Tax Attorney in Austin

Awards & Recognition

The Tax Law Offices of David W. Klasing

In Need of an IRS Tax Audit Attorney in Austin?

In Austin, a city known for its bold spirit, residents may occasionally tread close to the edges of federal tax regulations, navigating its complexities with a characteristic fearlessness. In April 2023, the Internal Revenue Service (IRS) unveiled a transformative $80 billion plan to reform its tax enforcement and collection practices, aiming to metamorphose into a “digital first” tax agency. This new plan introduced by the IRS emphasizes a shift towards a more technologically advanced approach, integrating machine-learning technology and data analytics & artificial intelligence to identify federal tax evaders. Such advancements, while promising efficiency, also underscore the importance of meticulous federal tax filings and the potential risks of intentional/inadvertent tax errors.

At The Tax Law Offices of David W. Klasing, we meticulously analyze each client’s financial scenario, sculpting a defense strategy tailored to their needs. Recognizing individual taxpayers’ and businesses’ unique hurdles, we guarantee a comprehensive solution to every IRS tax audit concern. With the IRS amplifying its enforcement actions, mounting a formidable defense becomes indispensable. Our adept team, fortified with extensive IRS tax audit training, knowledge & experience, is proficient in neutralizing IRS maneuvers, presenting facts that optimally defend your interests, striving to curtail assessments of additional federal tax liabilities, and minimizing/avoiding related civil or criminal tax penalties at all costs.

Our dual-licensed Austin Tax Audit Attorneys and CPAs specialize in confronting 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. The complexities are vast, from managing international income to understanding payroll taxes or strategizing business transitions with federal tax implications. With nearly three decades of combined tax and legal experience, our award-winning team is a trusted pillar in the Austin tax community. Our federal tax audit practice areas include (but are not limited to) the following:

• Correspondence Audits
• Field Audits
• Office Audits
• Employment and payroll tax audits
• Foreign Account Audits (FBAR Audits)
• Eggshell and Reverse Eggshell Audits
• Small Business Audits
• Criminal Tax Audits
• Income Earned Overseas
• Bitcoin- and cryptocurrency-related audits
• Tax Audits of Lawyers
• Coinbase User Audits
• Estate and Gift Tax Audits
• Income Tax Evasion Audits
• New Civil and Criminal Tax Enforcement Measures on High-Income Earners
• Audits Resulting from Information Provided by Whistleblowers or Informants
• IRS Wealth Squad Audits
• IRS Hiring Spree Indicating Increased Enforcement
• Income Tax Error Audits
• Concerns Over the Tax Gap
• IRS Tax Evasion Crackdown
• U.S. Government Plans for Collecting Taxes and Closing the Tax Gap

• Tax Evasion and Divorce
• Tax Planning for Non-Citizens
• Criminal Tax Evasion vs. Civil Tax Fraud
• Surviving a Federal Tax Audit
• Tax Avoidance and Evasion
• Tax Fraud Scheme
• Filing Back Taxes & Failure to File
• Business and corporate tax audits
• Excise Tax Audits
• Industry-specific Audits:
  • Car Dealership Audits
  • Dentist Audits
  • Veterinarian Audits
  • Attorney / Legal Industry Audits
  • Doctor’s / Medical Industry Audits
  • Real Estate Professional Audits
  • Audits of Cash Intensive Businesses (Liquor Stores, Bars, Restaurants, Laundromats)
• FBAR audits (Foreign Bank Account Reporting)
• Foreign Account Tax Compliance Act (FATCA) and international tax issues
• Non-Filer Compliance Issues

Looking for a Criminal Tax Defense Attorney in Austin?

Austin, a beacon of technological prowess and cultural vibrancy, remains intertwined with the complexities of federal tax regulations. Many residents and burgeoning businesses navigate the labyrinthine of federal tax rules as the city thrives, often underestimating the inherent risks. Facing a federal tax audit is not just a procedural challenge; it’s a critical juncture that, if mishandled, can escalate into a full-blown criminal tax investigation, leading to exponentially severe criminal tax prosecution. This is especially so when taxpayers have a history of blatantly cheating on their federal tax returns and are now under audit. Furthermore, a mere oversight can quickly transition a routine federal tax audit to a potentially catastrophic criminal tax investigation.

The Internal Revenue Service (IRS) routinely uses multiple civil and criminal tax enforcement avenues to identify perpetually delinquent/fraudulent taxpayers, collect taxes it deems owed & simultaneously create a deterrent to others through highly publicized criminal tax prosecutions. Typically, auditors and collection officers notify the subjects of their audits/collection actions. On the other hand, IRS criminal tax investigators will complete their investigation as secretly as possible and then perform unannounced visits to preserve the element of surprise. They will ask many questions they already know the answers to document the taxpayer trying to lie their way out of trouble. Unfortunately, lying to a federal officer is an additional felony in and of itself.

If you are the subject of an IRS audit that could also be a clandestine criminal tax investigation, engaging with our Austin dual-licensed criminal tax defense Attorneys and CPAs as soon as possible would be wise. Our expertise in federal tax law and deep insights into the IRS’s often opaque investigative procedures can be the linchpin in preventing an audit from spiraling into a criminal tax investigation. Austin’s unique blend of tradition and innovation doesn’t exempt its residents from the unwavering rigor of federal tax responsibilities. From understanding the intricacies of IRS tax audits to identifying the triggers that catch the IRS’s Criminal Investigation Division’s attention, being well-versed is not just recommended—it’s necessary. Seek help from our experienced Dual-Licensed Civil and Criminal Tax Defense Lawyers & CPAs by calling the Tax Law Offices of David W. Klasing at (512)-828-6646 or click here to schedule a reduced rate initial consultation. We excel in:

• Eggshell Tax Audit Defense
• Reverse Eggshell Tax Audit
• Criminal Tax Investigation
• Intentional/Fraudulent Federal Tax Evasion
• Tax Crime Indictment and Prosecution
• Tax Fraud Whistleblower Defense
• Willful Failure to File Tax Returns
• Increased Tax Fraud Referrals to IRS-CI
• Maintaining inadequate records or destroying records
• Providing implausible or inconsistent explanations during civil examination
• Displaying belligerent, rude, or disrespectful behavior to an IRS agent
• Claiming Fake Dependents
• Arranging affairs for the sole purpose of tax avoidance in a manner that lacks economic substance
• Dubious conservation easement deductions

• Fraudulent Withholding or False Statements
• Handling IRS Criminal Investigation Division (CID) Inquiries
• Business and Employment Tax Fraud
• Representation in Cases of Alleged Tax Fraud Schemes
• Hobby Business and Taxes
• Tax Preparer Liability
• IRS Renewed Focus on Criminal Tax Defense
• Overstating deductions or claiming false deductions
• Hiding or transferring income with relatives or related entities
• Keeping false records of your income or “second set of books”
• Falsifying books or records “forgery”
• Prematurely destroying records

Dealing with Federal Litigation/Tax Controversy in Austin?

At the Tax Law Offices of David W. Klasing, our dual-licensed Austin Tax Litigation Attorneys and CPAs are adept at handling complex federal IRS tax disputes. We have maintained a record of never losing in federal tax court and only take cases we believe we will win. By filing a tax court petition, you will significantly improve your situation, especially when tax penalties and interest reduction substantially exceed litigation costs. Our approach involves two stages: first, with appeals, and then, we get a second bite at the appley via negotiation with IRS chief counsel which is rarely necessary. To date, we’ve never had to step foot in tax court, thus sparing our clients the most costly aspect of litigation. With the IRS’s 98% settlement rate, actual in court tax litigation is ordinarily avoided, which is advantageous for our clients and the government.

Navigating a dispute with the IRS does not always have to require stepping into the courtroom. Many times, taxpayers and the IRS can find common ground, crafting resolutions without the need for federal tax litigation. However, when faced with federal tax audit results that don’t seem fair, you’re presented with two stark choices: either accept the IRS’s judgment or stand up and defend your rights through federal tax litigation. It’s essential to remember that despite its vast resources, the IRS often misinterprets the facts or the law, leading to additional tax, penalties, and interest being erroneously assessed. If you don’t challenge their determination, you bear the financial consequences of their potential oversights and misunderstandings. So, when you believe the stakes are high and the IRS’s decision is questionable, it’s not just about accepting their verdict or fighting back—it’s about ensuring fairness and justice in a system where even the mighty IRS can err.

At the Tax Law Offices of David W. Klasing, we specialize in vigorously contesting negligence, accuracy, and all other tax penalties. We also excel in managing complex offshore tax issues and non-compliance cases while providing expert guidance through domestic and offshore voluntary disclosures and streamlined filings. Whether it’s handling cases of criminal tax exposure, guiding you through a civil tax audit, eggshell audit, reverse eggshell audit, or defending against a criminal tax investigation, the expertise of our seasoned dual-licensed Tax Litigation Attorneys and CPAs in Austin is invaluable. Our dedication to offering personalized and effective representation distinguishes us in the field. We specialize in disputes arising in:

• Tax Deficiency Disputes
• Tax Refund Litigation
• Recovering Administrative and Litigation Costs
• Expedited Appeals Process
• Normal Appeals Process
• Filing a lawsuit in Tax Court
• International Tax Disputes and Offshore Account Compliance
• Employment and Payroll Tax Disputes

• Alternative Dispute Resolution Options
• Audits and Negotiations with Federal Tax Agencies
• Litigation of Estate and Gift Tax Audits
• Collection Due Process Disputes
• Civil and Criminal Tax Litigation
• Partnership Taxation
• Innocent Spouse Relief Litigation
• Tax Litigation Involving Tax Assessments, Penalties, or Enforcement Actions

Get Back into Tax Compliance without Facing Criminal Tax Prosecution

The IRS is using its newfound technological and manpower advantages to take more action against suspected intentional non-compliance (fraud). This is all due to a budget increase from the Biden administration, which mandates tracking down a much more significant portion of the tax debt that goes unpaid every year.

With that in mind, now is a good time for taxpayers to familiarize themselves with the IRS’ voluntary disclosure programs. Through applying and participating in these programs, taxpayers with tax non-compliance in their histories can potentially avoid courtrooms, jail time, and the penalties associated with their past mistakes.

You must hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney-Client Privilege and Work Product Privileges that will prevent the very professional that you hire from potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended in a subsequent criminal tax audit, investigation or prosecution.

Our dual-licensed Austin 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 evasion (potentially including intentionally 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 extensively with:

• Quiet Disclosure
• Noisy Disclosure
• Delinquent International Information Return Submission Procedures
• Department of Justice Tax Division’s Voluntary Disclosure Policy
• Undisclosed Foreign Accounts
• Partnerships and Unincorporated Associations

• Delinquent FBAR
• Streamlined Disclosure
• Streamlined Domestic Offshore Procedures
• Streamlined Foreign Offshore Procedures
• VDP for Partnerships, Government Entities, and Unincorporated Associations
• Offshore Income-generating Assets

Seeking Help with IRS Appeals Representation?

When the auditing process concludes, the IRS will send you a notification letter explaining its findings and any changes proposed to bring you back into compliance. If you agree with these changes, you can simply pay the amount you have been assessed, sign an agreement form, and wash your hands of the matter. However, if you do not agree with the audit’s conclusion and subsequent IRS recommendations, you should know that you have the right to appeal. If you’re dealing with an IRS tax audit, challenging a tax assessment, or seeking relief from IRS collection actions, our experienced dual-licensed Austin IRS Appeals Attorneys and CPAs will fight vigorously for your rights before an appeals officer. With strong advocacy skills as experienced attorneys, we will work to reduce your tax liability and help you avoid litigation.

From handling trust fund recovery penalties to disallowed business expenses, we will ardently fight for you, keeping you informed throughout the process. We will help maximize your chances of making a successful appeal while resolving your federal tax liabilities as efficiently and cost-effectively as possible. We will also assist you in preparing the most vigorous tax court petition possible and will do our utmost to negotiate a favorable compromise on your behalf. At our helm is David W. Klasing, a former public accounting audit manager with nearly three decades of experience in public accounting. With his expertise in both tax law and accounting, 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. We can help you appeal IRS tax audits of federal tax returns or other IRS decisions involving:

• Income Taxes
• Payroll Taxes
• Corporate Taxes
• Estate and Gift Taxes
• Failure to Respond to Notice of Deficiency within 90 Days
• Collection Appeals Program (CAP)
• Collection Due Process (CDP)
• Filing an Appeal vs. proceeding straight to Tax Court
• Sole Proprietorships

• Excise Taxes
• Small Case Request
• Appealing an IRS Collection
  • Installment Agreements
  • Levies
  • Liens
  • Offers in Compromise
  • Seizures
• Agreement with IRS Office of Appeals

Consult Our Austin International Tax Attorneys

At the Tax Law Offices of David W. Klasing in Austin, our International Tax Attorneys and CPAs provide vigilant representation, adeptly navigating the IRS’s aggressive enforcement of unreported yet taxable, global business and investment income and enforcement concerning omitted offshore businesses & financial account information reporting that would have flagged the unreported offshore taxable income.

Our team offers strategic guidance for American expatriates and multinational businesses, ensuring compliance while minimizing worldwide tax burdens. 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.

We serve a diverse clientele, including individual taxpayers, corporate shareholders, partnership members, and entities like corporations, LLCs, and trusts, guiding them through the complexities of regaining compliance with the laws concerning foreign assets and income.

Specializing in the nuances of international tax law, we offer expert guidance on FBAR and FATCA compliance and international tax treaties. Our seasoned dual-licensed Austin International Tax Attorneys and CPAs adeptly structure international business operations for optimal tax efficiency as the IRS intensifies its civil and criminal tax investigations into offshore tax evasion. We advise on entity selection, considering liability, capitalization, and strategic exit planning. We ensure precise compliance with international tax reporting obligations, assisting foreign-owned U.S. corporations and foreign corporations with U.S. activities in meeting their filing requirements and understanding the tax implications of establishing a U.S. presence. Our expertise lets you confidently navigate your international tax responsibilities, minimize double taxation risks, and avoid transfer pricing penalties. Click on the following to learn more:

• Tax Planning for American Expatriates and Businesses
• FATCA (Foreign Account Tax Compliance Act) Compliance
• Corporate Taxes
• International Tax Liability Minimization
• Compliance with IRS Form 5472 for Foreign-Owned U.S. Corporations

• FBAR (Foreign Bank and Financial Accounts Report)
• International Tax Mistake Rectification
• International Business Entity Structuring
• Offshore Income-generating Assets
• Double Taxation Avoidance

Handling Cryptocurrency Taxation Issues in Austin?

As part of its “Operation Hidden Treasure,” the IRS has been intensifying its efforts to monitor and enforce tax compliance on cryptocurrency transactions. The complexity arises mainly due to the perceived anonymity of many crypto wallets, making it challenging to track and tax transactions between unknown parties. To overcome this obstacle, the IRS has effectively utilized John Doe summonses. This legal instrument allows the IRS to petition a federal court to compel exchanges to release user information. Key companies targeted by IRS John Doe summonses include Coinbase, Kraken, Poloniex, and sFOX, marking significant milestones in the IRS’s efforts to regulate the cryptocurrency market.

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 Austin 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 Austin office today at (512)-828-6646 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 necessary tax returns. For more information, see the following:

• Cryptocurrency/Bitcoin tax law 101
• Accuracy-related Penalties as dictated by sections 6662, 6721 and 6722
• Third-party Settlement Organization on a Form 1099-K
• Capital Gains Taxes
• Self-employment tax for Bitcoin mining
• Using Bitcoin to Commit Tax Evasion
• Reporting requirements for virtual currency payments
• Voluntary disclosure for unreported cryptocurrency transactions
• (IRS-CI) Expanding to Target Crypto Users
• Big Data Analytics to Punish Tax Evaders

• Reporting Bitcoin transactions on IRS Form 8949 and Schedule D filing
• 1031 exchanges with digital currencies
• John Doe summons
• Responding to IRS letters on unreported cryptocurrency
• Representation in eggshell audits and criminal tax investigations for cryptocurrency
• International FBAR Lawyers for Bitcoin and Cryptocurrency Tax Issues
• Coinbase User Audits

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 Austin 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 Austin, contact the Tax Law Offices of David W. Klasing today. Call (512)-828-6646, or contact us online today to schedule a reduced rate initial consultation:

• Getting Caught Up on Tax Fillings
• Non-Filer Assistance
• Tax Penalties for Not Filing
• Back Tax Filing Services

• What to do when you Forget to File Taxes
• Tax Settlement Negotiations
• Representation in Non-filer Cases

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!

David’s proven proficiency is now available in Las Vegas at our appointment-only satellite office, providing both legal and federal 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. 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 go-to-meeting 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 (702) 997-6465 or complete our online contact form today.