Disputes with tax agencies
When the disagreement is with the IRS, the forum depends partly on whether you pay first. The Tax Court hears cases before payment once a notice of deficiency issues, while refund suits in federal district court or the Court of Federal Claims require paying and then claiming the money back. Each forum has its own procedures and precedents, and the choice can affect how quickly the case moves and who decides it. New York State disputes follow a separate administrative path through conciliation or the Division of Tax Appeals.
Tax fights between private parties
Purchase agreements for a business usually allocate responsibility for taxes from periods before the sale, and disputes arise when a later audit produces a bill. Partnership and LLC agreements may promise tax distributions or assign who controls an audit, and partners sometimes disagree about both. In divorce, spouses who filed joint returns can each be liable for the full tax, and a divorce decree assigning the tax to one spouse does not bind the IRS. Relief for an innocent spouse is a separate IRS process from the divorce case itself. These disputes are decided under contract or family law, but the tax analysis often drives the money involved.
Getting the facts in one place
Bring the agreements that address taxes, the notices or audit reports involved, the returns at issue, and correspondence among the parties. Indemnity clauses often require prompt notice of a tax claim and may give one side control over the contest, so reading them early can preserve rights. Where a government audit is still open, how it is handled can affect the private dispute, and the reverse is also true. Statements made to the IRS by one party can surface later in the private dispute. We identify who the dispute is really with, what deadlines apply in each forum, and whether the tax and contract issues should be handled together.
