Orange County Tax Litigation Attorney

When an IRS audit concludes, you do not have to unquestioningly accept the results.  Instead, you have the option to either agree or disagree with the examination’s findings.  If you agree, you can simply sign the appropriate form and pay what you owe in order to complete the process.  But if you disagree, you can appeal the initial decision, and if need be, bring the matter to U.S. Tax Court for additional review.

During both the auditing and Appeals processes, and any subsequent Tax Court litigation which may arise, you have the right to be represented by a qualified tax attorney or CPA — or ideally, a combination attorney-CPA who is familiar with both the legal and financial complexities of tax matters.  David W. Klasing has more than 20 years of experience helping taxpayers to minimize their liabilities while efficiently resolving IRS disputes. To arrange for an initial consultation with an Orange County tax litigation attorney, call our law offices at (800) 681-1295 today.

 

Orange County Tax Litigation AttorneyIs Mediation or Litigation Right for You?

Litigation is an aggressive measure which can be an extremely clear, decisive, and effective method of resolving ongoing IRS disagreements.  However, this process also has the potential to become a costly and time-consuming endeavor.  Therefore, before you opt to select litigation as your legal strategy, you may want to consider the less drastic alternative of mediation instead.

Mediation effectively takes the opposite approach of litigation by encouraging participants to work together toward their own, mutually agreeable solution with the help and guidance of a qualified mediator.  Not only does mediation grant participants a greater degree of personal input, it also tends to be more informal, rapid, and cost-effective than litigating a case.  Another important distinction is that while a judge’s decision is legally binding, a mediation plan is not.

The Appeals Office offers several different mediation options as part of the Alternative Dispute Resolution (ADR) program.  Depending on your classification as a taxpayer, and which stage of the IRS process you have reached, you may be an ideal candidate for:

  • Compliance Assurance Process (CAP) — Pre-Filing stage, available to international and large businesses.
  • Early Referral — Examination stage, available to international and large businesses, small businesses, self-employed taxpayers, and tax exempt and government entities.
  • Fast Track Mediation — Collection stage, available to small businesses and self-employed taxpayers.
  • Fast Track Settlement — See Early Referral guidelines.
  • Post-Appeals Mediation — Appeals stage, available to international and large businesses, small businesses, self-employed taxpayers, and tax exempt and government entities.

 

Challenging an IRS Audit in Tax Court

challenge IRS auditMediation is an ideal solution for some taxpayers, but not all.  However, there are certain steps you must go through before you can bring your dispute to U.S. Tax Court.

If you disagree with the results of an IRS audit, the first step is to hire an experienced Orange County tax litigation attorney to typically to file a formal written protest , which should contain information including but not limited to:

  • A statement that you wish to appeal the examination findings.
  • A list of the proposed items you wish to dispute.
  • The facts and laws which support your argument.

Typically speaking, this written protest must be filed within 30 days of the date on the letter containing the audit’s findings, often called the 30-day letter.  If you cannot reach an agreement through Appeals within that time, or if you simply do not respond, you will then receive the 90-day letter, or Notice of Deficiency.  You then have 90 days in which to petition Tax Court for an external review of the findings.  However, it should be noted that an Appeals Officer will often make an evaluation to determine whether a settlement can provide resolution prior to Tax Court actually hearing the case.

If your dispute involves an amount less than $50,000, including tax, interest, and penalties, you may be eligible to use a special set of simplified court procedures.  However, if you elect to use the simplified process you will lose your ability to appeal any decision rendered by the Tax Court.

If you are engaged in a dispute with the IRS, the experienced litigators at The Tax Law Offices of David W. Klasing can advocate on your behalf to help resolve the issue.  To set up a reduced-rate initial consultation with an Orange County tax litigation attorney, call us at (800) 681-1295, or contact us online today.