Awards & Recognition
The Tax Offices of David W. Klasing
Phoenix Tax Litigation Attorney
Dealing with tax litigation requires precise expertise and a comprehensive understanding of tax laws’ complex, technical landscape. A single misstep could lead to the loss of vital rights and privileges or the imposition of stringent fines, penalties, and interest charges. At the Tax Law Offices of David W. Klasing in Phoenix Arizona, we are committed to ensuring that doesn’t happen.
Tax litigation encompasses various issues, from civil to potential latent criminal tax matters. Cases can be presented before various judicial bodies, including the U.S. Tax Court, U.S. District Court, or U.S. Bankruptcy Court. Such disputes often arise when a taxing authority asserts the need for tax payment while the taxpayer or a company disputes this claim. Conversely, a tax controversy can also stem from situations where taxpayers believe they are entitled to a refund.
In these instances, having skilled representation is crucial. At the Law Offices of David W. Klasing in Phoenix Arizona, we offer our deep understanding of tax laws and financial regulations to help guide you through these complex disputes. Our team thoroughly analyzes your case, including an in-depth examination of your tax returns and other financial records, to determine the best action. Whether confronting an IRS tax audit or negotiating a notice of deficiency, we’re here to provide the focused guidance you need.
As the fifth-largest city in the United States, Phoenix has a diverse and growing economy. Its vibrant mix of industries makes it a city with a complex federal tax landscape, which can result in challenging tax litigation cases. Within this context, the expertise and qualifications of your tax litigation attorney matter significantly.
David W. Klasing is a standout tax professional in Phoenix and across the nation. Among an estimated 3,000 professionals nationwide, he possesses a law degree, is a licensed CPA, and holds a master’s degree in taxation. This combination of credentials equips him with a unique understanding of the interplay between tax law and accounting, making him an exceptional asset in tax litigation.
Being one of the approximately 24,000 professionals across the United States with both a law degree and a CPA license, David W. Klasing’s multifaceted expertise places him in a unique position to offer comprehensive tax litigation services. Our Phoenix-based Tax Litigation Lawyers & CPAs are dually licensed and possess the knowledge and skills to navigate the intricacies of tax litigation. We strive to provide our clients with the best possible outcomes by leveraging our legal and financial expertise within the dynamic Phoenix economy. Trust us to guide you successfully through your tax litigation process.
A Closer Look at Tax Deficiency Disputes and Refund Litigation
Tax deficiency disputes and tax refund litigation are the two most common tax litigation cases. Tax deficiency disputes commonly emerge when an authority, such as the IRS, following an audit, declares that a taxpayer’s owed amount surpasses what was initially reported on their individual or business tax returns. This scenario usually unfolds when, at the end of an unresolved audit, the IRS suspects underreported income, overstated deductions, or unjustly claimed credits.
How Can I Challenge a Tax Deficiency Dispute?
If taxpayers disagree with the IRS audit findings, they can challenge the claimed deficiency. This can be accomplished through an expedited appeals process or by filing a lawsuit in Tax Court.
The expedited appeals process involves the original auditor, their manager, and an appeals officer. However, this pathway may not be the most effective resolution method, as the auditor and their manager are usually invested in the audit results, creating an unequal balance of power.
Alternatively, the normal appeals process, achieved by filing a tax court petition, offers a more unbiased review of the taxpayer’s case. In this process, uninvolved in the initial audit, an appeals officer independently reviews the taxpayer’s arguments and supporting evidence. The aim is to reach a resolution considering potential litigation risks the IRS could face with the client’s fact pattern. If this process doesn’t lead to a resolution, the taxpayer gets a second opportunity to settle with IRS Chief Counsel’s office on the court house steps right before a trial.
What Does Filing a Lawsuit in Tax Court Involve?
When taxpayers file a lawsuit in Tax Court, they must prepare a complaint articulating their legal arguments and supporting evidence. The case then moves to an appeal and to chief counsel’s office before trial. During the trial, the taxpayer and their attorney must present their arguments and evidence to the judge. The judge will then issue a decision, which may be appealed to a higher court if necessary.
Note: the IRS typically settles 98% of cases out of court. Utilizing this to our benefit, our firm has never had to step foot in tax court, saving our clients from bearing the costs of formal litigation, primarily when we assess from the outset that the facts and law are in our client’s favor.
What If the IRS Turns Down My Refund Claim?
Tax Refund Litigation: There are instances when taxpayers might need to litigate over tax refund disputes, mainly if they are convinced, they are entitled to a refund of taxes they’ve already paid. Navigating tax refund litigation can be tricky, entangling complexities like the statute of limitations for submitting a claim or understanding intricate tax laws. If the IRS turns down a taxpayer’s refund claim, the taxpayer can contest this decision through an appeals process.
This process provides an independent review of the taxpayer’s case, carried out by an appeals officer not involved in the original decision. The officer will evaluate the taxpayer’s arguments and evidence to find a resolution.
Suppose the appeals process doesn’t lead to a resolution. In that case, the taxpayer can file a lawsuit against the IRS in a federal district court or the United States Court of Federal Claims to challenge the refund denial. This litigation process may encompass pre-trial proceedings such as discovery and a trial during which the taxpayer and their attorney must present their arguments and evidence to the judge. Like in deficiency disputes, the judge’s decision post-trial can be appealed to a higher court if required.
How Can We Help with Your Tax Deficiency Disputes and Tax Refund Litigation?
In Phoenix, at the Tax Law Offices of David W. Klasing, our Dual Licensed Tax Litigation Attorneys & CPAs are equipped with the requisite experience to represent taxpayers in tax deficiency disputes and tax refund litigation. We leverage our in-depth understanding of tax law and the litigation process to ensure the best possible outcomes for our clients in their tax litigation cases. The IRS typically settles 98% of cases out of court, indicating that in most situations, both the taxpayer and the IRS can find a mutually agreeable resolution outside the court, thus avoiding the considerable expense of actual litigation. However, if litigation becomes unavoidable, our seasoned tax litigation attorneys will fight tenaciously for you, relentlessly striving to achieve the best possible result.
We adopt a strategic approach to tax litigation, focusing on resolving disputes as efficiently and cost-effectively as possible. It is a point of pride for us that we have never had to step foot in Tax Court, saving our clients from the heaviest financial burden of tax litigation. We firmly believe in the advantage of resolving disputes through alternative means whenever feasible. We have a strong track record of successfully negotiating settlements with the IRS and other tax agencies. Our commitment to delivering personalized and effective representation to our clients sets us apart in the industry.
Evaluating Whether Tax Litigation is the Right Path for You
Facing a tax dispute requires a careful assessment to decide if tax litigation is the most suitable action for your particular situation. Understanding the tax litigation process and thoroughly weighing the potential advantages and downsides can be crucial.
What Are Some Common Scenarios for Tax Litigation?
Common tax litigation scenarios are as follows:
- If you’ve exhausted all administrative remedies without an agreeable resolution, litigation remains the last recourse to address the tax dispute;
- If tax authorities have incorrectly applied the law or misconstrued the facts, you may have a solid legal argument to defend your case;
- If the financial stakes are significant and the potential benefits of litigation justify the associated costs and risks;
- When you want to question the fairness or constitutionality of a specific tax policy or regulation adversely affecting you;
- If there’s a need for judicial clarification due to conflicting tax laws or regulations, resulting in uncertainties in their proper application or interpretation;
- When you want to dispute unjust or disproportionate penalties or other enforcement actions imposed by the tax authorities.
What are the Potential Benefits of Tax Litigation?
Before embarking on tax litigation, weighing this legal process’s possible advantages and drawbacks is crucial. Benefits of tax litigation include:
- An opportunity to challenge and rectify erroneous tax assessments or decisions made by tax authorities;
- The potential to recover significant overpaid taxes, reducing your financial burden;
- Setting legal precedents that can benefit other taxpayers dealing with similar tax disputes;
- Protecting your rights as a taxpayer by addressing and resolving disputes stemming from unfair or unjust tax enforcement actions;
- Skilled tax litigation attorneys can negotiate settlements or payment plans, potentially reducing penalties and interest charges.
Before resorting to tax litigation, exploring alternative dispute resolution options like internal appeals is crucial. These methods can be less adversarial, less expensive, and often quicker than litigation. If these avenues provide a satisfactory resolution, they may be more beneficial than a potentially lengthy and costly court battle.
Audits entail a comprehensive examination of your tax returns and financial records by the tax authority. If any discrepancies or issues arise, we can help resolve them through negotiations with the relevant tax agency.
Why Should I Choose Your Firm for My Tax Litigation Needs?
While many general litigation firms may offer high-quality representation, they often lack detailed knowledge of tax law and procedures for handling complex tax disputes. Our team has consistently been recognized as a leading tax law firm in the nation, reflected in our numerous awards, rankings, and frequent features in the media. We take pride in our leadership roles in the field, showcasing our deep authority and expertise. Our esteemed managing Attorney-CPA, David W. Klasing, who holds a Master’s in Tax, has an impressive track record of leadership positions. He has served as the Past Chair of the OCBA Tax Committee, the Past Chair of the California Bar Tax Procedure and Litigation Committee, and the Past Education Chair of the American Society of Attorney-CPAs, further attesting to our firm’s expertise and influence.
How Are You Prioritizing Client Needs?
We always put our clients’ needs first and are committed to delivering high-quality, cost-effective service. To make our services as accessible as possible, we are introducing a new scheduling feature. Now, you can hire us for a four-hour slot, and David W. Klasing, our head and an instrument-rated private pilot, will personally travel in the firm’s fast and efficient Cirrus SR22 to any of our satellite offices to meet with you. We have designed this service to benefit our clients, with no additional travel expenses added to your bill.
What Can I Expect from Your Satellite Offices?
These satellite offices are conference room access only and are available by appointment only, which ensures that your scheduled time is dedicated solely to addressing your concerns. While no permanent staff is on-site, this arrangement ensures you receive direct, undistracted attention during your appointment.
David uses an efficient and speedy Cirrus SR22 for his travels, making it possible to meet clients across various locations swiftly. This efficient use of time and resources is another way to ensure you get the value and convenience you deserve.
Please take advantage of this dedicated service by calling us at 800-681-1295 or filling out our contact form today. We are here to make your experience with tax litigation as smooth and beneficial as possible.
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