A note from your lawyer can save you from harsh penalties and even criminal proceedings when you are unsure about a tax position. At Abajian Law, we have written Circular 230 Opinions regarding the taxability of many settlements including a highly technical multi-million dollar precedent setting California Supreme Court Case. At Abajian Law, we do not assist taxpayers in taking fraudulent or negligent tax positions, but we can assist taxpayers who need further assurances of a legitimate tax position when the circumstances of a situation may otherwise leave a taxpayer overpaying the government. In other instances, taxpayers cannot move forward with a court settlement, a negotiation, a contract, or a business plan without written tax advice. In some cases it could be negligent or a breach of fiduciary duty for a business professional not to obtain written tax advice from a professional.
A savvy taxpayer can mitigate their risks with a Circular 230 Opinion from a tax professional. When a taxpayer attains written advice from a tax professional, the professional assumes risk of professional sanctions including disbarment and monetary reimbursement, essentially the risk of genuinely being unsure is passed along to the tax professional in most instances. IRS Circular 230 Regulations for Written Advice allows uncertain taxpayers to seek and rely on written advice, At Abajian Law we have successfully provided the assurances business people need to make legitimate and lawful decisions that have been upheld by the IRS. Other times we have provided advice that can dissuade a taxpayer from making huge mistakes that can devastate their businesses or accumulated wealth.