New York Tax Attorney | David W. Klasing

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In the fast-paced financial hub of New York, navigating the complex web of federal tax laws requires acute expertise. Here, where commerce thrives, and the IRS vigilantly watches, an experienced strategic ally is paramount. New York’s unique economic landscape presents distinct federal tax challenges, demanding a legal partner well-versed in the city’s pulse and the intricate federal tax system. Whether you’re grappling with the consequences of unfiled taxes, bracing for an imminent IRS tax audit, or deciphering complex federal tax regulations, the importance of a proficient ally in the city that never sleeps cannot be overstated.

Our dual-licensed New York Tax Audit Attorneys and CPAs specialize in confronting these sophisticated tax dilemmas. In the appropriate circumstances, We accurately manage what amounts to the preparation of amended returns, which signify our optimal settlement position, and represent you in intricate IRS Office, Field, and Correspondence audits, putting your interests first to ensure minimal risk and customized solutions. With nearly three decades of combined tax and legal experience, our award-winning team is a trusted pillar in the New York tax community. Our federal tax audit practice areas include (but are not limited to) the following:

Facing a Federal Tax Audit in New York?

Receiving a notification of a federal tax audit from the IRS can send shivers down the spine of even the most seasoned New Yorker. If not navigated correctly, such an audit can, at best, lead to severe assessments of additional federal tax penalties & interest, to at worst, exponentially severe criminal tax charges. The looming threat of these consequences can strip you of your peace of mind, casting a shadow over your daily life and aspirations.

An IRS tax audit is a thorough review of an individual’s or organization’s federal tax returns to ensure the accuracy of the reported financial information. With over 230 million tax returns filed yearly, the IRS employs sophisticated computerized statistical protocols to identify potential discrepancies in federal tax returns. This system cross-references the information submitted by taxpayers with data provided by third parties, such as financial institutions, individuals, and businesses. If a taxpayer’s return is flagged due to these irregularities or other reasons, the IRS decides whether a more in-depth federal tax audit is warranted.

Depending on the specifics of the submitted federal tax information, a taxpayer might receive a notice indicating that an IRS agent wishes to delve deeper into certain records. For instance, any signs of unreported revenue would quickly draw the scrutiny of an IRS examiner, potentially leading to a more comprehensive tax audit or a covert CID investigation, potentially leading to stringent civil and criminal tax penalties.

Why Might You Be Audited?

Statistical Analysis: Every federal tax return undergoes a computerized statistical analysis by the IRS. Returns are scored based on their likelihood of understating taxable income. The higher the score, the more likely the return is to be audited;
Mismatched Information: Tax returns are cross-referenced with third-party information, such as W2, 1099 forms, etc. Discrepancies between your tax return and this data can trigger an IRS tax audit;
Lifestyle and Income Discrepancies: A noticeable disparity between your reported income and financial spending habits, like large charitable donations, can raise IRS suspicions. Paying off huge debts with deficient historical reporting of income is also a red flag which ordinarily leads to a high-risk IRS eggshell or reverse egg audit;
Business Reporting Anomalies: Continuous reports of business losses or sudden downturns in business performance can draw IRS attention. Multiple years of reported business losses might also trigger an IRS tax audit;
Clerical Errors: Simple errors, like transposing numbers or adding/omitting zeros, can lead to discrepancies in your federal tax return and result in an IRS tax audit.

Note: Being represented will make all the difference between facing criminal tax prosecution and paying 75% fraud penalties versus a civil resolution with, at most, 20% negligence penalties that are statutorily required if you owe $5,000 or more in tax following your federal tax audit. At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Audit Attorneys and CPAs possess the expertise to address statistical anomalies, reconcile mismatched information, and provide guidance on lifestyle and income disparities. We’re adept at identifying and rectifying business reporting anomalies and clerical errors, ensuring your federal tax affairs align with IRS expectations.

Types of IRS Tax Audits:

Correspondence Audit: The IRS sends a letter requesting specific documents to verify certain details on your federal tax return. It’s often resolved by mailing the requested information to the IRS agent. If you lack the necessary records to validate the transactions in question, or if there were significant errors or intentional misrepresentations in your federal tax return, it would be wise to seek professional representation urgently. Our adept dual-licensed New York Tax Attorneys and CPAs will strive to ensure that the audit remains a financial matter and doesn’t escalate into an exponentially severe criminal tax prosecution;
Office Audit: An on-site IRS office audit is a meticulous process where the agent conducts an in-depth interview, rigorously assessing the positions taken on your federal tax returns and your ability to substantiate them. Every deposit in both personal and business accounts you oversee is deemed taxable income unless demonstrated otherwise. Similarly, any deduction claimed is considered a nondeductible personal expense unless justified. You will face civil penalties and even potential criminal tax exposure if you cannot prove that your tax return was correct or convince the auditor that any substantial mistakes you made were in good faith, not Badges of Fraud. At The Tax Law Offices of David W. Klasing, we have a proven track record of providing successful audit representation for many types of industries, entity types, estates, trusts, businesses, and individuals in office audits all over the nation and are indispensable in getting you safely through a high-risk Eggshell or Reverse Eggshell, Office Audit;
Field Audit: An IRS field audit is an expansive, meticulous, and notably high-risk examination. In such audits, the assigned IRS agent might request to tour your business or home, delving into potentially every detail on your personal or business tax returns. Given the profound scrutiny of field audits, it’s imperative to have adept representation. Engaging with the Tax Law Offices of David W. Klasing in New York provides you with the guidance of our dual-licensed Tax Attorneys and CPAs, ensuring your financial well-being and personal liberties remain safeguarded.

What Happens at The End of an IRS Tax Audit?

After a federal tax audit concludes, the IRS will present its findings in a detailed report. This report will outline proposed changes, potential tax penalties, and any interest due. It often references the Internal Revenue Code and other authoritative sources to substantiate these proposed changes. In some instances, they may deem the tax return accurate, leading to no changes or, on rare occasions, a refund. However, if significant indications of fraud are detected, the case might escalate to the IRS’s criminal investigation division (CID), consequently leading to highly worrisome criminal tax prosecution.

If faced with an IRS audit report, it’s crucial not to make hasty decisions under pressure. We strongly advise against signing documents you don’t fully comprehend, believe to be unfair, or deem incorrect. Always take the time to consult with knowledgeable counsel to review the proposed changes thoroughly. Remember, the initial report isn’t always the final word. Federal Tax law is intricate, and interpretations can vary. Our seasoned dual-licensed Attorneys and CPA will help you decide whether to accept the IRS’s proposed changes or if an appeal or court tax litigation serves your best interests.

New York Tax Litigation Attorney

Criminal Tax Defense Attorney in New York

Our dual-licensed New York Criminal Tax Defense Attorneys & CPAs excel at representing clients in high-risk IRS tax audits, especially when the taxpayer has a history of blatantly cheating on their federal tax returns and is now under audit and thus fear criminal tax prosecution. We have never had an audit client criminally prosecuted for tax crimes. Amidst the IRS’s ramped-up enforcement and a noted increase in criminal tax referrals, the peril of facing criminal tax prosecution has never been more pronounced. When facing a federal tax audit from agencies like the IRS, certain red flags, such as destroyed records, intentionally underreported income, or unfiled returns, can intensify their examination. If an IRS auditor detects badges of fraud and thus suspects tax evasion, the case can be referred to the often clandestine Criminal Investigation Division of the IRS (IRS-CI).

Representing taxpayers and entities under the scrutiny of a federal criminal tax investigation demands specialized knowledge, rigorous training, and a deep understanding of the IRS’s internal investigative processes. The Tax Law Offices of David W. Klasing has a distinguished track record of success in defending against such high-stakes inquiries. While some may assume little can be done before an official indictment, our experience shows that early intervention is critical. Our New York Criminal Tax Defense Attorneys & CPAs, equipped with comprehensive federal tax law expertise and insight into the IRS’s mechanisms, strive to resolve criminal tax investigations, eggshell audits, or reverse eggshell audits promptly, aiming to avert criminal tax prosecution and the potentially devastating fallout of public indictment. Engaging our services at the onset of a high-risk audit / criminal tax investigation maximizes the possibility of a favorable outcome without escalating criminal tax charges. We excel in:

Dealing with Federal Litigation/Tax Controversy in New York?

We understand the intricate dynamics of federal tax litigation in New York’s demanding financial environment. Our seasoned dual-licensed New York Tax Litigation Attorneys and CPAs specialize in various services, including navigating sensitive (eggshell) audits, ensuring tax compliance, and advising on reporting positions. Our clients benefit from our strategic handling of disputes related to employment tax, estate, and gift tax, cases involving unreported income, and allegations of civil tax fraud. We meticulously assess litigation risks where latent criminal tax issues may exist to secure resolutions as soon as possible, drawing upon our deep understanding of the procedural rules and substantive issues at play. To date, we have never lost in tax court. We won’t take your case if we don’t believe we’ll win. The IRS’s 98% settlement rate is why we’ve never stepped foot in tax court, sparing our clients the most expensive part of tax litigation.

Our areas of representation extend to rigorously contesting negligence, accuracy, and all other tax penalties, managing complex offshore tax issues and non-compliance and guiding through domestic and offshore voluntary disclosures and streamlined filings. Tax controversies often arise when a federal tax agency, such as the IRS, believes a tax is owed, and a taxpayer or company disagrees. Conversely, disputes can also emerge when taxpayers believe they are owed a refund. For clients facing heightened scrutiny, we provide robust defense in tax injunctions, tax shelters, promoter investigations, and Office of Professional Responsibility (OPR) inquiries and investigations. With a 98% settlement rate, the IRS typically seeks to avoid tax litigation just as much as you’d want. Throughout the controversial process, from pre-audit preparations to litigation in the courts, our dual-licensed New York Tax Litigation Attorneys and CPAs offer creative problem-solving approaches, controlling the flow of information during audits and presenting persuasive arguments across all stages of tax disputes. We specialize in disputes arising in:

Get Back into Tax Compliance without Facing Criminal Tax Prosecution

Our dual-licensed New York Voluntary Disclosure Attorneys and CPAs provide expert navigation through the IRS Voluntary Disclosure Practice (VDP). This program is essential for individuals who have willfully understated their federal tax liabilities, offering a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution. Our team is committed to facilitating sincere, comprehensive, and prompt disclosures, ensuring proper arrangements to settle outstanding taxes, interests, and penalties. This process effectively serves as a federal tax amnesty for eligible participants.

Additionally, we adeptly manage the intricacies of various voluntary disclosure routes, such as domestic and offshore procedures, streamlined filings, and submissions for delinquent FBARs and international information returns. As long as a taxpayer who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal tax non-compliance through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. We deal with:

New York IRS Appeals Representation

New York Tax Lawyer Suppose you disagree with the IRS tax audit’s conclusion and subsequent recommendations. In that case, you should know you have the right to an appeal and can have our experienced dual-licensed New York IRS Appeals Attorney and CPAs represent you. Appeals are generally available solely based on disagreements about the facts or the law in your audit. You must file a formal written protest within 30 days of receiving Letter 525, detailing your objections, the supporting facts, and relevant laws. Suppose you’re dealing with an IRS tax audit, challenging a tax assessment, or seeking relief from IRS collection actions. In that case, our meticulous approach ensures you’re well-prepared for every step of the appeals process. From handling trust fund recovery penalties to disallowed business expenses, we will ardently fight for you, keeping you informed throughout the process.

If a resolution isn’t reached, you may petition the U.S. Tax Court within 90 days of receiving a Notice of Deficiency. Two key appeal procedures are the Collection Appeals Program (CAP), which is rapid but final, and the Collection Due Process (CDP), which allows for tax court recourse if necessary. With David W. Klasing‘s tax law and accounting expertise, we provide strategic insight to help you make informed decisions regarding your tax appeal. Whether you need to appeal the IRS’s entire decision or specific rulings, we will educate you about your options and guide you toward a favorable resolution. If you’re unsatisfied with audit outcomes, tax penalties, or other IRS decisions, our skilled representation before appeals officers will ensure your records are detailed and organized, positioning you for a favorable outcome in the appeals process. We handle all types of tax appeals and litigation, including trust fund recovery penalties and disallowed business expenses:

Consult Our New York International Tax Attorneys

At the Tax Law Offices of David W. Klasing in New York, our International Tax Attorneys and CPAs provide vigilant representation, adeptly navigating the IRS’s aggressive enforcement of unreported global investment income, offshore businesses & financial accounts. Our team offers strategic guidance for American expatriates and multinational businesses, ensuring compliance while minimizing worldwide tax burdens. David W. Klasing, a dually licensed attorney and CPA, having earned a master’s degree in taxation, leverages his expertise to safeguard your financial interests from the complexities of international tax law, such as FBAR and FATCA compliance, international tax planning, and resolving potential double-taxation. Now is the time to get the seasoned eyes of legal counsel on your international tax filing history to get you back into compliance in a fashion that minimizes additional tax, penalties, and interest and successfully avoids criminal tax prosecution. We are also associated with top international lawyer Marc Schwartz, a dually licensed International Tax Attorney and CPA, which enriches our capability to address the federal and offshore implications of international tax and estate planning and compliance.

In an era where the IRS is intensifying civil and criminal investigations into offshore tax evasion, the support of our team is invaluable. We provide robust entity selection and tax reporting solutions tailored to mitigate transfer pricing penalties and secure optimal tax positions for businesses operating across borders. With our comprehensive understanding of international tax treaties and enforcement efforts, we ensure your strategy is aligned with the current legal landscape, protecting you from the increased likelihood of stringent IRS tax audits and criminal tax investigations. We ensure that international tax reporting obligations are met precisely. We assist foreign-owned U.S. corporations and foreign corporations with U.S. activities in fulfilling their filing requirements and navigating the tax implications of establishing a U.S. presence. Click on the following to learn more:

Addressing Cryptocurrency Taxation Issues in New York?

The increased federal emphasis on cryptocurrency tax compliance has placed tens of thousands of virtual currency users in the IRS’s crosshairs, with a heightened risk of selection for a tax audit or criminal tax investigation. Taxpayers should know that the IRS CAN track cryptocurrency despite misconceptions about anonymity and encryption. It can lead to a high-risk eggshell audit or even a covert criminal tax investigation if not addressed appropriately. The shock is palpable for many when they discover that exchanges of one type of crypto for another are taxable events in the year that they occur, even with no fiat changing hands or that the IRS might have obtained their transaction details from sources like Coinbase. The volatile nature of the crypto market, with its significant highs in 2017 followed by subsequent lows, has left many with substantial tax liabilities, often disproportionate to their current portfolio value.

If you have unreported cryptocurrency accounts or wallets, you should come forward before it’s too late. By voluntarily reporting cryptocurrency transactions accurately, you may be able to avoid or minimize penalties (or prevent yourself from being criminally prosecuted). Work with our experienced New York cryptocurrency tax attorneys for trusted cryptocurrency tax help, including John Doe Summons-related tax audit representation and criminal tax defense representation. The exposure is even more significant for those who’ve ventured offshore with cryptocurrency. However, there’s a silver lining: taxpayers who’ve inadvertently committed tax discrepancies can often self-report through voluntary disclosure, potentially avoiding criminal tax prosecution and benefiting from reduced civil tax penalties. Whether you’re dealing with Bitcoin, Ethereum, Litecoin, or any other virtual currency, call our New York office today at 1 (322) 244-8515 or schedule a reduced-rate initial consultation here, and we will successfully guide you through the record-keeping and reporting procedures required to file the required tax returns. For more information, see the following:

Worried About Civil or Criminal Liability for Unfiled Federal Tax Returns?

The U.S., unique in its citizenship-based taxation, imposes stringent tax reporting and disclosure laws, especially for those holding foreign assets. Non-compliance, failing to file or pay taxes, can result in hefty penalties, with a 5% charge on the outstanding tax bill for each month of delay up to 25%. Moreover, undisclosed foreign accounts, once considered safe havens, now carry substantial risks due to regulations like FATCA and the Bank Secrecy Act’s FBAR. At the Tax Law Offices of David W. Klasing, our New York dual-licensed Unfiled Tax Attorneys, and CPAs stand ready to guide you through these complexities. Whether you’re confronting the repercussions of unfiled tax returns or navigating foreign account disclosures, our expertise ensures compliance and protection/mitigation of potential civil or criminal tax consequences.

For any of your tax planning compliance and controversy needs in New York, contact the Tax Law Offices of David W. Klasing today. Call 1 (322) 244-8515, or contact us online today to schedule a reduced rate initial consultation:

Why Trust the Tax Law Offices of David W. Klasing?

Among the vast sea of attorneys and CPAs in the nation, only a select few can boast dual licensure. Even fewer, a mere 3,000, have the esteemed privilege of having earned a Master’s in Taxation. David W. Klasing, a member of this elite group, brings academic excellence and over three decades of hands-on experience to the table, ensuring that our clients are shielded with the best defense against federal tax challenges.

Our boutique firm, with a satellite office nestled in the heart of New York, is a harmonious blend of award-winning Tax Attorneys and CPAs. With a collective experience spanning over three decades in tax, business law, and accounting, we are equipped to navigate the most convoluted federal tax conundrums. Recognizing the anxiety and stress that interactions with agencies like the IRS can induce, we prioritize transparent, consistent communication to alleviate your concerns and secure the most favorable outcomes. When you entrust us with your federal tax audit challenges, you’re not just hiring a firm but partnering with a dedicated team that will tirelessly champion your cause.

David’s proven proficiency is now available in New York at our appointment-only satellite office, providing both legal and tax services in one place—at a single hourly billing rate. We have just introduced a flexible scheduling option where our clients can reserve a four-hour slot at any of our satellite locations, and David W. Klasing will travel to any of our satellite offices to meet with you personally. We have designed this service to benefit our clients, with no additional travel expenses added to your bill. Call us at 800-681-1295 or complete our online contact form today.

Our New York, NY Office is Conveniently Located at:

14 Wall St, 20th floor,
New York, NY 10005
Telephone: (332) 244-8515

ALL MAIL MUST BE SENT TO THE ORANGE COUNTY OFFICE. 2601 Main St. Penthouse Suite, Irvine, CA 92614

*SEE ABOVE POLICY ON SCHEDULING A MEETING AT ONE OF OUR APPOINTMENT-ONLY SATELLITE LOCATIONS:

Note: This office is by appointment only!

New York City Tax Attorney