TAX COURT, TAX REFUND CASES
AND OTHER IRS REPRESENTATION
Krause and Associates represents taxpayers in the Tax Court to contest over cutting edge and unprecedented issues. On account of our legal
expertise, we duly formulate new and taxpayer-friendly laws as the result. Most of the cases we file in the Tax Court, we settle primarily due to the
overly zealous auditors as well as the unreasonable position they take with taxpayers and their representative.
Our areas of experience include TEFRA partnership cases, unreported income cases where the IRS uses the net worth method to prove income,
business expense substantiation among others. We also represent diverse clients on issues ranging from suing for refunds involving IRS procedural
errors, improper loss characterization and the inappropriate imposition of penalties.
Tax planning ideally occurs as early as possible in the life cycle of a transaction. An ideal tax result requires pre-transaction positioning work which should occur prior to even putting an asset on the market. Other strategies may be implemented during the transaction process – prior to going under contract and causing the contract to contain tax favorable terms. Sometimes even the form of transaction matters and the earlier that decision is made the greater the likelihood the counterpart will agree.
Spin-Offs and Mergers
Proper positioning is valuable but does not need to be limited to taxes. If you are concerned about liability for your operating subsidiaries affecting the appreciation growth in the fixed assets of the business, we can execute a plan with you to apportion out the fixed assets into a separate chain of subsidiaries which are then spun-off in a tax-free spin-off transaction. We also represent clients who wish to merge companies – an ideal way to combine companies without having to transfer all assets and liabilities.
Buying, Selling, and Major Assets
We institute and acquire IRS tax exemption and charitable status recognition for tax-exempt and charitable entities. In 1994, our firm organized the Greater Austin Open Foundation, which for two years hosted a PGA women’s tournament, and later the Greater Austin Youth Foundation which produces the Kinko’s Classic PGA seniors tournament every spring benefiting First Tee of Austin, a PGA sponsored charity that brings golf and life lessons to underprivileged children. We establish private foundations for our clients through which they pursue their charitable interests
Occasionally, a business owner may run afoul of the IRS which threatens to liquidate their business. Where plausible, we put to service
strategies that use existing law to restrict the ability of the IRS collection division to exact payment thereby saving your business. Similarly, with our harmonious corporate and tax expertise attracts clients interested in acquisitions of targets with potential or actual tax liens. As part of our client-driven philosophy, we developed and executed a plan that preserved a local landmark restaurant which had its assets loaded down with tax liens. Another opportunity enabled us to safeguard a family construction business that was encumbered with tax liens.
We act for clients who wish to effect a sale of their business or who wish to purchase – or simply a major asset. Our transactions range from the hundreds of thousands to over $40 million. We counsel clients on the appropriate attitude required to do a deal and for early negotiations to benefit from the highest tax advantage. In some cases, early favorable tax positioning yields lucrative opportunities to trade cash for tax benefits, which the counter-party would wish to pay for.
In this area, the law has significantly evolved since 2006. Therefore, it is paramount to protect your business from risks arising from employees and co-owners involving trade secrets and other intellectual property. All these risks deserve preludial attention before a crisis occurs.
Transfer Tax Minimization, Insurance Planning,
Family Succession, Estate, Gift and GST
Compliance and IRS Disputes
Estates and Planning
Our firm’s experience with business structure accords value to our clients due to the breadth of what is possible. Together with the client, we explore the difference between a corporate or partnership merger, split up or off and spin-offs and offer the best solution.