“What do I do Next?” A Westford, Massachusetts Tax Attorney Representing Business Owners in IRS and State Tax Controversy Matters Answers

Lau Legal Services PLLC, led by tax attorney Tim Lau in Westford, Massachusetts, represents business owners facing federal and Massachusetts tax controversies, including IRS examinations, administrative appeals, collection matters, penalties, and international tax reporting issues.

More information about the firm's tax controversy practice is available at laulegalservices.us.

Nearly 78 percent of IRS audits closed in fiscal year 2024 were conducted through correspondence rather than face-to-face examinations, according to the IRS's 2024 Data Book. For many business owners, dealing with the IRS or Massachusetts Department of Revenue isn't something they think about until a letter arrives in the mail.

Maybe the IRS is questioning something on a tax return, maybe there's an unexpected penalty, or perhaps a business owner discovers an outstanding tax balance that has grown over time. Whatever the situation, receiving a notice from a taxing authority can raise more questions than answers.

What does the government want? Is the amount correct? What happens if I disagree? And what am I supposed to do next?

These are the types of questions that Lau Legal Services PLLC, a tax controversy law firm based in Westford, Massachusetts, helps business owners navigate.

"Many tax problems start with a letter that the taxpayer doesn't fully understand," said Tim Lau, tax attorney and founder of Lau Legal Services. "The IRS speaks through notices, forms, codes, and deadlines. My job is to help clients understand what the government is asking for, what their options are, and how we should respond."

When a Tax Matter Becomes a Tax Controversy

Not every tax issue is about preparing or filing a return. Sometimes the government disagrees with what was reported. Other times, the IRS or a state tax agency believes additional taxes or penalties are owed. A business may face an examination, receive a notice proposing adjustments, or find itself dealing with an unresolved tax balance or collection action. These situations can involve questions of fact, tax law, documentation, and procedural rights.

Lau Legal Services represents individuals and businesses in federal and Massachusetts tax controversies, including examinations, administrative appeals, collection matters, and penalty disputes.

"When a client comes to me with an IRS notice, I'm not just looking at the amount the government says they owe," Lau explained. "I want to understand how we got here, what the IRS is relying on, and whether there is a basis to challenge its position."

Depending on the circumstances and scope of representation, the firm's work may include communicating with taxing authorities, evaluating proposed adjustments, reviewing supporting documentation, and advocating for clients during examinations or administrative appeals.

An IRS Audit Result Isn't Necessarily the Final Word

One common misconception is that once the IRS completes an audit and proposes additional tax, the taxpayer has no choice but to accept the result. That isn't necessarily true. Depending on the circumstances, taxpayers may have opportunities to challenge proposed adjustments through administrative appeals or other legal proceedings.

"An audit result is not necessarily the end of the case," Lau said. "If we disagree with the government's position, the next question is why. What are the facts? What does the law say? What documents support our position?"

The IRS Independent Office of Appeals provides an opportunity in qualifying cases to seek an independent review of disputed tax issues without immediately going to court. However, the available options depend on the type of dispute, the notice received, and the applicable deadlines. For business owners, understanding those options before responding to the IRS can make a meaningful difference.

Tax Problems Don't Always End With an Audit

Sometimes the dispute concerns the amount of tax owed. Other times, the issue is how an existing tax liability should be resolved. A business owner may be dealing with accumulated penalties, outstanding tax balances, a federal tax lien, or the possibility of a levy. Other controversies may involve payroll taxes or international tax information-reporting requirements, which can carry significant penalties when filing obligations aren't satisfied.

Lau Legal Services assists clients with a range of these matters, including evaluating potential collection alternatives, seeking penalty relief when appropriate, and representing taxpayers in disputes involving domestic and international tax reporting obligations.

"Every tax controversy is different," Lau explained. "Sometimes we're challenging the government's position. Other times, we're trying to resolve an outstanding liability or address penalties. The important thing is understanding the problem before deciding how to approach it."

Working Alongside CPAs and Tax Professionals

Lau Legal Services does not prepare tax returns. Instead, the firm's practice focuses on representing taxpayers when issues arise with the IRS or state taxing authorities. That distinction allows the firm to work alongside CPAs, enrolled agents, tax preparers, and bookkeepers who already have established relationships with their clients.

"A CPA, enrolled agent, or tax preparer may already be helping with the tax return, and I'm not looking to replace that relationship," Lau said. "When the IRS or a state agency starts asking questions, assessing penalties, or trying to collect, that's where I can step in as the tax attorney and work with the client and their tax professional to address the controversy."

For business owners, that means their existing tax professional can remain involved while a tax controversy attorney focuses on the dispute with the government.

Start With the Letter

Receiving an IRS or Massachusetts Department of Revenue notice doesn't automatically mean something has gone terribly wrong. But it does mean the notice deserves attention. Some notices are informational. Others request documents, propose additional taxes or penalties, or involve collection actions. Certain notices also carry deadlines that can affect a taxpayer's rights.

"The first questions I usually ask are pretty simple," Lau said. "What did they send you? What are they saying happened? And when is the deadline?"

Those questions help establish where the taxpayer stands and what options may still be available. For business owners facing an IRS or Massachusetts tax examination, appeal, collection matter, penalty, or other unresolved tax dispute, speaking with a tax controversy attorney can help clarify the situation before taking the next step.

Lau Legal Services PLLC, based in Westford, Massachusetts, represents individuals and businesses in federal and state tax controversy matters.

To learn more about the firm's practice or schedule a consultation, visit laulegalservices.us.