Receiving a notice from the Internal Revenue Service (IRS) can be stressful. The IRS may want to audit your tax return, or your refund has been frozen. You may disagree with the amount of tax the IRS says you owe. When issues arise, you need a trusted attorney to help you navigate the complexities of tax law.

Tax “controversy” cases involve legal disputes between taxpayers (individuals or businesses) and tax authorities such as the IRS or state tax agencies. Controversy cases can include several issues, such as:

• Audits: The IRS may want to review a taxpayer’s financial records to determine whether their return is accurate, or they are in compliance with the law. 
• Tax Liabilities & Assessments: Disputes over the amount of tax owed due to mistakes, misinterpretations of tax laws, or improper assessments can be confusing and difficult to navigate for the average taxpayer. Disputes can also involve issues like unpaid back taxes, interest, and penalties.
• Appeals: Taxpayers have the right to appeal if they do not agree with the IRS’s decision. The IRS has a complex administrative appeal process. If the taxpayer is unable to resolve the dispute directly the IRS, the taxpayer may have the right to petition the United States Tax Court or federal court. 
• Collections: If a tax remains unpaid, the IRS may attempt to collect the debt through liens, levies, or wage garnishments. Taxpayers have numerous options, including Collection Due Process hearings, installment agreements, or Offers in Compromise to settle the debt for less than the full amount owed.
• Employment Misclassification: Sometimes an employee’s status is misclassified by their employer. The employee might get a 1099 instead of a W2 form, or the employer insists on paying wages “under the table.” An employee’s status is a complex factual determination that can cause hardship if the classification is wrong. The IRS has a process to correct misclassifications, so an employee is properly taxed. 
• Innocent Spouse Relief: Tax law allows a taxpayer to be relieved of paying the debt of their spouse if the IRS determines that the spouse should be solely responsible for the tax liability. 

Tax controversy cases often require expert legal advice to protect your rights and obtain a resolution. Our tax attorney has nearly 15 years of tax controversy experience, and has represented taxpayers before the IRS, United States Tax Court, and the federal District Court for the Northern District of Iowa. Call us today to discuss your options.