McManimon, Scotland, & Baumann’s Tax Controversy practice is focused on advising and facilitating client interactions with the Internal Revenue Service (“IRS”) at all levels, whether it is engaging with revenue agents during examination, requesting letter rulings or administrative guidance from the IRS National Office, representing clients at the IRS Appeals Office, or litigating cases in the United States Tax Court, United States District Courts, or the Court of Federal Claims. Our engagements cover the full spectrum of substantive tax issues involving income, estate and gift, employment, excise taxes and tax-exempt entities.

We implement creative solutions to our client’s tax problems with careful consideration given to each client’s unique circumstance.  We are results-focused and the results we achieve should come at a cost that our clients consider fair.

Audit/Examination

We counsel clients at every stage of an examination with the IRS and are frequently hired to collaborate with other tax professionals, bankers, financial advisors, and lawyers in order to achieve the best results for our clients.  Our examination services include:

  • Reviewing and responding to information document requests (“IDRs”) or summonses from the IRS;
  • Examination logistics, daily interactions with IRS agents, and handling of sensitive issues;
  • Monitoring the examination, providing procedural guidance to compliance personnel, and responding to legal and sensitive factual questions;
  • Reviewing and counseling clients who have received a Notice of Proposed Deficiency (also known as the “30-Day Letter”), regarding appeal rights and procedure;
  • Requesting technical advice or rulings from the IRS National Office, as necessary; and
  • Negotiating closing agreements and/or other settlements.

We also counsel clients with other issues that may arise from ordinary financial audits or IRS examination such as financial statement disclosure, tax reserve provisions, and tax return treatment going forward.

IRS Appeals Office

If tax issues remain unresolved after an IRS examination, we work diligently with the IRS Appeals Office towards a potential resolution to avoid protracted litigation, by managing communications with the IRS, leading negotiations, arranging taxpayer meetings where appropriate, and preparing tax protest letters.  Our clients have experienced substantial savings through our engagement on their behalf with IRS Appeals.

Litigation

We litigate tax controversies ranging from individual tax liability and collection disputes to complex corporate deficiency and refund litigation. Our litigation services include identifying the proper forum, determining strategy, conducting discovery, litigating the case at trial, and when necessary, filing an appeal.

Undeclared Offshore Bank Accounts and International Tax Compliance

We represent taxpayers in IRS Offshore Voluntary Disclosure Programs (OVDP), the Streamlined Foreign Compliance Procedures, Streamlined Domestic Offshore Compliance Procedures, Delinquent Filing Procedures, and other forms of voluntary disclosures regarding foreign financial accounts. We also help clients determine whether or not an IRS voluntary disclosure program is appropriate and represent taxpayers who have chosen to opt out of the IRS voluntary disclosure programs, or are otherwise under IRS examination concerning these issues.

Employment Tax Issues

Worker classification

We assist clients in making proper classifications and, if necessary, assist them in entering into the IRS Voluntary Classification Settlement Program (VCSP), which is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes.

Trust Fund Recovery Penalty 

We represent clients in situations where the IRS seeks to impose the Trust Fund Recovery Penalty against a responsible person or persons who have been charged with failure to withhold and pay over employment taxes to the IRS.

Contact Us

For more information about our Tax Controversy practice, please contact Mel E. Myers at 973-622-1800.