San Jose Tax Litigation Attorney
A dispute with a taxing authority often does not have to result in a courtroom battle. Taxpayers can often resolve their tax disputes through alternative methods, such as negotiations, mediation, or administrative appeals. However, there are instances when tax litigation becomes crucial in asserting one's rights and ensuring a fair resolution to a tax dispute. Having an experienced and knowledgeable dual licensed San Jose Tax Litigation & Appeals Attorney & CPA by your side is essential in such situations.
In certain situations where other remedies have been exhausted, tax litigation represents taxpayers' best chance of proving the IRS wrong on the law or facts to avoid an improper tax, penalties, and interest assessment. However, litigation against the IRS is also complex and challenging, demanding a highly effective and experienced dually licensed California Attorney & CPA with an extensive track record of favorable case outcomes.
Tax disputes in San Jose often involve various federal and California tax agencies, each with its own rules, regulations, and procedures. Understanding their roles is essential for effectively addressing tax-related issues. At the federal level, the Internal Revenue Service (IRS) administers and enforces the Internal Revenue Code, governing federal income, employment, and estate taxes, among others. The IRS conducts audits, assesses penalties, and initiates collection actions against non-compliant taxpayers.
In California, the primary state tax agencies are the Franchise Tax Board (FTB), the California Department of Tax and Fee Administration (CDTFA), and the Employment Development Department (EDD). The FTB administers California's income and corporate tax laws, assessing and collecting taxes, conducting audits, and enforcing compliance. The CDTFA oversees various sales, use, excise, and special tax programs, responsible for tax assessment, collection, audits, and enforcement. The EDD administers California's payroll tax system, including unemployment insurance, disability insurance, and employment training taxes.
At the Tax Law Offices of David W. Klasing, we understand that tax disputes can be complex and challenging. Our highly-skilled, dual-licensed Tax Attorneys and CPAs have the substantive knowledge and courtroom experience necessary to develop winning litigation strategies in various forums, including the U.S. Tax Court, the U.S. Court of Federal Claims, Federal District Courts, Bankruptcy Courts, and appellate courts around the country. While most tax disputes can be resolved through agreement or administrative settlement, we recognize that the only path to justice in some instances is through the courtroom. As your dedicated legal advocates, we will tirelessly pursue the best possible resolution for your unique situation, navigating the complexities of federal and California tax agencies on your behalf. Trust the Tax Law Offices of David W. Klasing to provide you with the support, guidance, and representation you need to overcome your tax challenges and secure a favorable result.
Alternatives to Tax Litigation
Tax litigation can be intricate and complicated. A single error could result in the loss of crucial rights and privileges or the imposition of harsh fines, penalties, and interest charges. At the Tax Law Offices of David W. Klasing, we recognize the risks and challenges associated with tax litigation. We can guide you through the process or explore other viable alternatives, such as arbitration or mediation, which may help you reach an administrative settlement with the IRS or state tax officials.
- Mediation: This is a voluntary and confidential process that involves a neutral third party, the mediator, who helps disputing parties reach a mutually agreeable resolution. Mediation can be a cost-effective and flexible alternative to litigation in tax disputes. It is particularly suitable for cases where the parties are willing to cooperate and find common ground—a successful mediation results in nurturing positive relationships, safeguarding confidentiality, and attaining prompt and efficient resolutions.
- IRS Appeals: The IRS Appeals process is a critical alternative to tax litigation, allowing taxpayers to resolve disputes outside the courtroom. This process provides an impartial and independent review of tax issues to settle disagreements fairly and on time. When engaging in the IRS Appeals process, taxpayers present their case to an Appeals Officer not involved in the initial examination or audit. This officer considers the taxpayer's and the IRS's perspectives to reach a balanced resolution. By utilizing the IRS Appeals process, taxpayers can potentially avoid the complexities, costs, and time commitments associated with tax litigation while ensuring that their tax disputes are fairly and thoroughly addressed.
- Administrative Settlements: Sometimes, taxpayers can negotiate directly with tax authorities to reach an administrative settlement. This process involves working with the tax agency to find a mutually acceptable resolution, which may include penalty abatement, payment plans, or an offer in compromise. Administrative settlements can be a viable alternative for those who prefer to avoid the time and expense of litigation.
We leverage our in-depth understanding of tax laws and negotiation strategies to advocate for your interests in mediation or the IRS Appeals process. We aim to secure the best possible result while minimizing costs, stress, and potential risks associated with tax litigation. However, If mediation, IRS appeals, or other methods have failed to resolve your dispute with the Internal Revenue Service, legal action may be the only way to avoid improper penalties and fines. Proudly serving San Jose County, the dual licensed tax litigation Attorneys, and CPAs at the Tax Law Office of David W. Klasing are prepared to advocate fiercely and persistently on your behalf, assisting you with all aspects of your lawsuit against the IRS. Contact us online today to schedule a reduced rate consultation or call the Tax Law Office of David W. Klasing at (805) 617-4566. Note: All consultations in our San Jose office are by appointment only.
Can You Sue the IRS?
You may be able to file a claim against the IRS, but doing so is only advisable, or even possible, under a particular set of circumstances. These circumstances include the following:
- Exhaustion of administrative remedies: You have attempted to resolve the tax dispute through all available administrative channels, such as audits, negotiations, and the IRS Appeals process, without reaching a satisfactory resolution;
- Legal or factual disagreement: The IRS has made an error in interpreting the law or assessing the facts related to your tax situation, leaving you with a solid legal argument to support your position.
- Significant financial stakes: The potential benefits of litigation, such as recovering substantial amounts or setting a legal precedent, outweigh the costs and risks involved.
- Timely claim: You have received a notice of deficiency from the IRS and are filing the claim within the required 90-day period (or 150 days for taxpayers located overseas).
- Full payment of the disputed tax amount: In the case of refund claims, you have already paid the disputed tax amount in full.
- Compliance with filing deadlines: All required tax returns, forms, and supporting documents have been filed within the prescribed deadlines.
It is never advisable to approach IRS tax litigation without guidance from a proven IRS tax litigation attorney whose track record indicates an exceptional command of the legal issues involved. Compared to mediation or even IRS appeals, tax litigation is one of the most strategy-dependent and technically challenging approaches to settling a dispute with the IRS, giving unsupported pro se litigants an extremely poor likelihood of success. Do not take the IRS to Tax Court without a dedicated and competent attorney on your side.
What Types of Claims Can You File Against the IRS?
Most successful lawsuits against the IRS are either deficiency suits or refund claims, as discussed here. In a deficiency suit, the taxpayer is disputing the amount that the IRS claims the taxpayer owes. In a refund claim, the taxpayer attempts to recover compensation for a payment they already made to the IRS.
Bringing a Deficiency Action: Before you may litigate a Tax Court deficiency action, you must receive a "90-day letter" (otherwise known as a "notice of deficiency") from the IRS. Until this occurs, U.S. Tax Court lacks jurisdiction over your case. (For more information about venue and jurisdiction, refer to our article discussing which federal court you should choose to litigate your tax issue.)
Your IRS lawsuit attorney will help you file the initial petition, starting the litigation process. The petition must be filed within 90 days of the date specified by the IRS (or, for taxpayers located overseas, within 150 days of the date determined). Once you have filed your petition, the IRS can file a response called an "answer," providing rebuttals to any arguments you may have raised in your claim.
As is true of all litigation, robust evidence and an accurate understanding of the tax law at issue are critical to the success of your lawsuit. Do not discard any IRS correspondence, tax documents, business records, or records related to loans or business purchases, including emails and electronic records for the period in question.
Bringing a Refund Action: You must have paid the disputed tax amount in full before you may litigate a refund claim in Federal Claims or District Court against the IRS. You must also have met all filing deadlines; otherwise, your case will be dismissed.
In tax refund litigation cases, complexity often arises from issues such as the statute of limitations for filing a claim or the interpretation of tax laws. If the IRS denies a taxpayer's refund claim, an appeals process is available, involving an independent review of the case by an appeals officer not involved in the original decision. The officer will consider the taxpayer's arguments and evidence, attempting to resolve the issue.
Suppose the appeals process fails to resolve the dispute. In that case, the taxpayer may file a lawsuit against the IRS in Federal District Court or the United States Court of Federal Claims to contest the refund denial. This litigation process may involve pre-trial proceedings, such as discovery, and a trial where the taxpayer and their attorney present their arguments and evidence to the judge. After trial, the judge issues a decision, which, like deficiency disputes, may be appealed to a higher court if necessary. Navigating tax refund litigation can be challenging, making having experienced dual-licensed San Jose, CA, tax litigation Attorneys and CPAs by your side essential.
IRS Tax Litigation Lawyers in San Jose, California
At the Tax Law Office of David W. Klasing, we are a team of award-winning litigators and Certified Public Accountants who have earned a reputation for aggressive and dynamic client advocacy. We will fight tirelessly in Tax Court to prove that the IRS erred in assessing tax, penalties, or interest charges against you or that you should be refunded for your overpayment. Our clients receive the exceptional benefits of our comprehensive tax litigation expertise, which rivals that of large firms, while enjoying the personalized attention characteristic of a boutique tax practices. David W. Klasing, a distinguished professional with both Law and CPA licenses, earned a Master's in Tax, placing him among an elite group of professionals in the country with such prestigious credentials and expertise. As a past chair of the California Society of CPAs State Tax Committee, past Vice-Chair of the California Society of CPAs State Education Committee, and past Chair of the California Society of CPAs State Education Committee, his experience and accomplishments further demonstrate his exceptional standing in the field.
Our tax litigation lawyers provide extensive representation to clients in San Jose, CA, and beyond, navigating all phases of tax disputes, including audits and litigation before the U.S. Tax Court, trial courts, and appellate courts. Our practice extends beyond the IRS and federal income tax matters, international tax, state tax audits, multistate audits, and representation before the California Franchise Tax Board, the State Board of Equalization, CDTFA, and the Employment Development Department. We craft detailed and strategic plans to manage audits and achieve successful results, prioritizing settlements whenever possible. However, when administrative hearings or trials become necessary, our team stands ready to defend your rights and strive for the optimal outcome.
To arrange a reduced-rate consultation regarding an IRS dispute, contact us online, or call the Tax Law Office of David W. Klasing at (805) 617-4566 today. Please note that all San Jose tax office meetings must be scheduled in advance.
Tax Litigation FAQs
You should not attempt to sue the IRS without legal guidance from a competent tax professional. The following tax litigation FAQs are not a substitute for legal advice and are intended purely for general informational purposes. Explore the answers to commonly asked questions such as:
- Can You Recover Administrative and Litigation Costs?
- How Does the Audit and Litigation Cycle Work?
- What Discovery Methods Apply in Federal Tax Litigation?
- Who Can Represent a Taxpayer in the Tax Court?
- Who Has the Burden of Proof in Tax Litigation?
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here.
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More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRS tax auditor's findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What ifIdon'ttt respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don't go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
California Sales Tax Questions and Answers
- Common issues encountered during sales tax audit
- What is a sales tax audit?
- Disagreeing with business audit conclusions
- Timeline to file Petition for Redetermination?
- What should Petition for Redetermination contain?
- Is the appeals conference formal or informal?
- Appeals Division's Decision and Recommendation
- Are a mark-up percentage and a profit margin the same?
- Problems with the mark up audit
- Can State Board of Equalization ignore my business records
- What is a sales tax deficiency determination?
- Business being audited for sales tax. Should I be worried?
- Audit determined fraud to avoid sales and use tax
- Definition of "sale" for California Sales Tax
- What do California sellers need to know about sales tax?
- How do I apply for a sellers permit?
- What are my obligations as a permit holder?
- What is sales tax?
- What is tangible personal property?
- What is a sale?
- What are total gross receipts?
- What is use tax?
- Who is responsible for paying the use tax?
- Who is a retailer engaged in business in California?
- Who is a qualified purchaser?
- Do I need a Certificate of Registration Use tax?
- Do I need a Use Tax Direct Payment Permit?
- What types of sales are exempt from sales tax?
- How are Internet Transactions Taxed?
- How is California sales or use tax determined?
- What is the statewide sales and use tax rate?
- Are there other local and district sales and use taxes?
- Total sales and use tax rate calculation
- How to protect against successor liability in California
- Recourse when issued California sales tax liability notice
- CA Sales Tax liability extend to purchasers/successors?
- Waiting Until Audited to Take Action on Tax Matters
- Sales tax records needed in California
- What are California's sales and use taxes?
- Why does the State of California audit businesses to ensure compliance with sales and use taxes?
- How does the State determine whether to audit my business?
- The BOE reviews the purchase invoices of my business
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS's functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn't know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it's minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn't file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I "willfully" failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent's report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime" evasion of assessment" of tax?
- Specific examples of "attempting" to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was "due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegation
Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes