Tax Litigation

Tax Litigation or legal proceedings are strategies used to resolve tax controversy. For more than 30 years, the attorneys at the tax law firm of Moskowitz LLP have defended clients’ tax litigation cases across the United States and utilized pro hac vice, when necessary. We continue to achieve stellar results in all types of challenging tax controversy cases representing individuals, small and large corporations from diverse industries, tax accountants, and even other tax attorneys. Moskowitz LLP provides advice and representation to U.S. and foreign taxpayers in all facets of federal and state tax matters. This includes, but is not limited to:

Our team’s persistent efforts have brought us recognition amongst our peers and aided in bringing forth changes to the IRS’s penalty process against persons that have not timely disclosed foreign financial accounts. The Internal Revenue Service reviews published decisions, and it is not uncommon for tax attorneys from other law firms to consult us about published decisions from cases we’ve litigated. We are also part of a select group of tax attorneys who have litigated foreign bank account penalty controversies, and we may be the only law firm that has sued the United States in cases involving foreign financial account penalties.

Tax litigation is unlike any other area of legal practice. In this high-stakes arena, it is extremely important to understand when to litigate and when to negotiate a settlement. Our active tax litigation practice has yielded significant advocacy and trial experience with a variety of venues and government agencies. This includes negotiating favorable settlements with Appeals Officers, Internal Revenue Service District Counsel, the United States Department of Justice, and the Internal Revenue Service National Office, as well as litigating before the United States Tax Court, United States District Courts, United States Court of Federal Claims, United States Bankruptcy Court, United States Court of Appeals, and state courts in a number of different jurisdictions. Whether we are litigating a tax controversy or negotiating a settlement, we always work hard to achieve an exceptional outcome for our clients.

Through the years, Moskowitz LLP has litigated hundreds of cases. This has given us insight into the costs involved with tax controversy. We are able to pass this benefit on to you through up front legal fees and allow you to set aside concerns over shocking legal bills in the middle of your case. Contact Moskowitz LLP today to request a consultation and find out what we can do for you.

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Tax Court Docket Number 24760-05

Moskowitz LLP represented a Son-of-Boss investor in challenging the tax consequence of international currency option transactions. A favorable settlement was achieved and documented in a unique closing agreement.

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Tax Court Docket Number 6736-07

The IRS claimed the taxpayer did not properly roll securities into Individual Retirement Accounts. Since the taxpayer kept meticulous documentation of his roll-over transactions, Moskowitz LLP was able to reach a favorable settlement with the IRS. The IRS originally increased the taxpayer’s taxable income by almost $180,000. Our attorneys convinced the IRS that their position was erroneous and the IRS settled the case for only $1,165.

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Tax Court Docket Number 10296-07

The IRS originally disallowed a substantial number of the taxpayer’s expenses related to his dental practice. Since the taxpayer was able to substantiate his expenses through his bank statements, Moskowitz LLP was able to reach a favorable settlement with the IRS. The settlement saved the taxpayer over $300,000 in federal income taxes.

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Tax Court Docket Number 13121-07

The IRS originally disallowed a substantial number of the taxpayer’s expenses related to his moving business. Since the taxpayer was able to substantiate his expenses through documentation, Moskowitz LLP was able to reach a favorable settlement with the IRS. The settlement saved the taxpayer approximately $12,000 in income taxes and penalties.

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Tax Court Docket Number 6407-06

In this case, a taxpayer constructed a new home and sold it for a profit. The IRS disallowed all of his expenses in the construction of the property. The IRS also claimed the taxpayer was in the trade or business of selling homes. They attempted to treat the taxpayer’s gains as ordinary income. Since the taxpayer had meticulous records of his expenses, Moskowitz LLP was able to reach a settlement for a fraction of the amount the IRS claimed was owed. In addition, we were able to convince the IRS to tax the gain of the sale as favorable capital gains versus ordinary income. The settlement saved the client over $250,000 in federal income tax liability.

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Tax Court Docket Number 20074-05

In this case, the taxpayer received negligent advice from his tax advisers. As a result, the IRS proposed to assess over a $300,000 federal tax liability against him. Because the taxpayer had documentation to substantiate most of the expenses reported on his tax returns, Moskowitz LLP was able to negotiate a favorable settlement on behalf of the taxpayer. We were also able to convince the IRS to remove an accuracy related penalty that exceeded $50,000.

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Tax Court Docket Number 3247-05

In this case, the IRS disallowed all of the losses claimed from two partnerships the taxpayer was a partner in. The IRS also claimed that the partnerships should have been disallowed because the partnerships had no economic substance. Moskowitz LLP was able to utilize the documentation provided by the taxpayer to negotiate a difficult settlement. The IRS agreed to allow over $450,000 of losses from the client’s partnership allocations that were originally disallowed. The IRS even agreed to allow over $36,000 in losses not originally claimed on the taxpayer’s individual income tax returns. We estimate that our settlement with the IRS saved the client over $200,000 in federal tax liability.

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NHUSS TRUST, et al.v Commissioner

Trial in U.S. Tax Court decided on October 11, 2005. One of the issues in this case was the basis of the taxpayers’ home. The Tax Court agreed to increase the taxpayers’ basis in their home.

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Luiz v.Commissioner

Trial in U.S. Tax Court decided on January 29, 2004. One of the issues in this case was whether the taxpayers were liable for additions to tax for a late filing penalty. Moskowitz LLP convinced the IRS during the trial to concede the late filing penalty. We estimate this victory saved the taxpayer nearly $20,000 in federal tax liability.

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Thompson v. Commissioner

Trial in U.S. Tax Court decided July 3, 2007. One of the issues in this case was whether the taxpayer was liable for an accuracy-related penalty. The Tax Court agreed not to assess an accuracy-related penalty against the taxpayer.

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Fuller v. Commissioner

Trial in U.S. Tax Court decided March 19, 2007. Although the Court ruled against the taxpayers, Moskowitz LLP was able to negotiate numerous concessions with the IRS prior to trial which resulted in a significant reduction of federal tax liability.

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Potter v. Commissioner

Motion in U.S. Tax Court requested that the IRS reconsider a denial of an installment payment agreement. The Court agreed to remand the case to the IRS to reconsider their denial of the taxpayer’s request for an installment payment agreement.

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G. Kierstead Family Holding Trust, Et Al. v. Commissioner

Argued before the United States Tax Court. Case is currently being argued before the United States Court of Appeals for the Ninth Circuit.

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Civil Action No. 07-cv-00903-EWN-BNB v. United States

Case is currently being litigated before the United States District Court for the District of Colorado. Case involves whether a taxpayer is entitled to deduct the alimony payments he made to his ex-wife in 1993.

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1:08-cv00326-TCW v. United States

Case is currently being litigated before the United States Federal Claims Court. Case involves whether the IRS wrongfully included the proceeds of a home refinance in taxpayer’s gross income.

* The results portrayed in the cases mentioned were dependent on the facts of that particular case, and the results will differ if based on different facts.

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