Top Texas Civil Tax Controversy Attorney
Introduction to Civil Tax Controversy
Few situations are more stressful for an individual or business than dealing with taxing authorities. Tax is one of the most complex areas of the law, and Federal Tax Law (The Internal Revenue Code) is enforced by the Internal Revenue Service. Stated simply, Civil Tax Controversy is the process by which an individual or business challenges an IRS action or determination. Civil Tax Controversies can occur due to a wide variety of IRS actions and/or determinations, including audits, penalties, and Collection action.
In Federal Tax Controversy, tax disputes may be resolved with the IRS Audit function, the IRS Appeals function, or in the U.S. Tax Court or the Federal Court. There are considerable risks in attempting to handle these complex tax disputes without legal representation, and if you are unsuccessful, you could be facing additional penalties, interest, sustained liens and levies, property seizures, and wage garnishments. Most crucially, depending on the circumstances of your case, your civil tax matter could become a criminal tax investigation.
Whether you’re facing an IRS examination, DOJ tax investigation, or tax penalties, Booth P.C. will deliver strategic, results-driven representation to protect your interests and resolve disputes efficiently. Booth P.C. has an unparalleled breadth and depth of knowledge, experience, and insight regarding the Internal Revenue Service, Department of Justice, the U.S. Tax Court, and Federal District Courts. Booth P.C. has significant experience in all aspects of Tax, from the largest and most complex tax controversy and litigation disputes to the “real people with real problems” issues. Booth P.C. is your trusted advisor for all manner of Civil Tax Controversies.
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Areas of Civil Tax Dispute
Tax impacts every area of life and the law, and this means there is significant Civil Tax Controversy exposure in virtually every situation. IRS audits and examinations for individuals, businesses, and self-employed taxpayers can include virtually any area of your life or business. Generally, however, most IRS Audits involve disputes concerning:
- Underreported income, overstated deductions, or improper credits.
- Employment taxes, including payroll and withholding issues.
- Excise taxes.
- Estate taxes.
- Tax collection issues such as liens, levies, and wage garnishments.
- IRS penalties.
At every stage of the Civil Tax controversy process, retaining an experienced tax lawyer and law firm such as Booth P.C. gives you or your business the best opportunity for the best resolution of your tax dispute.
IRS Audits and Examinations
IRS Audits and examinations can occur for many reasons. In some cases, the IRS selects returns randomly through computerized scoring systems that compare your return against statistical norms. If your figures differ significantly from those of similar taxpayers, your return may be flagged for further examination. Other times, specific red flags can trigger an audit. These include reporting repeated business losses, unusually large deductions, unreported income, or foreign account activity.
The IRS also executes programs designed to identify underreporting of income, often by cross-checking W-2s, 1099s, and other third-party records against your filed return. Discrepancies can quickly attract attention. The IRS also specifically designates certain transactions or classes of taxpayers for increased Audit activity. This can include high net worth individuals, transactions the IRS believes have a high likelihood of abuse, and aggressive tax planning arrangements.
During the IRS Audit or Examination, the IRS will typically ask for documents or explanations to support the positions taken on your tax return, explanations for items that may not have been reported, confirmation of information received from third parties, and information regarding the assertion of penalties.
During an IRS Audit, knowledgeable and experienced representation is critical. A Civil Tax Controversy lawyer from Booth P.C. can ensure that the Internal Revenue Service follows proper procedures, potentially limit the scope of the Audit, and, most importantly,y manage all communications with the IRS, limiting your contact with the IRS and freeing you from the stress of the examination. A Booth P.C. tax attorney will also manage document production during the examination and employ the best strategy to get to the right result as quickly as possible while protecting taxpayer rights.
IRS Collection Action Defense
IRS Collection Actions are one of the most unsettling experiences an individual or business will face, and immediate action is critical to successful outcomes. The Internal Revenue Service is a “Super Creditor, meaning that it has Collection tools it can use that are either unavailable to other creditors, or it can use these Collection tools without prior Court approval. For example, the IRS can levy (garnish) your bank account without first going to Court and getting a judgment against you. Also, the IRS has what is known as a “secret lien” that automatically arises when you have an outstanding tax debt. The IRS can also levy (garnish) a portion of your Social Security payments in certain instances.
If you receive a Notice that the IRS is intending to levy (garnish) your property, or that it intends to file a lien, you must act quickly, as you generally only have 30 days to file a petition for a Collection Due Process (CDP) hearing. While there are several notices that the IRS sends that give you CDP rights, the most common include:
- LT11- Final Notice of Intent to Levy and CDP Rights.
- LT1058- Final Notice of Intent to Levy and CDP Rights (older notice but still valid).
- CP297- Final Notice of Intent to Levy and CDP Rights for businesses.
- Letter 3172- Notice of Federal Tax Lien Filing and CDP Rights.
- CP90- Final Notice of Intent to Levy on and CDP Rights ( most often used for Automated Collection Cases)
At Booth P.C., we have unparalleled experience in IRS Collection matters, from billion-dollar jeopardy collection cases to installment agreements for individuals with balances under $5,000.00. Based on your situation, we will use the appropriate legal tools to stop or delay IRS Collection while your dispute with the IRS is pending. Whether filing a Notice for a CDP hearing, an Installment Agreement, an Offer in Compromise, or seeking Currently Not Collectible Status, we will take immediate steps to minimize financial harm and preserve your assets.
IRS Appeals and Administrative Disputes
After an IRS Audit, taxpayers often have the option to have their case heard by the IRS Independent Office of Appeals. The Independent Office of Appeals (IRS Appeals) is an internal alternative dispute resolution/administrative appeals service within the Internal Revenue Service whose primary function is to resolve tax disputes between the IRS and taxpayers. IRS Appeals settles cases based on evidence gathered during an IRS Audit and the legal issues involved in the case.
Generally, the IRS administrative appeals process begins at the conclusion of an IRS proposed adjustment or determination, either at the conclusion of an IRS examination or before an IRS collection action. After the proposed adjustment or determination, you will receive a letter from the IRS. To have your case considered by IRS Appeals, you must file an Appeals protest. Generally, you can file an IRS Appeals protest within the following timeframes based on the type of notice or letter you have received:
- 30-Day Letter (30 days to file-it’s in the name!)
- Penalty Notice (30 Days)
- Offer in Compromise Denial (30 Days).
- Collection Due Process (CDP) Determination Letter (30 Days).
- Trust Fund Recovery Penalty Notification (60 Days).
- Innocent Spouse Preliminary Determination (30 Days).
To file an IRS Appeals protest, you must first determine whether you are filing a Small Case protest or a Formal Appeals protest. A Small Case protest is available to be filed if the total amount in dispute, including penalties, is less than $25,000.00. If your total amount in dispute is more than $25,000.00, you must file a Formal Appeals protest. In either situation, to file a protest, you must send your protest to the address listed on the letter you receive from the Internal Revenue Service.
There are significant benefits in resolving tax disputes at the administrative level versus litigation. For example, if you have a sensitive tax matter that you would prefer to remain as confidential as possible, administrative resolution avoids the public nature of litigation. Also, you avoid the additional expense and time commitment that tax controversy litigation usually requires.
Retaining a Tax Controversy litigation law firm with significant tax knowledge, such as Booth P.C., will analyze your case to determine the best strategy for negotiating a settlement with IRS Appeals and protect your interests. No two cases are alike, and the strategy used in your case by Booth P.C. will be unique to your facts and the relevant law in order to negotiate the best settlement of your tax dispute.
U.S. Tax Court Representation
Sometimes, Tax Controversy litigation is unavoidable. If your case does not settle with the IRS Examination function, Collection function, or Independent Office of Appeals, your last chance to resolve your tax dispute without paying the Internal Revenue Service is to sue the Internal Revenue Service by filing a petition in the United States Tax Court. You can also file a petition in the United States Tax Court to challenge certain IRS Collection and penalty determinations. The U.S. Tax Court has jurisdiction to hear any tax dispute, but the most common tax cases litigated in the U.S. Tax Court include:
- Unreported/Underreported income.
- Penalties.
- Disallowed deductions, credits, and expenses.
- Collection Due Process cases
- Filed after the IRS sends a Notice of Intent to Levy or Notice of Federal Tax Lien.
- Also includes the denial of an Offer in Compromise or the IRS’s refusal of an Installment Agreement.
- Innocent Spouse relief.
- Whistleblower Awards.
- Passport Revocation.
- Worker Classification.
- Estate Tax and Gift Taxes.
Many assume that filing a petition leads directly to a trial in the U.S. Tax Court. This is not the case. There are several steps in the trial preparation process. The Office of Chief Counsel represents the Internal Revenue Service in the U.S. Tax Court. The tax litigation attorneys and paralegals at the Office of Chief Counsel will vigorously represent the Internal Revenue Service throughout the trial preparation process, including conducting discovery, preparing evidence, issuing subpoenas, and identifying potential witnesses.
Booth P.C. has over 15 years of Federal Tax litigation experience in virtually all types of tax litigation cases. The breadth and depth of our Tax attorneys’ experience is virtually unmatched, and includes over 50 trials, hundreds of motion hearings, and expertise in all aspects of trial preparation in the U.S. Tax Court. Oftentimes, a well-prepared and strategized case produces the best settlements, and Booth P.C.’s U.S. Tax Court experience is virtually unmatched, as is its intimate knowledge of the Internal Revenue Service.
Federal Court Tax Controversy Representation
Tax litigation against the Internal Revenue Service can also be resolved in Federal District Courts. Tax disputes, including Tax refunds, Jeopardy Determinations, Injunctions, and Collection matters, are heard in Federal District Courts and the Court of Federal Claims. Additionally, appellate review of Decisions issued by the U.S. Tax Court, Federal District Courts, and Courts of Federal Claims is heard at the first instance by the Federal Appellate Courts and, in rare circumstances, the U.S. Supreme Court.
Booth P.C.’s tax attorney has over 15 years of Federal Court tax litigation experience and is admitted to the Southern District of Texas and the U.S. Supreme Court. There is no case too large or small, and no matter how complex, we can help you resolve it.
IRS Tax Penalty Defense
When the Internal Revenue Service asserts penalties in a Civil Tax controversy matter, taxpayers can dispute penalty determinations administratively or through litigation. There are several penalties the IRS asserts against individuals and businesses, but the most common penalties include:
- Failure-to-file
- Failure-to-pay
- Accuracy-related penalties
- Employment Tax/payroll penalties
- Information return penalties
- Trust Fund Recovery Penalty
- International reporting penalties.
These penalties can be challenged after an Audit, while your case is with IRS Appeals, before a Collection action, after the IRS sends you a bill, and at the U.S. Tax Court. There are several strategies involved in IRS Tax Penalty Defense, and a law firm with extensive tax knowledge, like Booth P.C,. will analyze the facts in your case to determine which strategy will have the best opportunity for successfully abating the penalty asserted against you.
Foreign Bank Account Defense
The Internal Revenue Service takes Foreign Bank account reporting (and other areas of offshore tax compliance) extremely seriously. Over the past decade, the IRS has devoted significant resources to offshore tax compliance, as evidenced by its extensive use of John Doe Summons to extract U.S.-based taxpayer information from non-U.S.-based institutions like banks, cryptocurrency exchanges, and foreign financial brokers. Crucially, some civil offshore tax compliance cases have resulted in criminal tax investigations.
Foreign Bank Account Reporting (FBAR) is a serious matter, and the penalties associated with these examinations can be significant. Additionally, depending on the nature of the penalty, the Department of Justice may bring a lawsuit against you for payment of FBAR penalties assessed against you. Booth P.C. has over a decade of significant offshore tax compliance experience and will work to resolve your case quickly while mitigating the potential for Criminal tax investigations.
Why Choose Booth P.C. for Civil Tax Controversy
At Booth P.C., we have over 15 years of experience in all aspects of Civil tax controversy and litigation. From billion-dollar cases to small tax matters, there is likely no tax matter that we do not have direct, real-world experience resolving. Booth P.C. will develop personalized strategies for your situation to maximize successful outcomes, and we are dedicated to first-rate client service. We are zealous advocates, clear communicators, and results-oriented professionals. We prefer to get to the right results for our clients, quickly. Contact Booth P.C. today.
Frequently Asked Questions
What does a Civil Tax controversy attorney do?
A civil tax controversy attorney represents individuals and businesses in disputes with the IRS or state taxing authorities involving audits, assessments, penalties, collections, appeals, and tax litigation. The attorney manages all communications with tax authorities, develops legal and factual defenses, negotiates resolutions such as installment agreements or offers in compromise, and, when necessary, represents clients in tax court or federal court to challenge improper assessments. Their role is to protect clients’ rights, minimize financial exposure, and resolve tax disputes efficiently while avoiding unnecessary enforcement actions.
When do you need a tax controversy attorney?
You need a tax controversy attorney when you are facing an IRS audit, significant tax assessments, penalties, liens, levies, or other collection actions, or when a dispute with the IRS or a state tax authority cannot be resolved informally. An attorney is especially important if large amounts are at stake, legal arguments are required, appeals or tax litigation may be necessary, or there is a risk of escalating enforcement, ensuring your rights are protected, and the matter is handled strategically to minimize financial and legal exposure.
How does a civil tax dispute differ from a criminal one?
A civil tax dispute involves disagreements over tax liability, penalties, or compliance issues and is resolved through audits, assessments, appeals, or collections, with consequences typically limited to financial penalties, interest, or enforcement actions. In contrast, a criminal tax matter involves allegations of willful misconduct—such as tax evasion or fraud—prosecuted by the government and can result in severe penalties including fines, probation, or imprisonment, requiring a higher burden of proof and significantly greater legal risk.
What is the tax litigation process before the IRS?
Generally, the Tax litigation process before the IRS begins when a taxpayer receives a letter advising them that their tax return has been selected for examination, a reporting error has been discovered, or that the IRS is seeking to collect back taxes (taxes that have been previously assessed but not paid). During administrative examination or collection, the focus should be on resolving the case at the lowest level possible while preparing for litigation if administrative resolution is not possible. This includes having your case heard by the IRS Independent Office of Appeals. If administrative resolution is not possible, the IRS will send a notice that gives taxpayers the right to file a petition in the U.S. Tax Court to have a judge redetermine their tax deficiency (examination case) or determine if the Collection action proposed by the IRS is appropriate (collection case).
If you file a petition in the U.S. Tax Court, your case will be assigned to an attorney in the Office of Chief Counsel for the IRS. You will be contacted by this attorney as your case progresses to trial, and you will be required to conduct pre-trial discovery, file motions, and prepare a pre-trial memorandum that outlines the facts and law applicable to your case. You will then try your case before a U.S. Tax Court judge and, if you are not successful, file an appeal to a Federal Appellate court.
How can attorneys resolve tax controversies without going to court?
A skilled tax controversy attorney will attempt to settle your case at several stages of the tax controversy process. There are several opportunities to negotiate a settlement during the examination, administrative appeals, and tax court litigation process. Negotiating a settlement on favorable terms will require strategically presenting evidence in a way that is most advantageous to your position.
What types of tax controversy legal services are available?
At Booth P.C., our tax attorney has over 15 years of experience in all aspects of tax litigation, including IRS Examinations, IRS Collection, IRS Appeals, U.S. Tax Court representation, and Federal District Court representation.
How can a civil tax dispute lawyer help during an IRS audit?
A civil tax controversy attorney helps during an IRS audit by managing all communications with the IRS, ensuring the audit stays within proper scope, and protecting the client’s rights at every stage. This attorney organizes and presents documentation, responds strategically to IRS inquiries, challenges improper adjustments, and negotiates to reduce proposed taxes, penalties, and interest. By handling deadlines and legal arguments, a skilled Civil Tax Controversy attorney minimizes exposure, prevents costly errors, and positions the client for a favorable resolution through audit reconsideration or appeal if necessary.
What is the role of a tax litigation and controversy attorney in appeals?
As your case is considered by the IRS Independent Office of Appeals, a Civil Tax Controversy will prepare your Appeals protest, ensuring that your position is accurately stated and legally sufficient and correct. A Civil Tax Attorney will also represent you at the Appeals Conference, responding to issues raised by the Appeals Officer, as well as respond to all inquiries and requests for information.
How does IRS tax controversy representation protect clients?
Representation by an IRS tax controversy attorney protects clients by ensuring their rights are safeguarded while navigating audits, collections, appeals, and disputes with the IRS. A skilled tax attorney acts as a buffer between the client and the IRS, handling communications, deadlines, and negotiations to prevent costly mistakes, reduce stress, and limit unnecessary disclosures. This helps clients achieve the most favorable outcomes, including penalty abatements, installment agreements, offers in compromise, or appeal resolutions, while minimizing financial exposure and avoiding enforcement actions like liens, levies, wage garnishments, or Criminal investigations.
How can an IRS audit and appeals attorney benefit businesses?
An IRS audit and appeals attorney benefits businesses by representing them throughout examinations/ disputes, ensuring compliance with tax laws and regulations while aggressively defending against improper actions and assessments. A skilled Civil Tax Attorney manages all communications with the IRS, prepares and presents documentation, challenges audit findings, and negotiates resolutions at the lowest level possible that reduce taxes, penalties, and interest. If settlement is not possible during the Audit, a skilled Tax Controversy attorney navigates the IRS appeals process to seek fair, efficient outcomes without litigation, helping businesses avoid disruptions, preserve cash flow, and reduce the risk of liens, levies, or prolonged enforcement actions