OUR AUDIT AND APPEALS EXPERIENCE
Focused Settlement Representation to Avoid Litigation
Most civil tax disputes are settled at the audit or appeals office level, even in cases where it was initially necessary to file a court action.
Our attorneys at Silver Law PLC pursue a strategy to maximize the chance of an early settlement, and yet lay the groundwork for litigating the dispute if the case cannot be resolved at the administrative level.
Our previous audit and appeals work has included:
- Negotiating the settlement of IRS tax claims against Circle K in a Chapter 11 bankruptcy proceeding, which reduced the IRS’s claims for income taxes and backup withholding from in excess of $70 million to less than $12 million.
- Convincing the Arizona Department of Revenue that a former resident’s failure to file nonresident income tax returns reporting Arizona income should not be referred for criminal prosecution, but resolved in a civil proceeding.
- Represented a large megacar dealership in an IRS audit of a return which deducted costs of acquiring the assets of another dealership. The IRS agreed to allocate a major portion of the purchase price to a covenant not to compete, a deductible expense.
- After filing petitions in the United States Tax Court for the shareholders of a large supermarket chain, challenging individual income tax deficiencies and penalties proposed by the IRS as a result of audit adjustments to the corporate returns of C corporations merged into an S corporation, negotiated a favorable settlement with the Appeals Office of the IRS. Principal issues included the tax treatment of additional stock received by the shareholders in the reorganization, accrued compensation due for past services, and shareholder loan accounts.
- Obtaining favorable determinations from the Appeals Office of the IRS in a number of cases where the reasonableness of compensation paid corporate officers was challenged.
- Convincing the Internal Revenue Service, in a number of cases, that corporate officers were not individuals liable for the 100% penalty on taxes withheld from employees by the corporate employer but not paid over to the IRS.
- After appeal to the IRS Director of Practice and Litigation in the United States District Court, convinced the Government to concede preparer penalties asserted against a prominent CPA.
- Obtained a Full Concession by IRS Appeals in a Section 183 Case (Hobby Loss) for a Race-Car Owner Involved in IRL and Cart Racing.
- Obtained a full Concession on Answer by IRS Office of Chief Counsel in a Fraud Case Proposing More than $5 Million in Deficiencies and Penalties.
- Obtained a Full Concession by IRS Appeals, Including a Net Operating Loss of Over $1 Million and a Capital Loss of Approximately $2 Million.
- Mediated before retired United States Tax Court Judge Carolyn Parr a $1.2 million valuation of the “Palo Verde Inn” compound when the IRS originally proposed a zero valuation.
- Cambridge Business Insurance Ltd. for the years 2001,2002 and 2003, was initially granted exempt status as an insurance and reinsurance company. In an Internal Revenue Service audit, its tax exempt status was revoked retroactively. A request for a Technical Advice Memorandum followed requesting its exempt status should be not be revoked retroactively. The TAM issued on January 26, 2015 in PLR 201517018 concluded that although Cambridge was not an insurance company exempt from tax pursuant to section 501(c )(15) Cambridge was entitled to relief under section 7805(b)(15) and as such, was exempt for tax for the years in question.