Legal tax disputes that occur between those who collect taxes (such as the Internal Revenue Service) and the taxpayers, almost because of audit issues, are called tax controversies. Tax disputes and controversies almost always require tax lawyers with good court skills. Tax lawyers help settle these legal issues by offering services such as audit assistance, mediating settlements, and negotiating with the IRS or other tax-collecting agents.
Companies may have a lot to lose, particularly in their financial and reputational risks, if tax controversies are not managed with dedication. With the globalization and financial crises going about affecting every type of businesses (along with the complexities that business models are thrust to), the threats and dangers of tax controversies have also significantly increased. Studies even cite that tax controversies among companies and the revenue authorities are on a record high. Companies are encountering aggressive and frequent audits from tax authorities that many companies are becoming upset.
Because of such risks involved in doing business and the dangers that they can fall into when tax controversies come up, many businesses have aggressively designating tax experts or lawyers whose specialties lie on tax controversies. As the government, specifically tax authorities, strongly insists on companies to pay a critical percent of their profits, these companies are getting more and more unsettled with the pressure. More and more companies are adopting a defensive position, since they are not ready to accept their circumstances as ruled by the tax authorities.
As the measures of enforcement and transparency increase, the need for experts on tax controversies becomes more and more clear as they are vital in guiding the companies through the basic processes necessary for their business. They are also an advantage when challenges come up. Their knowledge can do a lot to help businesses emerge from taxation issues with as little harm done as possible.