Tax Controversy and Litigation

Overview

A tax controversy with the Internal Revenue Service (IRS) can take a business or individual through complicated and challenging stages: administrative audits, appeals, post-appeals mediation, and litigation in federal court. BakerHostetler is a valuable partner throughout every step of the intricate legal processes and we are focused on ensuring client resources are focused on favorable, cost-effective outcomes.

Our team analyzes each unique situation at the onset, and develops strategic responses and solutions based on our extensive experience and keen understanding of tax laws and the tax controversy process. Our goal is to resolve a client’s case at the earliest possible point while securing the best possible settlement. BakerHostetler possesses the skills necessary to negotiate a settlement, as well as the experience and foresight to position the matter for litigation when required.

Clients benefit from the extensive background and experience our lawyers bring from former positions at the U.S. Department of Justice, U.S. Tax Court, U.S. Department of the Treasury, as well as private industry. We have built strong working relationships with the IRS that have helped us to obtain favorable and fair settlements on behalf of many of our clients. Our firm’s extensive tax litigation experience has enabled us to achieve precedent-setting victories in several litigations over the years.

Select Experience

  • Worked on behalf of a health care equipment manufacturer to obtain an IRS concession on a $56 million international worthless stock deduction.
  • Secured a $326 million settlement with the IRS on behalf of the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC.
  • Litigated an interior and exterior conservation easement matter on behalf of a developer before the U.S. Tax Court. This interior conservation easement matter was the first of its kind.
  • Represented multiple taxpayers before various federal courts relating to the treatment of severance payments.
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Professionals

Name Title Office Email
Of Counsel Denver
Partner New York
Counsel Denver
Partner Cleveland
Partner Philadelphia
Associate Columbus
Associate Cleveland
Partner Washington, D.C.
Partner Columbus
Staff Attorney New York
Partner Washington, D.C.
Partner Cleveland
Partner Cleveland
Partner Orlando
Partner Washington, D.C.
Partner New York
Partner Denver
Partner Cleveland
Associate Costa Mesa

Experience

  • Worked on behalf of a health care equipment manufacturer to obtain an IRS concession on a $56 million international worthless stock deduction.
  • Secured a $326 million settlement with the IRS on behalf of the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC.
  • Litigated an interior and exterior conservation easement matter on behalf of a developer before the U.S. Tax Court. This interior conservation easement matter was the first of its kind.
  • Represented multiple taxpayers before various federal courts relating to the treatment of severance payments.
  • Acted as counsel to The Lincoln Electric Company and Sherwin-Williams in litigation with respect to whether severance payments due to involuntary workforce reductions qualify as wages for FICA purposes, similar to the Quality Store case.
  • Obtained a 100 percent concession on a debt/equity characterization issue on behalf of a private equity fund.
  • Served as counsel to 26 states in federal courts regarding the constitutionality of the federal health care mandate.
  • Negotiated a 90 percent concession by the government with respect to a complex effectively connected income issue on behalf of a foreign-state owned bank.

Recognition

  • Chambers USA:
    • Tax in the District of Columbia (2010 to 2017)
    • Recognized Practitioner: Nationwide Tax Controversy (2014 to 2017)
  • BTI Client Service 30: BakerHostetler advanced 19 positions to #9 (2016)
  • U.S. News - Best Lawyers "Best Law Firms" Litigation - Tax (2016)
    • Nationwide Tier 1
    • Metro Cleveland, Tier 2
    • Metro Denver, Tier 1
    • Metro Washington, D.C., Tier 2
  • The Best Lawyers in America© (2016)
    • 3 lawyers named in Litigation & Controversy - Tax
    • 13 lawyers named in Tax Law
  • Who’s Who Legal 2013 recognized two partners in the area of Corporate Tax.

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