Tax Litigation and Tax Controversy
- Frisco Tax Lawyers in Freeman’s tax controversy and litigation practice have been named to U.S. News and World Report’s Best Lawyers in America list, recognized by Chambers & Partners as among the leading tax and litigation attorneys in the United States, and recognized as the “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas.
- Our tax litigation attorneys include former IRS trial attorneys, former clerks to the Chief Judge of the United States Tax Court, tax law professors, dual-credentialed CPAs, and attorneys with advanced LL.M. tax degrees from the most prestigious tax programs in the nation.
- Freeman’s tax attorneys have extensive trial experience litigating major tax disputes.
Tax Litigation Overview
Our Frisco tax lawyers’ tax litigation practice has a national and international reputation for high-stakes, complex tax controversies, including IRS tax litigation and cross-border tax disputes. We represent clients at every stage in the lifecycle of a tax dispute: from the administrative stage, including audits and administrative appeals, to the judicial level, from trial court through appeals. Our cases often address complex and novel tax issues, setting precedent that impacts tax laws, which is why Freeman Law is known as the firm that clients seek out when the stakes are high and the issues are complex.
Our Frisco tax lawyers are known for providing creative and innovative solutions to the most complex tax problems.
Along with our reputation for integrity and sophistication, our Frisco tax lawyers maintain close working relationships with federal and state tax authorities, due in large part to our extensive tax knowledge and reputation for persuasive advocacy.
Best Lawyers® and U.S. News & World Report have recognized Freeman Law as a “Tier 1” Tax Law firm and our tax attorneys have garnered national recognition for their tax litigation work, such as:
- The “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas
- U.S. News – Best Lawyers® Best Lawyers in America
- The Best Lawyers in America®, Chambers USA
Consistent with this recognition of our tax litigation practice, Freeman Law hosts the world’s largest international tax conference, focusing heavily on civil and criminal tax litigation developments in the United States and internationally. We also provide an intensive Tax Court preparation course, training tax attorneys across the nation for the Tax Court’s bar examination and providing tax advocacy and litigation skills.
Our clients include ultra-high-net-worth and high-net-worth individuals, private and publicly-held corporations, partnerships, and trusts and estates in every phase of federal tax controversy. Our Frisco tax lawyers serve clients across multiple industries, including a depth of industry and tax experience in energy, private equity and hedge funds, manufacturing, technology, and real estate, among others.
Freeman Law’s Frisco tax attorneys have litigated cutting-edge tax litigation issues, including tax jurisdiction, the validity of tax regulations and other tax promulgations, the Administrative Procedures Act (“APA”), the Declaratory Judgment Act (“DJA”), the constitutionality of tax provisions, the passport revocation process, and assessable penalties provisions. Our Frisco tax attorneys also represent clients in sensitive tax matters, such as IRS investigations, allegations of tax evasion, tax fraud, voluntary disclosures, IRS audits, and administrative appeals.
Our tax controversy lawyers have extensive experience in matters involving partnership audits and litigation under both the TEFRA and BBA regimes, U.S. territorial tax regimes, “inbound” and “outbound” international tax, foreign trusts, foreign tax reporting penalties, cryptocurrency, R&D credits, valuation, executive compensation, and transfer pricing.
Our Frisco tax lawyers are experienced litigators with trial-tested litigation skills and in-depth substantive tax knowledge, having collectively litigated hundreds of cases before the U.S. Tax Court and federal district courts.
We offer practical solutions to tax disputes, leading our clients through IRS tax proceedings and litigating with the Department of Justice–Tax Division. We litigate complex tax cases and tax controversies in the U.S. Tax Court, federal district courts, the U.S. Court of Federal Claims, and federal bankruptcy courts, as well as in state court and before state tax authorities. Our tax controversy services include:
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Audit controversy
We leverage our unparalleled procedural knowledge and insight, including utilizing Fast Track Appeals resolution, pre-filing agreements (PFAs), Early Referral, and other IRS procedures and programs. We have extensive experience with IRS summonses, enforcement proceedings and privilege disputes.
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Competent Authority assistance and APAs
Requests for competent authority assistance, unilateral, bilateral, and multi-lateral advance pricing agreements, and private letter rulings.
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Issue resolution
Obtaining IRS or Treasury action in the form of rulings from the IRS National Office, including private letter rulings (PLRs) and technical advice memoranda (TAMs).
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Government relations
Interacting with Congressional tax committees and upper levels of the U.S. Treasury Department and IRS Office of Chief Counsel to obtain critical legislation, major policy changes, regulations, and published guidance.
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Federal tax litigation
Representation of clients in civil and criminal tax matters in the U.S. Tax Court, the Court of Federal Claims, and district courts.
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IRS Appeals
Representing clients before the IRS Independent Office of Appeals.
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Tax penalties.
Represented client against criminal tax evasion charges involving allegations of the evasion of tax in excess of $1.5 million. Obtained result of no prison time.
Freeman Law’s Frisco tax attorneys provide practical counsel and creative solutions, leveraging their combined depth and breadth of substantive tax knowledge. Our tax litigation counsel draws on their backgrounds as tax law authors, as tax trial attorneys with IRS Chief Counsel, clerking for the U.S. Tax Court, and teaching tax law at top-tier law schools, as well as their years of experience as first-chair trial lawyers in high-stakes, complex tax controversies. Our Frisco tax lawyers provide skillful representation and employ insightful strategies—delivering first-rate caliber services, whether the dispute involves individual, corporate or partnership tax.
Our Frisco tax lawyers thrive on resolving high-stakes tax disputes and controversies. Our tax controversy attorneys have successfully represented taxpayers in cross-border tax disputes and defending challenges on economic substance and sham transaction grounds, tax fraud penalties, and tax shelter promoter disputes. We have represented taxpayer in transfer-pricing matters involving intellectual property; offshore tax compliance disputes involving FBAR penalties and international information return penalties; and litigated novel issues and “issues of first impression.”
Our tax cases and experience involve numerous tax litigation issues, including:
- Conservation easements
- Micro-captive insurance
- Foreign Account Tax Compliance Act (FATCA) issues
- International transfer-pricing
- International and offshore tax compliance and reporting, including international information returns and penalties
- FBAR penalties
- Tax shelter cases, including injunction and penalty cases
- Valuation issues
- Tax penalty issues
- Digital currency and blockchain
Our Approach. When the stakes are high, clients rely on our tax attorney experience, knowledge, and talent to navigate every level of the tax dispute life cycle—from audits and examinations to the courtroom, and all levels of appeals.
Positioning a tax case for the right resolution, whether through settlement or a verdict, is both an art and a science. Optimal results require skilled advocacy, measured judgment, and a depth of substantive tax knowledge. At Freeman Law, our Frisco tax lawyers draw on our experience and wealth of tax knowledge to advise and guide clients through the entire tax controversy process, building the right strategy to resolve tax controversies from day one.
Our Frisco tax lawyers provide strategic counseling and seasoned advocacy, finding the best path forward in the most complex and trying of situations. In the process, we provide clients with a voice and work collaboratively to position their case in the most favorable light.
Because of our unique substantive and procedural knowledge, we are able to provide a comprehensive approach to the tax dispute resolution process, formulating creative solutions to the most sophisticated tax problems.
Tax Controversies
When the IRS determines that there is a tax deficiency, a tax dispute may ultimately be heard in the United States Tax Court, the United States District Court, or in the United States Court of Federal Claims. We frequently help our clients navigate the procedural options and judicial fora, analyzing the governing law and procedural benefits in formulating a clear strategy.
Freeman Law aggressively represents clients in tax litigation at both the state and federal levels. When the stakes are high, clients rely on our experience, knowledge, and talent to help them navigate all levels of the tax dispute life cycle—from audits and examinations to the trial courtroom to all levels of appeals.
Our Frisco tax lawyers represent taxpayers in audits, tax litigation, and criminal tax investigations on the federal, state, or local level. We are well-versed in the tax controversy process.
Tax Planning
Careful planning can provide a means to avoid tax controversies. Identifying tax issues can sometimes mean the difference between a well-prepared tax position and tax-related penalty assessments. Our Frisco tax lawyers regularly guide clients through the private letter ruling (PLR) process and the preparation of disclosures, as well as providing tax opinions and evaluating tax risk.
Tax Expert Witnesses
Our Frisco tax attorneys are regularly engaged to serve as consulting and testifying experts with respect to tax matters.
Tax Resolution
- audit representation;
- unfiled and delinquent tax returns;
- appeals and collection actions;
- federal and state court tax litigation;
- innocent spouse relief;
- voluntary disclosures;
- removal of liens;
- levies, seizures, wage garnishments;
- offers in compromise;
- installment agreements;
- tax penalty abatement and defense, and
- Freedom of Information Act requests, among other matters.
IRS Audits and Appeals
Freeman Law’s Frisco tax lawyers represents clients in IRS examinations, leveling the playing field. We guide clients through the IRS audit process, formulating an audit strategy and interfacing with IRS revenue agents.
Our Frisco tax lawyers handle audits relating to cross-border issues, such as transfer pricing; offshore insurance; foreign taxes; and controlled foreign corporation status. We represent taxpayers in IRS “wealth squad” audits; TEFRA and BBA partnership audits; and audits focused on economic substance issues, tax accounting issues, corporate acquisitions and divestitures, and other sophisticated IRS examination issues.
Our Frisco tax lawyers, legal team, and tax professionals often interact with the IRS National Office and Treasury Department, preparing ruling requests, engaging in Technical Advice proceedings, and seeking administrative determinations, revenue rulings, and Treasury regulations.
We also utilize Fast Track mediation, Fast Track Settlement conferences, early referrals, post-appeals mediation, and IRS arbitration.
Tax Litigation
Positioning a tax case for the right resolution, whether through settlement or a verdict, is both an art and a science. Optimal results require skilled advocacy, measured judgment, and a depth of substantive tax knowledge. At Freeman Law, our Frisco tax lawyers draw on our experience and wealth of tax knowledge to advise and guide clients through the entire tax controversy process, building the right strategy to resolve tax controversies from day one.
Freeman Law’s Frisco tax lawyers represents businesses and individuals in a wide range of tax and related disputes, including disputes related to:
- Federal Income Tax
- Estate and Gift Tax
- Employment Tax
- Excise Tax
- Fraud
- International Information Returns
- Foreign Bank Account Report (FBAR) Penalties
- Civil Tax Penalties
- Criminal Tax Prosecutions
Our Frisco tax lawyers provide strategic counseling and seasoned advocacy, finding the best path forward in the most complex and trying of situations. In the process, we provide clients with a voice and work collaboratively to position their case in the most favorable light.
Freeman Law’s Frisco tax lawyers handles matters in the United States Tax Court, the Court of Federal Claims, the Federal District Courts, and the Federal courts of appeal. We also represent clients in state court and at the administrative level.
Because of our unique substantive and procedural knowledge, our Frisco tax lawyers are able to provide a comprehensive approach to the tax dispute resolution process, often collaborating with clients’ existing tax professionals to formulate creative solutions to the most sophisticated tax problems.
We combine skillful representation in the courtroom with sophisticated tax advice, drawing on our vast tax litigation experience.
International Tax
Globalization is a fact of life in our modern economy, and cross-border activities have become the norm, not the exception. Freeman Law’s Frisco tax lawyers provide experienced counsel with respect to international and offshore tax compliance. We help clients manage, understand, and comply with the tax requirements that come with holding foreign assets; engaging in inbound and outbound cross-border transactions; maintaining ongoing business operations in foreign countries; and various other international complexities.
With recent legal developments such as the Foreign Account Tax Compliance Act (“FATCA”) and the expansion of Information Exchange Agreements among countries around the world, the flow of information and reporting to the IRS and the coordinated enforcement by taxing authorities has never been greater. For many, that means that the risks of non-compliance have never been more real. Freeman Law’s Frisco tax lawyers can help businesses and individuals manage these critical tax risks and make sense of complex international tax compliance rules.
Our Frisco tax lawyers assist clients with international information return compliance and penalties, including:
- Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations
- Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business
- Form 8938 Statement of Specified Foreign Financial Assets
- IRS Form 3520 Reporting Transactions with Foreign Trusts and the Receipt of Foreign Gifts
- Form 3520-A, Information Return of Foreign Trusts With a U.S. Owner
- Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation
- Form 8865, U.S. Persons and Foreign Partnerships
Criminal Tax
Freeman Law’s Frisco tax lawyers represent taxpayers facing IRS criminal investigations and prosecutions. We combine unique criminal defense experience with substantive tax knowledge. We often conduct our own investigation, analyzing applicable defenses and addressing ongoing IRS investigations.
Our firm enjoys a national reputation as a distinguished criminal tax defense firm. Our Frisco tax lawyers’ legal team maintains a reputation for integrity and vigorous representations defending criminal tax prosecutions and investigations, often seeking to convince government decision-makers to decline prosecution.
The Supreme Court
The Supreme Court of the United States is the highest court in the United States’ judicial system. The Supreme Court hears cases involving constitutional challenges and other cases, including tax cases, involving statutory interpretation.
With some exceptions, the Supreme Court hears cases selectively, by granting a writ of certiorari.
Justices of the Court are appointed by the President and confirmed by the Senate for a life term referred to as “justices” and are appointed by the President and confirmed by the Senate for a life term.
Throughout its history, the U.S. Supreme Court has decided a number of landmark federal taxes cases, including:
- McCulloch v. Maryland
- Eisner v. Macomber
- Pollock v. Farmers' Loan and Trust Company
- Pollock v. Farmers' Loan & Trust Company (Rehearing)
- CIC Services, LLC v. Internal Revenue Service
- South Dakota v. Wayfair, Inc.
- Quill Corp. v. North Dakota by and Through Heitkamp
- Pollock v. Farmers’ Loan and Trust Company
- Marinello v. United States
- Cheek v. Commissioner
- Head Money Cases
- Stearns v. Minnesota
- Walz v. Tax Comm'n of the City of New York
- White Mountain Apache Tribe v. Bracker
- Allen v. Wright
- Metropolitan Life Ins. Co. v. Ward
Courts of Appeal
The U.S. Courts of Appeals have jurisdiction to review decisions from the Tax Court and the district courts in the taxpayer’s geographical residence. The United States Court of Appeals for the Federal Circuit reviews decisions from the U.S. Court of Federal Claims.
>Judgements by district courts in tax refund actions can be appealed to one of the eleven regionally-based U.S. courts of appeals or the United States Court of Appeals for the D.C. Circuit. For the Court of Federal Claims, appeals lie to the Court of Appeals for the Federal Circuit, which has national jurisdiction.
There are twelve federal circuits that divide the country into different regions. The Fifth Circuit, for example, includes the states of Texas, Louisiana, and Mississippi. Cases from the district courts of those states are appealed to the United States Court of Appeals for the Fifth Circuit, which is headquartered in New Orleans, Louisiana. Additionally, the Federal Circuit Court of Appeals has a nationwide jurisdiction over specific issues.
Our firm has litigated appellate matters in the federal courts of appeals.
The United States Tax Court
Our Frisco tax attorneys have represented taxpayers in hundreds of cases before the United States Tax Court. The United States Tax Court is an Article I court established to hear tax controversies between the Internal Revenue Service and taxpayers. The Tax Court is based in Washington D.C. and has 19 judges, providing a national forum for the resolution of tax disputes.
Congress established the Board of Tax Appeals under the Revenue Act of 1924. In 1942, the Board’s name was changed to the Tax Court of the United States,” which was later reconstituted as the United States Tax Court.
The Tax Court is established under Title 26 section 7441 of the United States Code, which provides that:
There is hereby established, under article I of the Constitution of the United States, a court of record to be known as the United States Tax Court. The members of the Tax Court shall be the chief judge and the judges of the Tax Court. The Tax Court is not an agency of, and shall be independent of, the executive branch of the Government.The Tax Court is the primary prepayment tax dispute forum and exercises nationwide jurisdiction.
The Tax Court has jurisdiction to redetermine deficiencies and overpayment in income, gift or estate taxes, and certain excise taxes of private foundations and foundation managers. I.R.C. §6213(a).
The Tax court issues several types of opinions: Bench Opinion; Summary Opinion; Tax Court Opinions; and Memorandum Opinions.
Tax Refund Suits
Our Frisco tax lawyers represent clients in tax refund suits in U.S. district court or the Court of Federal Claims. The United States district courts are the only tax trial court where a taxpayer can obtain a jury trial through a refund suit.
District courts are regional-based federal courts of general jurisdiction.
The United States Court of Federal Claims is a United States federal court with jurisdiction over monetary claims against the U.S. government and consists of 16 judges appointed for terms of 15 years. The Federal Courts Improvement Act of 1982 created the modern court.
The court has special jurisdiction under 28 U.S.C. § 1491 to hear claims for monetary damages that arise from the United States Constitution, federal statutes, executive regulations, or an express or implied in fact contract with the United States Government, most notably under the Tucker Act.
Tax Litigation Representations
- Tax Litigation; Wrongful Seizure. Recovered hundreds of thousands of dollars as lead counsel in suit against United States/IRS and Department of Justice for wrongful collection activities and seizure of assets.
- Tax Litigation; U.S. Virgin Islands. Represented client in Tax Court litigation, challenging IRS proposed assessment denying United States Virgin Islands (USVI) bona fide resident status and tax benefits; obtained concession from IRS and full tax benefits.
- IRS High-Wealth Audits; Puerto Rico. Represented client in IRS “wealth squad” (Global High Wealth Industry Group) audit involving Puerto Rico Act 20/22 benefits; obtained “no-change” audit.
- IRS Tax Representation; Puerto Rico. Represented client in challenging IRS assessment denying Puerto Rico Act 20/22 benefits; obtained reversal and removal of full assessment.
- Tax Litigation. Represented clients in proceedings to quash international tax Formal Document Requests, seeking documentation regarding foreign accounts.
- Criminal Tax Investigation; Non-Prosecution. Represented client in criminal tax referral involving allegations of income tax evasion; “killed case,” obtaining declination to prosecute client from United States Attorneys Office.
- Criminal Tax Investigation; Non-Prosecution. Represented client in criminal tax investigation by IRS Criminal Investigation Division involving allegations of income tax evasion; “killed investigation,” obtaining agreement from IRS CID not to seek prosecution against client.
- Criminal Investigation; Seizure; Non-Prosecution. Represented client under federal investigation for laundering and facilitating cryptocurrency exchanges following government seizure of cash. “Killed case,” and obtained government declination to pursue criminal charges, as well as obtained return of all seized funds.
- State Criminal Tax Investigation; Non-Prosecution. Represented client in state criminal tax investigation and obtained dismissal of charges.
- IRS “SEP” Audit/Investigations. Represented client in Special Enforcement Program (“SEP”) audit/investigation involving millions of dollars of alleged unreported income and several million dollars of unpaid tax and assessments; obtained deal to avoid criminal referral and avoidance of fraud penalties.
- IRS International Penalty Defense and Voluntary Disclosure. Represented client in IRS offshore voluntary disclosure, guiding client through an “opt out” and reducing penalties by hundreds of thousands of dollars through penalty defense.
- IRS Tax Penalty Representation. Obtained penalty abatement and removal of IRS penalties in excess of $14 million.
- Federal Tax Litigation. Represented client in Tax Court, obtaining complete removal of more than $300,000 in tax assessments.
- Innocent Spouse Relief/Penalty Relief. Obtained innocent spouse relief, removing liability for tax liabilities of more than $500,000.
- Innocent Spouse Relief/Penalty Relief. Obtained innocent spouse relief, removing liability for tax liabilities of more than $600,000.
- Innocent Spouse Relief/Penalty Relief. Obtained innocent spouse relief, removing liability for tax liabilities of more than $1,000,000.
- IRS Voluntary Disclosure/Cryptocurrency. Represent client in IRS voluntary disclosure involving multi-million-dollar cryptocurrency holdings.