Tax Controversy Attorney

Tax controversy is any dispute between a taxpayer and the IRS or a state taxing authority, including audits, collections, appeals, litigation, and criminal investigations.

Milton Law Group represents individuals and small business owners in these disputes nationwide, led by Mark C. Milton, a former U.S. Department of Justice Tax Division trial attorney who once represented the IRS in federal courts across the country.

Today, he uses that inside knowledge of how the government builds and resolves tax cases to guide taxpayers through the same process from the other side of the table.

How Milton Law Group Helps Taxpayers

Milton Law Group provides candid, upfront advice about what can and cannot realistically be done in a tax matter, then represents clients through the appropriate IRS or state process. Because that representation comes from a licensed attorney, it carries the confidentiality and protection of the attorney-client privilege, a protection that non-lawyer “resolution” companies cannot offer.

• Unfiled returns and back taxes: a phased approach to getting compliant and resolving what’s owed
• IRS and state tax debt: collection alternatives including offers in compromise, installment agreements, penalty abatement, and currently-not-collectible status
• Audit defense and appeals: representation before IRS examiners, the IRS Office of Appeals, and the courts
• Federal and state tax litigation: U.S. Tax Court, U.S. District Court, and U.S. Bankruptcy Court
• Employment and payroll tax matters: including trust fund recovery penalty and worker-classification disputes
• Criminal tax defense: for taxpayers contacted by IRS Criminal Investigation

“Some of my greatest client success stories are the ones you don’t read about in the newspaper.” Mark C. Milton, Esq., Founder and Managing Attorney

Mark Milton began his career with the U.S. Department of Justice, Tax Division, in Washington, D.C., representing the IRS in tax disputes throughout the country. In 2014 he returned to the Midwest and focused his practice on helping individuals and small business owners with difficult tax problems. His clients have included other attorneys, CPAs, professional athletes, entertainers, and C-suite executives. Milton Law Group’s tax professionals also help clients avoid problems before they start, through year-round tax planning and year-end return preparation.

Areas We Handle

Jump to a topic:

• Unfiled Tax Returns
• Resolving IRS & State Tax Debt
• Audit Defense & Appeals
• Tax Litigation
• Employment & Payroll Taxes
• State & Local Tax (SALT) Matters
• Preparer Penalties & Injunctions
• Professional Malpractice
• IRS Whistleblower Awards
• Criminal Tax

Unfiled Tax Returns

If you have years of unfiled tax returns, the safest path is to get compliant in an organized, phased way rather than filing blindly or waiting for the IRS to act first. Milton Law Group tax attorneys represent clients with years of unfiled returns and use a comprehensive, phased approach to resolving past tax issues.

Unforeseen life events (a lost job, an illness, the death of a loved one, or a divorce) can cause someone to miss a single filing year, which then snowballs into several years and mounting tax debt. That can produce paralyzing fear over not knowing what to do, where to turn, or how to make it right.

• Phase I, Compliance review and investigation. A detailed review of your tax history, including income tax account transcripts and public records, to determine which years must be filed and whether any taxing authority has already begun pursuing you.
• Phase II, Return preparation. Preparing all required returns, either in-house with the firm’s tax professionals or in coordination with your preferred preparer.
• Phase III, Collections. Resolving whatever is owed through the collection alternatives offered by the IRS and state taxing authorities, including offers in compromise, penalty abatement, installment agreements, and currently-not-collectible status.

Whatever the situation, the firm builds a customized strategy for resolving the client’s tax issues, all under the confidentiality and protection of the attorney-client privilege that comes with hiring a tax lawyer. For a step-by-step overview, see our guide on how to catch up on unfiled tax returns.

Resolving IRS & State Tax Debt

Most tax debts are resolved through one of a handful of collection alternatives the IRS and state taxing authorities offer, not through a dramatic one-time settlement. Milton Law Group gives clients and prospective clients a candid assessment of their situation and a realistic view of the likely outcome before recommending a path.

The advertisements you hear on the radio and see on TV from non-lawyer “resolution” companies, promising to settle tax debts for a small fraction of what’s owed, grossly exaggerate how readily the IRS accepts a reduced settlement. It is not a realistic outcome for the vast majority of taxpayers. The firm opines on the likelihood of any result only after a thorough review of the client’s specific circumstances, and then pursues every option allowed under the law to minimize the client’s tax burden. (For a fuller comparison, see tax attorney vs. tax resolution company.)

Collection alternatives the firm pursues include:

• Offer in compromise: settling a liability for less than the full amount when the taxpayer genuinely qualifies
• Installment agreement: a monthly payment plan with the IRS or a state
• Penalty abatement: removing or reducing penalties where grounds exist
• Currently-not-collectible status: pausing collection when a taxpayer cannot pay

Audit Defense & Appeals

In a high-stakes IRS or state audit, representation by a licensed tax attorney is recommended because the attorney-client privilege lets you speak candidly without fear that your words could later be used against you. Milton Law Group has extensive experience representing individuals and small businesses in audits by the IRS and state taxing authorities.

Taxpayers often rely on the person who prepared the return to represent them in an audit. That can be a problem for several reasons:

• Conflict of interest. A preparer who did something with the return they hope to conceal has an incentive that may not align with the client’s.
• A lost defense. One potential defense in an audit, or a criminal investigation, is that the preparer is responsible for errors, omissions, or fraud. If the preparer is the one representing the client, the IRS may never hear that defense.
• Limited remedies knowledge. Preparers and CPAs are often not experienced with the different forums and remedies available to challenge audit findings.

When necessary, the firm has the experience to challenge the IRS’s proposed audit adjustments before the IRS Office of Appeals, the U.S. Tax Court, and the federal courts, and has done so successfully for many clients.

Tax Litigation

When a tax dispute cannot be resolved administratively, choosing the right litigation forum is often decisive, and it takes an attorney who understands how each one works. As a recipient of the U.S. Department of Justice Tax Division’s Outstanding Trial Attorney Award (2014), Mark Milton litigated complex tax matters in federal district courts nationwide before moving into private practice.

Milton Law Group has experience litigating tax matters in the U.S. Tax Court, U.S. District Court, and U.S. Bankruptcy Courts. That firsthand knowledge of how the government approaches tax litigation, how “the other side of the table” operates, is valuable in challenging unjust IRS actions.

Representative Litigation Experience

• Lead counsel in an employment tax refund suit brought by an accountant assessed trust fund recovery penalties; obtained a jury verdict against the accountant for the full assessment amount.
• Lead counsel in a lien-priority dispute with medical service providers; prevailed on summary judgment.
• Lead counsel in a foreclosure action against a Kansas City salvage yard owner; resulted in a $220,000 settlement, fully paid.
• Lead counsel in a wrongful levy action brought by a Minnesota bank after the IRS levied $90,000 in escrowed funds; prevailed on cross-motions for summary judgment.
• Lead counsel in a fiduciary liability action against the personal representative of an estate for failing to pay a decedent’s tax debt while administering the estate.
• Co-counsel in the first-ever injunction action referred by the IRS Large Business & International (LB&I) Division, concerning Distressed Asset Debt (DAD), Distressed Asset Trust (DAT), and §743(f) tax shelters that allegedly produced more than $370 million in fictitious losses across hundreds of taxpayers and witnesses in the United States, Brazil, and Switzerland; full concession by all defendants.
• Co-counsel in the first-ever injunction action brought under the Internal Revenue Code against a real estate appraiser, involving the appraisal of historic-preservation easements on landmark properties; full concession by all defendants.
• Lead counsel in nationwide injunction actions against alleged tax shelter promoters and fraudulent return preparers, including permanent injunctions against preparers in the Washington, D.C. suburbs, a firm represented by a global D.C. law firm, a disbarred attorney, the promoter of a corporation-sole tax-fraud scheme, and a preparer who allegedly failed to exercise due diligence on returns claiming the Earned Income Tax Credit. In one matter, St. Louis preparers consented to a permanent injunction on the eve of an evidentiary hearing; in another, the firm conducted an evidentiary hearing with more than 10 witnesses against a Philadelphia preparer, obtained a preliminary injunction, and the defendant later consented to a permanent injunction and was ultimately convicted of preparing false returns.

Results depend on specific facts. Past results do not guarantee future outcomes.

Employment & Payroll Taxes

If your business is behind on payroll taxes, you may face personal liability, even prison, because the IRS and DOJ Tax Division have significantly stepped up payroll tax enforcement. The government can impose severe civil and criminal penalties on those who fail to withhold, account for, and turn over payroll taxes.

Owners and employees of a business that fails to pay employment taxes can be held personally liable under the “trust fund recovery penalty.” That liability can reach hundreds of thousands of dollars, sometimes millions, often cannot be discharged in bankruptcy, and can lead the IRS to foreclose on personal assets to satisfy the debt.

Milton Law Group’s tax lawyers have also represented clients, including publicly traded companies, in employee classification audits, where the IRS challenges a worker’s independent-contractor status and seeks additional employment taxes and penalties.

State & Local Tax (SALT) Matters

State and local governments have grown far more aggressive in tax assessment and collection as budgets tighten, and their audits can carry consequences as serious as a federal matter. Milton Law Group has extensive experience representing clients before state and local taxing authorities in income tax, sales tax, personal property tax, property tax appeals, and employment tax disputes.

Representative SALT matters include:

• Sales and use tax audits
• Worker-classification disputes, where a state department of revenue seeks to reclassify independent contractors as employees and impose large payroll taxes and penalties
• Property tax assessment challenges
• Criminal personal property tax evasion cases, for example, where clients are alleged to have licensed vehicles in other states to evade personal property tax
• Residency challenges for state income tax, such as when a state targets “snowbirds” claiming residency in no-income-tax states like Florida

Preparer Penalties & Injunctions

Tax return preparers can face severe IRS penalties, and even a permanent DOJ injunction barring them from the business, for improper conduct. Milton Law Group has extensive experience representing preparers in IRS and DOJ civil penalty and injunction actions, including matters involving “due diligence visits” and alleged abuse of refundable credits such as the Earned Income Tax Credit (EITC).

Professional Malpractice

If a CPA or tax professional’s negligence, recklessness, or fraud has exposed you to significant tax liability, you may be able to recover damages, and, in some cases, a whistleblower award. As a DOJ Trial Attorney, Mark Milton pursued fraud cases against unscrupulous preparers, CPAs, and lawyers whose conduct exposed their clients to millions of dollars in potential liability and even criminal prosecution.

If you have been mistreated, neglected, or defrauded by a tax professional in the preparation of your returns, the sale of a tax shelter, or the promotion of an illegal tax scheme, the firm can help you pursue recovery and accountability, for yourself and others affected.

IRS Whistleblower Awards

Under the IRS Whistleblower Program, the IRS must pay an award to anyone who provides specific and credible information that substantially leads to the collection of $2 million or more in tax, penalties, and interest. The award can reach up to 30% of the amount the IRS collects based on the whistleblower’s information.

The stakes can be substantial: in 2012, the IRS paid a $104 million award to the whistleblower in the tax evasion case involving Swiss bank UBS, for information about offshore tax evasion. Milton Law Group can help evaluate a potential claim and guide a whistleblower through the process.

Criminal Tax

If an IRS Criminal Investigation (CI) special agent contacts you, or you receive a summons or grand jury subpoena, you should speak with a tax attorney immediately, even if you don’t believe you are a target. As the saying goes, anything you say can and will be used against you.

IRS CI works with agencies including the FBI, DEA, and U.S. Postal Inspection Service to build criminal cases. Many federal crimes (embezzlement, fraud, drug trafficking, securities violations, organized crime) carry corresponding criminal tax implications (as they did, famously, for Al Capone). Investigations may proceed administratively through CI special agents using techniques like surveillance and witness interviews, through formal summonses, or through grand juries overseen by DOJ Tax Division prosecutors and U.S. Attorney’s Offices.

Because the DOJ Tax Division must approve any criminal charge brought under the Internal Revenue Code, having a defense attorney with DOJ Tax experience can be critical. Before charges are filed, the DOJ Tax Division typically offers the target’s attorney a conference with the assigned prosecutor to argue against charges, a crucial opportunity to prevent an indictment from ever being brought. The firm has successfully made that case for clients at this stage.

Criminal tax cases arise in many ways: a civil audit in which the agent comes to believe fraud occurred, a whistleblower such as a disgruntled employee or ex-spouse, or another investigation that turns up evidence of a tax crime. It is a costly and extremely stressful experience, and the firm works to achieve the most favorable outcome the facts allow for clients facing investigation or prosecution.

Frequently Asked Questions

What is a tax controversy attorney?

A tax controversy attorney represents taxpayers in disputes with the IRS or state taxing authorities, including audits, collections, appeals, litigation, and criminal investigations. Unlike a non-lawyer “resolution” company, an attorney is licensed, bound by ethical rules, and able to extend the attorney-client privilege to protect confidential communications.

Do I need a tax attorney for an IRS audit, or can my CPA handle it?

A CPA can often handle a routine audit, but a licensed tax attorney is recommended in high-stakes audits or where fraud may be alleged. Only an attorney can extend the attorney-client privilege, and a preparer who represents you in an audit may face a conflict of interest, and may prevent the IRS from hearing a defense that points to preparer error.

Can the IRS hold me personally liable for my business’s unpaid payroll taxes?

Yes. Under the trust fund recovery penalty, the IRS can impose personal liability on the owners or employees of a business that fails to pay employment taxes. That liability can reach hundreds of thousands of dollars, often cannot be discharged in bankruptcy, and can lead the IRS to foreclose on personal assets.

What should I do if an IRS Criminal Investigation agent contacts me?

Contact a tax attorney immediately and avoid speaking with the agent until you have counsel, even if you don’t believe you’re a target. IRS CI special agents typically travel in pairs, and anything you say can be used against you. An attorney with DOJ Tax experience can often argue against charges before an indictment is ever brought.

Are my conversations with a tax attorney confidential?

Yes. Hiring a licensed tax attorney extends the attorney-client privilege to your communications, allowing you to speak candidly about your situation without fear that your words could later be used against you. Non-lawyer “resolution” companies cannot offer this protection.

Can I really settle my tax debt for a fraction of what I owe?

Rarely. An offer in compromise allows some taxpayers to settle for less than the full amount, but it is only available to those who genuinely qualify, and the outcomes advertised by non-lawyer companies are not realistic for most taxpayers. A candid, upfront assessment of what is actually achievable in your situation is the responsible starting point.

About Mark C. Milton

Mark C. Milton is the Founder and Managing Attorney of Milton Law Group. A former U.S. Department of Justice Tax Division Trial Attorney recruited through the Attorney General’s Honors Program, Mark received the DOJ’s Outstanding Trial Attorney Award in 2014. He brings nearly two decades of combined experience in tax controversy, federal litigation, and accounting, having previously practiced at an AmLaw 100 firm in St. Louis and worked at two large public accounting firms prior to law school. He earned his J.D., with Honors, from Saint Louis University School of Law and his B.S. in Accountancy, cum laude, from the University of Illinois at Urbana-Champaign, and is admitted to practice in Missouri, the District of Columbia, Illinois, and Florida.

Schedule a Consultation

Contact the IRS Problem Solvers at Milton Law Group to schedule a paid privileged consultation by calling 833-LAW-1040 or at miltonlawgroup.com/schedule-now.

This page is provided for general educational purposes and is not legal advice. Every tax matter turns on its specific facts; consult a licensed attorney about your situation. Results depend on specific facts, and past results do not guarantee future outcomes.