Federal Tax Refund Litigation: Disputing Tax Liability, Key Issues and Pitfalls to Avoid for Tax Counsel

Taxpayers may seek recovery of taxes in court if they are not able to come to a resolution with the IRS. Federal tax refund litigation is the legal process that allows a taxpayer to recover taxes, including penalties, that have been erroneously collected by the IRS.

The IRS has been aggressively enforcing compliance with U.S. tax rules and regulations; however, in some cases, taxpayers may challenge tax assessments in court. Federal tax refund litigation can be used to contest income tax liability, payroll taxes, estate and gift taxes, and penalties. Tax counsel and advisers must understand applicable tax rules, administrative procedures, taxpayer rights, and other key items in order to effectively represent taxpayer-clients in tax refund claims.

Listen as our panel discusses federal tax litigation, prerequisites and procedures, district court vs. Court of Federal Claims, and key areas of focus for counsel and advisers.

I. Overview of the federal tax refund litigation process

II. Administrative prerequisites

III. Choice of venue; district court vs. Court of Federal Claims

IV. Filing the claim and timing requirements

V. Best practices to succeed in federal tax refund claims

The panel will discuss these and other key issues:

• Navigating the federal tax refund controversy process
• How is refund litigation distinguishable from deficiency litigation?
• What are the prerequisites prior to and during federal tax refund proceedings?
• What are the critical challenges of federal tax litigation in both district courts and Federal Claims Court?
• Challenging the assessment of penalties

Learning Objectives

After completing this course, you will be able to:

• Understand the process of pursuing a federal tax refund against the IRS
• Identify key areas of focus when filing federal tax refund claims
• Acquire defense strategies and available tools to consider when facing tax litigation
• Identify critical challenges of federal tax litigation, the district court, and Court of Federal Claims

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules for domestic and multinational businesses; supervisory authority over other preparers/accountants. Knowledge and understanding of information filing requirements and penalties for non-compliance; familiarity with IRS processes for penalty abatement requests and civil fraud cases.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).