Tax Controversies and Litigation

Federal

The firm regularly represents taxpayers in civil tax matters before the Internal Revenue Service Examination and Appeals Divisions. Dave Porter represents taxpayers in criminal investigations involving IRS Criminal Investigation (CI), and criminal prosecutions involving the Department of Justice, Tax Division.  The tax controversy practice includes both domestic and international tax issues.  

The firm performs a great deal of representation involving foreign income and asset compliance issues, including voluntary disclosures (OVDP and Streamlined Procedures), and advice involving FinCEN Report 114 Report of Foreign Bank and Financial Account, and other information reports.

When a tax dispute cannot be resolved at these administrative levels, Dave has litigated disputes before the U.S. Tax Court, U.S. District Courts, the U.S. Court of Federal Claims, and the U.S. Courts of Appeals.

State and Local
 
The state tax practice focuses on controversy work involving income, employment, and transfer taxes imposed and enforced by California state agencies, including the Franchise Tax Board, State Board of Equalization, Employment Development Department, and Department of Labor. 

The state controversy practice is expected to continue to expand as the State of California becomes increasingly aggressive in its auditing and enforcement activities.

Litigated Issues Have Included:

• employee-independent contractor status
  
• transfer pricing
• summons actions
  
• business bad debts
  
• business expenses
  
• method of accounting
  
• innocent spouse relief
  
• real property
  
• refunds
  
• accumulated earnings tax
  
• reasonable compensation
  
• qualified small business stock
  
• redemption and dividends
  
• controlled foreign corporations
  
• methods of accounting
  
• reasonable compensation
  
• lien foreclosures
  
• passive activity loss
• civil fraud and accuracy related penalties. 
  

Areas of Expertise

• Civil income and employment tax audits
• Criminal tax investigations and prosecutions
• Voluntary disclosures
• IRS and FTB Administrative appeals 
• State Board of Equalization audits and appeals
• Collection disputes 
• Civil tax litigation in U.S. Tax Court, Court of Federal Claims, and state courts
• Civil and criminal tax litigation in U.S. District Court
• Appellate advocacy in the United States Court of Appeals 

Collection Expertise
 

• Collection due process hearings to prevent levies
• Lien releases, withdrawals, and foreclosure lawsuits 
• Negotiating installment agreements
• Offers in compromise
  

Articles

New Information reporting obligations by U.S. taxpayers with foreign income and assets and the IRS Offshore Voluntary Disclosure Initiative 

Do you have a Client Who Owns a Foreign Account, a Foreign Trust, or Foreign Stock?

FICA Wages and the Exemption for State Instrumentalities

Ten Rules to Follow If You're Involved in an IRS Criminal Investigation

See: Forbes Article on a federal tax controversy involving representation by Dave Porter