Overview
– Legal 500 US 2024
McDermott’s Tax Controversy & Litigation Group brings extensive experience and in-depth knowledge to help clients resolve tax disputes inside and outside of the courtroom.
From the planning stages of a transaction or reorganization to any challenge brought by a taxing authority, our tax controversy and litigation lawyers are advocacy-oriented. We work with corporations, private equity funds, partnerships, and high-net-worth individuals to develop bespoke solutions that minimize risk, protect interests, and achieve the most favorable outcomes. By partnering with clients across diverse industries, including technology, energy, and life sciences, we gain deep insights into their business, enabling our tax team to strategically advise on specific disputes.
Founded almost a century ago, McDermott is one of the largest tax law practices in the United States. Our tax controversy and litigation lawyers collaborate seamlessly across our broader tax practice, as well as with the Firm’s other leading practice groups, including Private Client, White-Collar, and Supreme Court & Appellate Litigation. This integrated approach and dedication to clients’ best interests have earned our tax controversy and litigation team recognition as a leading practice by preeminent publications such as Chambers and Partners, Legal 500, and International Tax Review.
Our tax controversy and litigation lawyers represent clients in various complex matters, including:
- International tax and transfer pricing
- Corporate and partnership tax issues
- Tax credits and incentives
- Gift and estate taxes
- Excise and specialty taxes
- Criminal tax defense
- Non-US tax controversy
- State and local taxes
Tax Controversy & Litigation Capabilities
Our Tax Controversy & Litigation Group is uniquely qualified to represent you during all stages of tax disputes and, if necessary, in litigation.
Pre-Controversy Planning
Long before a tax audit begins, our lawyers work closely with clients to spot potential issues and avoid tax controversies. We advise on matters related to:
- Protecting privileges
- Return filing positions (e.g., uncertain tax positions and reserve analysis)
- Document retention
- Tax planning positions for audits
Additionally, we help secure rulings from taxing authorities, such as private letter rulings, technical advice, and other determinations, on various tax matters.
IRS Audits
We assist with all aspects of Internal Revenue Service (IRS) examinations to obtain favorable outcomes. Some of our work includes:
- Developing examination strategies
- Negotiating and drafting responses to Information Document Requests
- Asserting and defending privileges
- Resolving issues with the IRS examination team through audit strategies and presentations
Each examination has its own nuances, and our work may involve behind-the-scenes advice or directly interfacing with the IRS examination team. Our level and manner of involvement is strategic, and we address each examination as part of a holistic approach to federal tax controversy.
IRS Appeals
When tax issues cannot be favorably resolved during an examination, we represent clients before the IRS’ Office of Appeals (IRS Appeals). Our work includes:
- Drafting protests to advocate for our clients’ positions
- Conferring with IRS Appeals officers and technical specialists
- Negotiating favorable settlements
IRS Alternative Dispute Resolution Programs
We resolve matters through the IRS’ various alternative dispute resolution procedures, including:
- Fast track settlement
- Early referral to IRS Appeals
- Rapid appeals process
- Post-appeals mediation
- Industry issue resolution
We also help with seeking the assistance of the US Competent Authority for treaty disputes under the Mutual Agreement Procedures.
Tax Litigation
When settlement is not possible, we resolve tax disputes in litigation before the US Tax Court, federal district courts, the US Court of Federal Claims, and appellate courts across the country.
We have successfully litigated some of the largest and most complex tax cases in the US, including:
- “Bet-the-company” tax cases
- Cases of first impression
- Summons enforcement proceedings and disclosure actions
- Challenges to the validity of Treasury Regulations
Supreme Court & Appellate Litigation
Drawing on resources from McDermott’s renowned supreme court & appellate litigation practice, our Tax Controversy & Litigation Group offers a valuable combination of technical tax knowledge and broad appellate experience. Our tax controversy lawyers have successfully represented clients on appeal from lower court decisions in major tax cases and have participated directly in the briefing and argument of cases that are crucial to the development of tax law.
Criminal Tax Defense
We leverage our criminal tax defense experience, extensive knowledge of criminal tax procedure, and strong government connections to achieve the best possible outcome for clients in:
- Sensitive audits
- Subpoena responses
- Search warrants
- Voluntary disclosures
- Investigations
- Plea negotiations
- Trials
- Sentencings
- Appeals
Drawing on our deep understanding of the IRS and the US Department of Justice (DOJ), we proactively advise on upcoming challenges, new legislation, areas of enforcement, and emerging trends, helping our clients develop and strengthen their compliance programs and conduct internal investigations. Our team includes former trial lawyers from the DOJ, the DOJ’s Tax Division, and lawyers who have joined us from US attorneys’ offices.
