During the fourth webinar in our Tax Controversy Webinar Series, Shawn O’Brien, Susan Ryba, and Michael Scarduzio of our Tax Controversy & Litigation Group discussed key factors in deciding when to litigate a tax dispute, the differences between deficiency and refund litigation, forum selection considerations, and strategies for achieving settlement.

Top takeaways included:

1. Government shutdowns can significantly disrupt IRS operations and litigation timelines.
   While IRS litigation has largely been prioritized through the shutdown, the examination and appeals functions have experienced notable slowdowns. Taxpayers should remain vigilant about filing deadlines, particularly the 90 – day period for Tax Court petitions, to avoid procedural foot faults.
2. A case’s size, complexity, and settlement posture should guide the decision to litigate.
   Taxpayers should evaluate the amount in dispute, the mix of legal and factual issues, and internal resource constraints before pursuing litigation. Developing a well-prepared case and signaling a readiness to litigate can enhance leverage in IRS settlement negotiations.
3. Selecting the right court is a critical strategic decision that impacts cost, timing, and procedure.
   Tax Court allows taxpayers to dispute deficiencies without prepayment, while refund litigation in District Court or the Court of Federal Claims requires full payment before filing. Differences in discovery, fact-finding, and the availability of jury trials can also influence outcomes.
4. Preparation and case development are essential for effective settlement.
   Well-documented, thoughtfully structured cases not only strengthen the taxpayer’s litigation position but also increase the likelihood of resolving disputes favorably before trial.

Access to the webinar replay is available upon request. Get in touch to learn more.

Looking for more insights on IRS developments, enforcement trends, and practical strategies? Visit our Tax Controversy Webinar Series hub to learn more.