The skills and knowledge required to be a Tax Litigation Attorney are not the same as that needed to be an experienced tax planning attorney. Tax litigation lawyers must be familiar with not only tax laws, but also administrative procedures that govern the day-to-day operations of the Internal Revenue Service. The Internal Revenue Manual is a large document that outlines in detail the daily rules and procedures by which IRS employees should be managed. It is used by tax auditors, IRS revenue agents, IRS appeals officers, and IRS revenue agents.
Our tax litigation lawyers handled a matter in which our client was subject to a penalty of more than $1,000,000. Our client had no reasonable cause to not file his tax returns in time, according to the IRS revenue agent and his supervisor. The Internal Revenue Manual contains a procedure called a “first-time abatement”. Taxpayers who comply with certain guidelines can have their penalties reduced under the FTA procedures. This provision is not found in the usual places. It’s not in the Internal Revenue Code or the Treasury Regulations. This provision is also not found in tax cases decided by either the United States Tax Court or any other federal court that hears tax cases. Our tax controversy lawyers helped us appeal the decision and obtain the abatement for our client.
An understanding of the statutes of limitations is essential for tax litigation attorneys. This can help prevent the IRS from coming after your even if you owe taxes. The statute of limitations for the assessment of tax was three years from the date of filing. However, there were exceptions in cases of tax fraud or significant omission from gross earnings. However, anyone who has omitted income from foreign sources even a small amount may now be subject to a six-year statute of limitations. Even if income from foreign sources is not omitted by the taxpayer, failure to file proper forms and schedules relative to foreign investments could trigger an open-ended statute. A tax litigation attorney can help you identify situations that could make you more vulnerable than the 3-year limit.
This article was written by Alla Tenina. Alla is one of the best bankruptcy attorneys in Los Angeles California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.