Lawyers at Cotten Schmidt & Abbott, L.L.P. have represented taxpayers regarding income tax, employment tax, estate tax, and federal civil forfeiture issues before the Internal Revenue Service Office of Appeals, the United States Tax Court, and in the United States District Courts system. Attorneys in the firm have worked for the Department of Justice, Tax Division and the U.S. Attorney’s Office.
Notably, attorneys at Cotten Schmidt & Abbott, L.L.P. successfully defended a local city government (the “City”) against a tax claim brought against it by the governing body of a much larger political subdivision within the same state (the “Municipality”). The dispute arose out of alleged errors by the local tax collector in dividing sales tax proceeds between the City and the Municipality.
As the dispute involved taxes, the Municipality also claimed that state law allowed it to invoke summary process and proceed on an expedited basis in its action against the City.
Our attorneys moved to have the action against the City dismissed because it was procedurally incorrect to use summary process for the adjudication of a dispute between two governmental entities. The trial court, however, disagreed with the City’s position that summary procedure should not be used. The court, immediately after that ruling, set the matter down to be tried in one (1) week.
In response, our attorneys immediately filed an Emergency Application for a Supervisory Writ with the Louisiana First Circuit Court of Appeal. The Appellate Court granted that application, finding that the use of summary proceedings was not authorized in this matter.
Faced with the possibility of having its claim dismissed on remand to the trial court, the Municipality ultimately decided to enter into a compromise of the dispute with the City.
The result was a good one, and was obtained on an expedited basis.
We have also defended many taxpayers seeking to avoid income tax and payroll tax trust fund liabilities. In two recent cases, the IRS was convinced to concede that the taxpayers were innocent spouses.