We don’t often handle tax audits; the client’s accountant is usually able to handle them. But we are available for consultation in an audit and, in a given case, to represent the client in the tax audit.
Upon completion of a tax audit, if the client is not satisfied with the result, we would talk with the tax examiner’s manager, to explore any possible means of resolving the case. If the case remains unresolved, we would exercise the client’s right to Internal Revenue Service Appeals Office review of the case.
We have had a great deal of success resolving cases to the client’s satisfaction in the IRS Appeals Office. Proceedings in the IRS Appeals Office are quasi-judicial. IRS Settlement Officers consider the taxpayer’s rights as well as litigation risks. Settlement Officers have broad settlement authority. They consider legal arguments. They often concede penalties as a bargaining chip.
The rare case that cannot be resolved in the IRS Appeals Office proceeds to litigation, in U.S. Tax Court, U.S. District Court, or the U.S. Court of Federal Claims. In one of those forums, we would have one more opportunity to settle the case, with IRS counsel if the case is in U.S. Tax Court, or with an Assistant U.S. Attorney if the case is in U.S. District Court or the U.S. Court of Federal Claims.