Resolving Tax Controversies
Tax disputes are stressful and can have significant financial consequences if handled incorrectly. Expert legal guidance is essential whether you’re a business owner facing a complex audit, an individual dealing with a penalty for underpayment, or a multinational corporation involved in an international tax controversy. At Todd S. Unger, Esq. LLC, we don’t just provide legal guidance; we bring a wealth of expertise and a track record of success in helping clients navigate and resolve tax disputes at every level—local, state, federal, and international. Here are the top ways we handle tax disputes, leveraging our in-depth tax law expertise and decades of experience to ensure you’re in the best possible hands.
1. Thorough Audit Representation
Audits can range from routine to highly invasive, depending on the complexity of your tax situation. The IRS conducts several types of audits, including correspondence, in-person office, and field audits, each requiring different levels of documentation and engagement. At Todd S. Unger, Esq. LLC, our role begins well before the audit officially starts. We take a proactive approach, conducting a pre-audit risk assessment and identifying potential red flags such as underreported income, questionable deductions, or missing documentation. This approach ensures you are well-prepared and in control by proactively organizing and reviewing your tax records.
During the audit process, we liaise directly with the IRS, state, or local tax authorities on your behalf, ensuring compliance with IRS Information Document Requests (IDRs), mitigating the risks of penalties, and reducing the chances of a full-blown tax dispute. If any discrepancies arise, we aim to resolve them during the audit itself before they escalate into formal disputes.
2. Tax Dispute Resolution and Controversy Management
Tax disputes can occur due to errors, differing interpretations of tax law, or IRS disagreements over complex tax strategies. Our firm is skilled in handling disputes through IRS appeals, alternative dispute resolution (ADR) methods, and other administrative remedies. We offer clients a unique advantage by leveraging our deep experience with the IRS and U.S. Department of Justice Tax Division.
We specialize in programs such as IRS Fast Track Mediation and Fast Track Settlement, designed to expedite resolution and avoid the costly and time-consuming litigation process. These mechanisms allow us to negotiate directly with the IRS appeals office and settle disputes efficiently, often with favorable outcomes. Our familiarity with IRS-delegated settlement authority ensures we can minimize penalties and secure quick resolutions to even the most contentious issues.
3. Handling IRS Notices, Assessments, and CP14 Responses
When taxpayers receive an IRS notice—such as a CP14, which notifies them of an unpaid tax balance—it’s crucial to act swiftly. Ignoring IRS notices can lead to liens, levies, and wage garnishments at Todd S. Unger, Esq. LLC, we assist clients in responding appropriately to these notices. Suppose you disagree with the IRS’s assessment. In that case, we help you file a formal objection or request reconsideration under the IRS’s Audit Reconsideration process, ensuring compliance with critical deadlines and minimizing financial penalties.
We also guide clients through more technical processes, such as filing for Innocent Spouse Relief or utilizing Collection Due Process (CDP) hearings to dispute the collection actions taken by the IRS, such as liens or levies.
4. Penalty and Interest Abatement
Penalties and interest can quickly increase when disputes arise, or tax obligations remain unpaid. The IRS imposes penalties for various reasons, including late filing, underpayment of taxes, or failure to file returns. In certain cases, penalties can account for 25% to 50% of the total tax owed. We specialize in seeking penalty abatement through mechanisms like First-Time Penalty Abatement (FTA) and reasonable cause arguments under IRS guidelines. By building a robust case based on documentation and IRS procedural rules, we work to reduce or eliminate penalties and halt the accrual of interest.
5. Installment Agreements and Offer in Compromise
For clients who owe substantial tax amounts but cannot pay them in full, Installment Agreements (IAs) or an Offer in Compromise (OIC) can be invaluable tools. An OIC allows taxpayers to settle their tax debt for less than the full amount owed, while an installment agreement will enable them to make manageable monthly payments. These agreements require intricate knowledge of IRS acceptance criteria and negotiation tactics, as the IRS carefully scrutinizes factors like reasonable collection potential (RCP).
At Todd S. Unger, Esq. LLC, we tailor these agreements to your financial situation and ensure that the terms benefit you. We handle negotiations, draft financial disclosures, and prepare the extensive documentation required to increase the chances of IRS acceptance.
6. IRS Appeals and Litigation Support
When disputes cannot be resolved through administrative means or mediation, the case may proceed to litigation. Depending on the nature of the dispute, we represent clients before the U.S. Tax Court, Federal District Courts, and the U.S. Court of Appeals. Our firm draws on extensive knowledge of both substantive tax law and procedural rules, utilizing legal strategies that can lead to favorable outcomes at summary judgment or trial.
Our approach includes thorough preparation, extensive document discovery, deposition of IRS personnel, and expert witness testimony to substantiate your claims. If needed, we partner with Latham’s renowned Supreme Court & Appellate Practice, offering an unparalleled ability to handle tax appeals with complex legal arguments.
7. Representation in Criminal Tax Investigations
Taxpayers accused of criminal tax offenses, such as tax fraud or evasion, face serious consequences, including imprisonment, fines, and reputational damage. Todd S. Unger, Esq. LLC provides a robust defense in criminal tax matters, leveraging our experience with IRS Criminal Investigation (CI) procedures. We meticulously review financial records, build strong defense arguments, and negotiate with government prosecutors to minimize the severity of the charges.
For clients involved in potential willful FBAR violations or FATCA non-compliance, we assist in navigating Voluntary Disclosure Programs, helping to avoid criminal prosecution and reduce penalties.
8. Foreign Tax Compliance and Reporting
With the IRS scrutinizing foreign assets and income more closely, compliance with the Foreign Account Tax Compliance Act (FATCA) and Report of Foreign Bank and Financial Accounts (FBAR) has become critical for individuals and businesses with foreign financial interests. Non-compliance with these regulations can result in steep penalties—sometimes as high as 50% of the account balance per violation.
We help clients correct previous non-compliance, navigate voluntary disclosure programs, and minimize exposure to future penalties by ensuring complete and accurate reporting. Our global network of tax experts lets us advise on cross-border issues, including compliance with foreign tax credits (FTC) and the Foreign Investment in Real Property Tax Act (FIRPTA).
9. Out-of-Court Settlements and Alternative Dispute Resolution
In many cases, resolving disputes without litigation is in the best interest of both parties. We strongly oppose out-of-court settlements, often leading to a faster, more cost-effective resolution. By utilizing alternative dispute resolution (ADR) techniques, including mediation and arbitration, we seek to reach mutually agreeable outcomes that avoid the unpredictability of litigation. This approach saves clients time, reduces costs, and limits their exposure to financial risk.
10. Tax Compliance and Risk Management
Prevention is the best strategy when it comes to tax disputes. At Todd S. Unger, Esq. LLC, we work with our clients to identify and mitigate potential tax issues before they escalate into disputes. Through pre-filing agreements (PFAs), advance pricing agreements (APAs), and voluntary disclosures, we help clients ensure compliance and reduce audit risk. Our proactive approach includes thorough reviews of tax positions and detailed risk assessments to avoid unnecessary controversies.
Why WORK WITH TODD?
With decades of experience in handling complex tax disputes, our firm offers clients a comprehensive solution to even the most challenging tax issues. We combine deep technical expertise with practical insights and maintain strong relationships with IRS officials and other tax authorities to deliver favorable results. Whether through negotiation, mediation, or litigation, we’re committed to resolving disputes quickly and effectively, allowing our clients to move forward confidently.
If you’re facing a tax dispute, from an IRS audit to a complex international tax issue, Todd S. Unger, Esq. LLC is here to help. Send us a message or call us to schedule a consultation and protect your financial future!
