Jared Slipman, one of Obermayer’s tax attorneys, successfully represented a large home health care company in multiple IRS proceedings. The company faced civil penalties for failure to file 2014 returns, a 2020 employment tax audit, and $4.6 million in penalties and interest for failure to file various returns from 2018 through 2021.

The IRS had two revenue officers involved, one overseeing the employment tax audit and the other managing the civil penalties cases.

The core issue in the employment tax audit was the IRS’s assertion that the client had improperly classified hundreds of W-2 employees as 1099 contractors to avoid withholding obligations. Jared’s defense convinced the IRS to close the audit with no changes, saving the client hundreds of thousands of dollars. Jared was also able to successfully negotiate an abatement of penalties stemming from the missing 2014 tax filings on the basis of insufficient evidence and statute of limitations arguments.

In relation to the $4.6 million penalty dispute, Jared’s negotiations resulted in a full waiver of all penalties. Jared’s approach included submitting multiple explanatory memoranda while also proceeding with a collections appeal overseen by a separate appeals officer, ultimately leading to a complete penalty waiver after negotiations with both the revenue officer and the collections appeal officer. The entire process took around six months to resolve.

Thanks to Jared’s efforts, the client not only avoided significant financial liability but also received a $2,000 refund for interest paid on the abated civil penalties.

Jared routinely defends corporate clients before the IRS, both in connection with transactional matters and in the event of an IRS contest. If you have questions about the possibility of an audit, have been contacted by the IRS asserting fines or penalties, or are in need of tax guidance, you can reach out to Jared Slipman.