. At The Tax Law Offices of David W. Klasing, our team routinely pursues Appeals resolutions and other administrative settlements with the IRS, including penalty abatement, installment agreements, and offers in compromise, to save time and cost when litigation is not essential.
If mediation, Appeals, or administrative settlements do not resolve your federal case, and litigation is the necessary next step, our dual-licensed Tax Litigation Attorneys and CPAs are ready to represent you in court and manage every facet of the suit against the IRS. Contact us online HERE to schedule a reduced-rate consultation or call 1-(808)-518-2380.
Practical, Up-to-Date Procedures That Can Affect Your Case
How Field Contacts Begin
The IRS has ended most unannounced revenue officer visits. Revenue officers now schedule meetings using Letter 725-B, which makes your first response and document plan especially important.
Your Appeal Rights During Collection
If a Notice of Federal Tax Lien is filed or a levy is proposed, you generally have a 30-day window to request a Collection Due Process hearing. Timeliness rules and procedures are detailed in the Internal Revenue Manual.
Where to File and What the Costs Are
If you choose litigation, the U.S. Tax Court filing fee is $60, payable online through the Court’s DAWSON system, by mail, or in person; a fee waiver may be available for qualifying petitioners.
Deadlines and Equitable Tolling after Boechler
The U.S. Supreme Court in Boechler, P.C. v. Commissioner of Internal Revenue held that the 30-day deadline to petition the Tax Court for review of a Collection Due Process determination is not jurisdictional and is subject to equitable tolling. Other tax-litigation deadlines remain unsettled across jurisdictions, so strategic deadline analysis is essential.
Why Relying Solely on CPAs, EAs, or CTEC-Certified Preparers for Federal Tax Litigation or Appeals Is Inadvisable
In a federal tax controversy, experienced & qualified tax counsel with a winning track record is critical. CPAs, EAs, and CTEC-certified preparers provide valuable compliance services, but they are not authorized to represent clients in federal court. Attempting to do so can constitute the unauthorized practice of law and risk forfeiting necessary rights and defenses.
Limited Advocacy and Expertise
Even where preparers can represent you in administrative settings, litigation, and high-stakes appeals require skills in evidentiary rules, motion practice, privileges, and criminal tax exposure management. Preparers are typically not trained to litigate criminal tax issues or manage parallel civil and criminal risks that can arise during a dispute.
Lack of Legal Protection and Confidentiality
Communications with preparers are generally not protected by the attorney-client privilege. Those communications can be compelled and used by the government. By contrast, attorney-client and work-product protections apply to communications with your lawyer, and your attorney can engage accountants under a Kovel arrangement so their work supports legal advice under privilege.
Advantages of a Dual-Licensed Attorney-CPA
A dual-licensed Tax Litigation Attorney and CPA can lead strategy, extend Kovel protections to consulting accountants, and balance accuracy with advocacy. Once a dispute turns on legal interpretation, procedure, and evidence, litigation counsel becomes indispensable.
Contact The Tax Law Offices of David W. Klasing Today
David’s proven proficiency is now available in Honolulu, Hawaii, at our appointment-only satellite office, providing both legal and federal tax services in one place—at a single hourly billing rate. We have introduced a flexible scheduling option, allowing our clients to reserve a four-hour slot at any of our satellite locations. David W. Klasing will travel to any of our satellite offices to meet with you personally. This option must be preceded by a one-hour phone or GoToMeeting consultation to warrant incurring the travel expenses and opportunity costs of traveling. We have designed this service to benefit our clients, with no additional travel expenses added to your bill. Call us at 1-(808)-518-2380 or complete our online contact form today.
Our Honolulu, Hawaii Office is conveniently located at:
1003 Bishop Street, Suite 2700
Honolulu, HI 96813
Telephone: 1-(808)-518-2380
