Tax Controversies:   IRS Bank Levies, Tax Liens, Wage Garnishments, Offers in Compromise, Installment Payment Plans, Appeals

The firm represents business and individual taxpayers alike in tax controversies with the Internal Revenue Service and Colorado Revenue Department.   This usually involves taxpayers who owe taxes but can’t pay, who are now receiving notices threatening a wage garnishment, bank account levy or the filing of tax liens.   Garnishments and levies disrupt finances, while tax liens can encumber the refinancing of mortgages or the sale of assets.   The firm assists taxpayers in stopping the garnishments and levies and in releasing property from tax liens where possible and in resolving the tax dispute underlying the tax collection activity.

Resolving Unpaid Income Taxes Through Bankruptcy

Some income tax obligations can be eliminated through a bankruptcy discharge.   This is one of several options available to qualifying taxpayers.

Audits:  IRS Audits; Colorado Department of Labor and Employment Audits; Workers Compensation Insurance Audits (Pinnacol)

Underhill & Underhill, P.C. represents individuals and businesses in government audits, whether they be tax audits, unemployment insurance tax audits, workman’s compensation insurance audits, or sales or use tax audits.  The firm also represents business owners who are confronted with claims for payment of employment taxes, workman’s compensation insurance taxes, sales taxes and other types of taxes and fees.   The firm’s attorneys assist business owners with problems when they arise in these areas, but the firm can also review your business operations and tell you in advance how to lower your risks of tax problems and tax audits. 

Are Workers Independent Contractors or Employees?

One of the audit priorities during a government audit of a business is determining whether independent contractors should be reclassified as  employees.   Both federal and state taxing authorities audit for compliance with the independent contractor rules.   The firm’s attorneys assist businesses in preparing for an audit, and, for businesses who want to avoid all problems, they can review your business operations and advise you whether you need to implement better agreements and procedures. 

Criminal Tax Investigations and Prosecutions

Jim Underhill became familiar with the government’s investigative and prosecutorial powers, procedures and priorities during his years as a criminal tax prosecutor with the Tax Division of the U.S. Department of Justice.  Drawing upon this experience, the firm represents clients who are the targets of an IRS audit or criminal investigation or who are concerned that they may become a target.

Taxation of Settlements and Litigation

Underhill & Underhill, P.C. advises plaintiffs and plaintiffs’ lawyers on the proper tax treatment of recoveries and settlements obtained through litigation.   Not all recoveries and settlements represent taxable income to the plaintiff or can be deducted by the defendant.   It is hardly a good idea to settle a personal injury case or an employment discrimination case and then end up paying taxes to the attorney and the tax collector when you might not have had to do so – yet that happens all too frequently.   It is similiarly aggravating to settle a business dispute and then find our that the settlement payment is not a valid tax deduction.   The firm’s tax attorneys can assist clients in analyzing the tax issues before finalizing a settlement.