When You Need a Tax Litigation Firm Instead of a Commercial Litigation Firm

Running a business brings with it a fair number of risks. You risk loss and failure every day if the market turns or you make the wrong decisions. You risk liability if employees or customers are hurt on your property or if you make manufacturing mistakes that result in injury. And, perhaps the thing that comes to mind most often, you risk being sued by everyone from your customers to your business partners for any number of reasons.

Tax obligations can be some of the most complicated issues you deal with as a business owner. You should have accountants and tax lawyers helping you understand your legal obligations and helping you to file the appropriate forms and pay the appropriate taxes. Yet, there may be times that you get the wrong advice or that you act outside the advice of professional counsel and you end up on the wrong side of the law.

When it comes time to defend yourself against AZ litigation, will you need a PHX commercial litigation firm or a tax litigation firm near Scottsdale? The answer is a simple one: Does the litigation center around your tax obligation or around other business interests? If you are facing off against the government over a tax issue, you will need a Phoenix tax litigation firm. If you are suing a business partner because he or she didn’t pay the share of taxes, you would likely need a Gilbert commercial litigation firm – as you would for any other business matter.

Tax Litigation Firm Vs Commercial Litigation Firm

Here are a few times that you might have need of hiring a tax litigation firm:

The IRS Challenges Your Business Deductions

Deductions can help you reduce your tax responsibility, and you can take deductions for everything from the donations you make to local charities to the phones you give to your remote workers. But some deductions can fall into a gray area, and you and the IRS might have a disagreement about whether they are allowable. Unfortunately, you can’t always resolve these issues with a simple conversation. The IRS may stick to its guns, and you may find yourself arguing the matter in court.

A tax litigation firm can fight for your interests in court, calling upon evidence and arguing finer points of tax law to show why you were in the right and do not owe the large amount the IRS is saying that you do. Your tax attorney could also find other deductions or tax savings in the process of auditing your past returns and litigating your case, saving you potentially even more than the amount the IRS is trying to take.

The IRS Recasts a Tax Loss as a Stock Redemption or Other Item

In the course of doing business, you are bound to have some losses. You may have to dissolve a partnership or even close off a branch or some segment of your business. When you do so, you may decide to write off some of that loss as a disposition or some other classification. Yet the IRS may argue that you should have claimed the loss as a stock redemption or some other classification.

Again, this is where a tax litigation firm can help. These are complex issues of tax law, and just because the IRS has made a ruling doesn’t mean that it’s correct. Your tax attorney will argue for how the law is in your favor and show that the loss lowered your tax obligation.

The IRS Audits Your Past Returns and Says You Owe a Large Amount in Back Taxes

You can be audited by the IRS at any time, and it rarely ends up in your favor. Businesses are likely to hear that they owe a lot more money than the average individual, and that makes the stakes even higher. You can’t trust that you’ll be able to resolve these issues with a simple chat, though some AZ tax attorneys can work wonders through negotiation.

A tax litigation firm near Mesa can help you fight the tax bill in court. You may not come out of the case owing nothing (though it is possible), but you can at least minimize the amount you owe.

There are many times that you’ll need a commercial litigation firm near Scottsdale in the course of doing business, such as when you need to sue business partners who don’t fulfill their obligations or when you are engaged in a hostile takeover. But any time that you are fighting the IRS over a tax debt or some matter of tax law, you’ll need a professional tax litigation firm on your side.

The attorneys at Denton Peterson PC can help if you need a commercial litigation firm. We help businesses with issues like mergers and acquisitions, franchise disputes, employment issues, and much more. Call to talk with an experienced business litigation attorney to discuss your case and explore your legal options.


Written By:

Denton Peterson, PC

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-325-9900

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