We can help you resolve complex tax disputes with the Internal Revenue Service (IRS), approaching each engagement with a strategic plan that will benefit you for the tax year in dispute—and in future tax years. We partner closely with you to understand your business goals and help you efficiently achieve your objectives.
To position you for success at any stage of a dispute, we draw on decades of experience representing people and businesses in IRS audits (including in the IRS’s Compliance Assurance Process), IRS administrative appeals, and litigation in federal trial and appellate courts. While we resolve most tax disputes at the IRS audit and IRS administrative appeals level, when settlement is not possible, we have a successful track record of litigating tax disputes in federal court.
We have resolved numerous matters through the IRS’s alternative dispute resolution procedures, including Industry Issue Resolution, Fast Track Settlement, Early Referral to Appeals, Rapid Appeals Process and Post-Appeals Mediation. We also have substantial experience with international tax disputes and transfer pricing issues, including navigating complex domestic and foreign-initiated competent authority cases (Mutual Agreement Procedure), and seeking and negotiating Advance Pricing Agreements.
When you are under IRS audit, you need a legal team that understands how the IRS thinks and recognizes when the IRS is stepping outside of established rules and procedures. We have developed that understanding through experience advising clients in negotiating and responding to Information Document Requests (IDRs), maintaining privilege, developing audit strategies, and interacting with IRS audit personnel.
Each audit has its own nuances, and our work on your audit may involve behind-the-scenes advice or directly interfacing with the IRS exam team. Our level and manner of involvement is strategic, and we handle each audit as one part of a holistic approach to a federal tax controversy.
Because we spend a significant amount of time advocating for our clients before the IRS Independent Office of Appeals, we know how to settle cases with IRS Appeals—typically by getting creative and “thinking outside the box.” We employ that experience and strategic vision to settle your matter for the best possible outcome.
Federal Tax Litigation
Sometimes the only place you can resolve a complex federal tax matter is in court. We use our substantial experience litigating all types of federal tax matters in court to help you navigate the process and achieve a favorable outcome. Our ability to handle a case from the start of the audit through litigation and court appeal gives us a unique, long-range perspective that benefits you and sets us apart from other tax controversy groups.
We have litigated some of the largest and most complex tax cases in US history, achieving tremendous results in all types of tax matters in federal courts. Our team has litigated dozens of “bet-the-company” cases, tax issues of first impression and complex, technical cases that have resulted in favorable settlements, 100% government concessions and taxpayer court victories. We have also successfully represented our clients in summons enforcement proceedings and disclosure actions, and we have extensive experience challenging the validity of tax regulations and advancing arguments under the Administrative Procedure Act.
We regularly litigate tax matters before the US Tax Court, US Federal District Courts, the US Court of Federal Claims, US Circuit Courts of Appeal and in the US Supreme Court.
Pro Bono Work
Part of our philosophy is to give back to our community, and our team is active in representing low-income taxpayers on a pro bono basis in litigation. We have handled dozens of cases resulting in opinions on issues of first impression on innocent spouse and penalty issues, providing relief to low-income taxpayers nationwide.
IRS Audit: Fast Track Settlement that resolved multi-billion dollar proposed adjustments for several years under Subpart F and complete abatement of 20% accuracy-related penalty in excess of $1 billion.
IRS Audit: Obtained “no-change” letter after extensive audit regarding inversion, spin-off, and decontrol issues.
IRS Audit: Obtained 100% concession on $250 million adjustment involving dispute over application of Code section 367.
IRS Audit: Successful Fast Track Settlements for multiple corporate taxpayers related to complex financial product issues involving multi-billion dollar proposed adjustments in successive CAP audits.
IRS Audit: Successfully settled disputes over clean coal transactions.
IRS Appeal: Obtained 95% IRS concession on Code section 162(f) issue related to claimed deductions of several hundred million dollars
IRS Appeal: Obtained “no-change” letter on Code section 199 issue involving IRS “campaign” issue on qualified films involving multichannel video programming distributors and television broadcasters
IRS Appeal: Obtained favorable settlements on renewable energy credits and bonus depreciation
IRS Appeal: Obtained favorable settlement on basis issues related to corporate distributions
Federal Tax Litigation: Home Concrete & Supply: Taxpayer win before the U.S. Supreme Court on statute of limitations issue with aggregate tax at issue of more than $1 billion
Federal Tax Litigation: Illinois Tool Works, Inc. – Taxpayer win in Tax Court making new law and holding that a distribution received from a foreign subsidiary was a nontaxable return of capital
Federal Tax Litigation: Ralphs Grocery Co., – Taxpayer win in Tax Court respecting a Code section 338(h)(10) election, resulting in basis step-up and allowance of several hundred million dollars of deductions
Federal Tax Litigation: ExxonMobil Asia Pacific Pte. Ltd. – Taxpayer win in the largest tax case in American Samoa history in which the High Court held that the taxpayer had no tax liability because it was not engaged in a trade or business in the country
Federal Tax Litigation: John Hancock Life Ins. Co. – Partial taxpayer win in Tax Court case involving SILO and LILO transactions and OID issue
Federal Tax Litigation: Capital One Financial Corp. – Taxpayer win in Tax Court making new law on whether credit card interchange income earned by taxpayer was OID; IRS subsequently issued guidance agreeing to drop the issue for the entire industry
Federal Tax Litigation: Representing multiple taxpayers in Tax Court and the Court of Federal Claims regarding Code section 199 issues
Federal Tax Litigation: Representing multiple taxpayers in Tax Court and district court on multi-billion industry issue regarding whether fuel blender’s credits that are used to reduce excise tax liability must be included in taxable income