In recent years, the Internal Revenue Service (IRS) has increased its focus on identifying issues in corporate returns and coordinating enforcement actions against anyone it believes is out of compliance. State and local governments are doing the same, resulting in an increase in controversies and litigation.
Given the circumstances, it is vital for you to have a plan if the IRS contacts you. Having the support of a dedicated tax attorney is a crucial first step to take, especially if you have been notified of an investigation. Instead of putting your company at risk by responding on your own, consider discussing your options with a Richmond tax litigation lawyer.
Tax litigation occurs when there are disputes between the federal government and a taxpayer. It could arise when an individual or business disagrees with the IRS or state officials on how much tax is owed. A number of issues or events could ultimately result in legal action over a tax debt, which are known as controversies.
Often, the two sides are able to come to a resolution without the need for formal court proceedings. A resolution could include terms such as the taxpayer agreeing to a payment plan or the government acknowledging that there are no outstanding obligations.
When an amicable resolution becomes impossible, litigation might be unavoidable. The term tax litigation covers a variety of proceedings, both criminal and civil, across different courts. At the federal level, these cases can occur in the U.S. Tax Court, bankruptcy court, or a federal district court. These cases can be heard at the state level as well.
While court proceedings are uncommon, the potential for litigation must be taken seriously. An attorney might be able to resolve a dispute before court intervention becomes necessary, but it is still a good idea to have our Richmond tax litigation attorneys ready to help if you cannot reach an agreement.
Many business owners are convinced that they can resolve an issue with the IRS without outside help—and this is often true. However, there are also situations where the best option is getting help from a Richmond tax litigation attorney. Some examples include:
In general, it is a good idea to talk to a lawyer any time you are notified of an audit. It is especially vital to seek help in cases where the outcome of the audit is unfavorable because, at this point, the chances of litigation are high.
When you are notified that the IRS believes you owe additional taxes or are summoned to appear in U.S. Tax Court, it is time to talk to an attorney. These situations have the potential to escalate quickly.
While some disputes can be handled without the help of an attorney, it is vital to seek out legal counsel immediately after being notified of a criminal investigation. This is very important, as a mistake could lead to enormous fines and even incarceration in a federal prison.
The prospect of defending yourself to the IRS might feel daunting, but litigating disputes often results in a favorable outcome for taxpayers. Having the right team by your side when you go to court is vital. Reach out to a Richmond tax litigation lawyer today to discuss your options.