Hanover Tax Litigation Lawyer
Tax litigation is stressful and costly. In general, litigating a tax matter – whether in the United States Tax Court, a federal district court, or in state courts – should be a last resort option. The majority of federal and state tax controversies can, and should be, resolved in examination or administrative appeals; however, circumstances can arise where guidance from our Hanover, MD tax litigation lawyer, becomes necessary.
Both the federal and state governments have created separate and distinct courts with various unique procedural rules. For instance, the United States Tax Court allows a forum for matters before tax payment, whereas other courts only provide post-payment (or refund) jurisdiction. The United States Tax Court only has jurisdiction over tax matters and, as such, its judges have more expertise in handling this subject matter. Even so, tax litigation can still be complicated and expensive. Taxpayers seeking relief in the United States Tax Court should do so only with the help of experienced and competent legal counsel.
The United States Tax Court consists of 19 judges appointed by the President. While it is headquartered in Washington, D.C., judges traveling to local district courts hear cases throughout the country. For the United States Tax Court to have jurisdiction over a matter, a taxpayer must generally have received a Notice of Determination or Notice of Deficiency from the Internal Revenue Service. Further, to have a case heard, a taxpayer must file a petition with the United States Tax Court in the prescribed period. A petition must generally be filed within 90 days of its issuance for Notices of Deficiency. As a result of the specific procedural requirements and the often-complicated subject matters involved, promptly contacting an experienced tax court litigator is always recommended.
Typical disputes heard by the United States Tax Court include, but are not limited to:
- Adjustments to tax returns filed by corporations, limited liability companies, partnerships, estates, and other entities
- Challenges relating to amounts stated on a Notice of Deficiency or other final tax determinations
- Disputes relating to audit and collection matters involving the Internal Revenue Service
- Collection Due Process proceedings and claims for innocent spouse relief
- Worker classification status (employee vs. independent contractor)
Most states have created administrative agencies or tribunals dedicated to rendering decisions involving state tax disputes. The Maryland Tax Court has jurisdiction over most of these matters in Maryland. For the Maryland Tax Court and other similar state courts to hear such issues, all administrative remedies, such as appeals to the Hearings and Appeals Office of the Comptroller or the Property Tax Assessment Appeals Board, must generally be exhausted. Much like in the United States Tax Court, a timely petition must be filed after receiving a determination from the relevant governmental authority. Typical state tax issues litigated in Maryland Tax Court and other similar state courts include:
- Sales and use tax disputes
- Income tax disputes
- Admissions and amusement tax disputes
- Appeals of real and personal property tax assessments
- Disputes involving officer liability for sales and use tax or withholding tax
The professionals at Crepeau Mourges routinely litigate matters before the United States Tax Court, other federal district courts, and related state courts and tribunals. If you have received a Notice of Deficiency, Notice of Determination, or similar notice, or otherwise have a matter incapable of resolution with the Internal Revenue Service or state taxing authorities, please get in touch with the professionals at Crepeau Mourges for a consultation.
Why Hire a Tax Lawyer
As a tax litigation lawyer Hanover, MD depends on can attest dealing with tax issues involving the IRS can be a complex process. When people set out to complete their tax returns or start their own business, chances are they weren’t looking to create problems with the IRS. Unfortunately for many, small errors can result in big headaches, are often costly, and may even involve litigation. Typically for business owners, it’s in their best interest to consult with a law firm like Crepeau Mourges for tax guidance when forming and operating a business. Hiring a tax lawyer can be worth its weight because they can help provide counsel to avoid potential problems later on. Additionally, should the IRS become involved and litigation becomes a necessary next step, a lawyer will have the ability to provide reliable and experienced representation aimed at reaching a favorable resolution.
Here are some key reasons business owners should consider hiring a tax lawyer:
An Intimate Understanding of Tax Laws
Experienced tax attorneys have extensive knowledge of tax laws. It’s important to know that these laws are ever-changing. Additionally, some tax laws can be unclear, and lawyers must rely on the outcomes of past legal proceedings for interpreting tax law. While the IRS outlines tax law, the court is responsible for interpreting it, and at times, the two don’t always align. Additionally, tax lawyers can review the details of a business and advise on measures that can mitigate any issues with the IRS that could arise.
Fewer Mistakes
Most people don’t intentionally make mistakes that get them into hot water with the IRS. Often, business owners unknowingly make decisions or mistakes that result in audits or worse. With an experienced Hanover, Maryland tax litigation lawyer, the likelihood of this occurring is much lower. Business owners can have confidence in knowing they have made savvy tax decisions for their business.
Professional & Reliable Counsel
A professional and reliable lawyer will assist business owners in making tax decisions that are for the good of their businesses. Owning a business requires more than a good idea or keen business sense. Owning a business will also involve tax planning and ensuring that the proper taxes are paid, and tax guidelines are followed. Having an experienced and dependable lawyer available can assist with answering questions, providing guidance, and even legal representation for litigation purposes when necessary.
Assistance with State & Local Taxes
Federal taxes are just one component of taxes; business owners will be held to state and local taxes as well. It’s essential to be aware that state taxes can vary depending upon the state. If the business operates across state lines, it will be essential to have a lawyer who can help strategize and ensure that taxes are paid following state laws.
Help with Business Formation
One of the most important decisions business owners can make is the type of business formed for the company. Every kind of formation offers different advantages, and it will be essential to choose the appropriate type based upon the nature of the business, legal liabilities, and more. It’s vital to understand the tax obligations for each type of formation. For example, sole proprietorships, LLCs, and partnerships are not subject to double taxation, while other business formations may be.
Find the Right Representation
While there is a cost associated with retaining a qualified lawyer to represent business owners with their business and tax needs, it’s too risky to forgo their services. Business owners put so much into forming and operating a successful business; however, making tax mistakes can be costly and even impact the success of a business. Working with a law firm like Crepeau Mourges can assist business owners in developing a business that can thrive for many years to come. Learn more by scheduling a consultation with a Hanover, MD, tax litigation lawyer.
5 Common Types of Cases a Tax Litigation Lawyer Handles
If you’re looking for the help of a Hanover, MD tax litigation lawyer then it’s important to understand the types of cases they typically handle. In case you did not know, a litigation lawyer is a type of attorney who represents clients in civil disputes. Litigation lawyers are often involved in cases that involve contracts, property damage, negligence, and other related matters. From disputes between businesses to contract disagreements, the experienced team of litigators at our law firm can provide the legal assistance you need to resolve your case; contact Crepeau Mourges today for help!
1) Class Action Lawsuits
A class action lawsuit is a legal action brought by one or more individuals, on behalf of a larger group or “class” of people. This type of lawsuit is often used when there are a large number of people who have experienced similar harm. When one person brings a case on behalf of everyone in the class, it allows all the parties to band together and seek justice as a group. In a class action lawsuit, the court can award monetary damages and other relief to everyone who was harmed by the same event or action. The most common class action lawsuits involve defective products, deceptive marketing practices, employment discrimination, and consumer fraud. Awards from these sorts of lawsuits may involve tax issues, which is why you might need a tax litigation lawyer.
2) Contract Disputes
Contract disputes are a common occurrence in business and can involve any type of agreement, from employment contracts to leases. These disputes typically arise when one party fails to live up to the terms of an agreement or when there is a disagreement over the interpretation of an existing contract. When this occurs, litigation lawyers are called in to help resolve the dispute.
Tax litigation lawyers in particular handle contract disputes that involve taxes, such as tax preparation contracts and disputes with the IRS. These lawyers are well-versed in complex tax regulations, ensuring they provide their clients with the best possible legal advice. Tax litigation lawyers also have the ability to negotiate with the IRS on behalf of their clients, which can often help reduce the amount of taxes due or eliminate penalties.
3) Intellectual Property Disputes
A tax litigation lawyer may become involved with intellectual property disputes, which involve rights to creations of the mind, such as trademarks, copyrights, patents, trade secrets and designs. Intellectual property disputes often involve complex legal issues and require specialized expertise. In some cases, a tax litigation lawyer may need to litigate on behalf of clients to prevent or defend against the infringement of their intellectual property rights; if someone is infringing on your intellectual property and gaining money from it, you will need to get a tax lawyer involved to help.
4) Partnership Disputes
Partnership disputes involve disputes between members of a business partnership. These disputes can arise due to mismanagement of finances, unequal contributions of capital or labor, disagreements over the direction of the business, and other matters. A tax litigation lawyer can help a partner resolve a dispute through negotiation and mediation. If the parties are unable to agree on a resolution, they may have to take the matter to court. A lawyer can also provide guidance on how to set up and operate a partnership in accordance with local and state laws with regards to taxes.
5) Shareholder Derivative Suits
Shareholder derivative suits are civil legal claims brought by one or more shareholders on behalf of the corporation. The suit is meant to resolve issues of corporate misconduct, mismanagement, and fraud, which could harm the corporation and its shareholders’ investments. In these cases, shareholders are permitted to bring a claim against the corporation’s directors, officers, and other agents who may have acted wrongfully in the best interests of the company. These suits help protect the company’s assets and shareholders’ investments by forcing accountability on those responsible for illegal actions. For example, if someone knows a company is committing tax fraud, then it is time to contact an attorney.
If you need the help of a Hanover tax litigation lawyer, contact one today at Crepeau Mourges.
