Represented taxpayers in Tax Court matter involving a proposed tax deficiency of $77,000 plus multiple penalties totaling $32,000. After the taxpayers questioned their representatives advice to pursue trial, ATL was engaged with less than 45 days remaining prior to trial. ATL quickly stabilized the litigation by proactively pursuing settlement with the reasonable IRS attorney, whom the prior representative had infuriated with nonsensical legal arguments.
In two weeks, ATL was able to settle the case with a mere $12,000 tax deficiency and nominal penalties stemming from the tax return preparer’s actions. Overall, the taxpayers saved well over $90,000 in tax, penalties and interest, and upwards of $20,000 in litigation costs.