The Tax Controversy practice at McManimon, Scotland, & Baumann, LLC, focuses on advising clients in their interactions with the Internal Revenue Service (“IRS”) and State of New Jersey tax authorities at all levels, whether engaging with revenue agents during examination, requesting letter rulings or administrative guidance, representing clients at the Appeals Office, litigating cases in the United States or New Jersey Tax Courts, 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 aim for excellence in everything that we do and are results-focused.
Who We Serve
We counsel clients at every stage of an examination with the IRS or State of New Jersey 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 Services
Audit/Examination
- 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 examination, we work diligently with the Appeals Office towards a potential resolution to avoid protracted litigation, by managing communications with tax authorities, 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 of State of New Jersey Appeals Offices.
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) 622-5664.
