How a Tax Litigator Could Save You Money in the Long Run
May 12, 2025
When tax problems arise, many people turn to accountants or general attorneys. While these professionals can be helpful in some areas, there are times when legal conflicts with tax authorities require a more targeted approach.
In Nevada, where unique state laws and federal tax issues often intersect, a tax litigator can play a key role in reducing financial burdens over time. Though their services might appear to carry a higher initial cost, the long-term savings and protection they offer can far outweigh the upfront expense.
When you’re looking for a reliable tax attorney to help with tackling your taxes in the right way while saving money, Scott N. Tisevich is happy to help.
What Does a Tax Litigator Do?
A tax litigator is an attorney who handles disputes involving local, state, or federal tax authorities. These conflicts can involve audits, appeals, collections, criminal charges, or lawsuits filed against taxpayers. Their primary role is to represent clients in proceedings with the Internal Revenue Service (IRS), the Nevada Department of Taxation, and, when necessary, in court.
Unlike professionals who focus on tax preparation or general business advice, a tax litigator is trained to handle confrontation and resolution. They engage with auditors, review tax assessments, file petitions in tax court, and challenge penalties. These legal procedures require a sharp focus on both tax law and court strategy, and a tax litigator brings both to the table.
In Nevada, this role becomes especially valuable due to the state’s unique tax structure. Without a state income tax, Nevada places a larger emphasis on sales and use taxes, modified business taxes, and other revenue channels. Disputes often emerge from these less commonly discussed areas, and tax litigators regularly deal with these issues.
Proactive Defense Against IRS Actions
The IRS has the authority to initiate audits, freeze assets, garnish wages, and pursue criminal investigations. When these actions begin, it’s easy to feel cornered. A tax litigator steps in as a barrier between the taxpayer and aggressive collection efforts.
By addressing disputes early and with precision, they reduce the risk of additional penalties or interest. One area where this becomes particularly valuable is during an IRS audit. Audits can lead to amended tax assessments and fines that go far beyond the original tax owed.
When represented by someone experienced in tax litigation, the taxpayer benefits from a structured legal defense rather than a reactive approach. This often means the difference between paying a minor correction and facing a severe financial blow.
In Nevada, where businesses often operate across multiple jurisdictions, the potential for audit disputes can increase. A tax litigator can step in to address multi-state issues and interpret tax rules that may not be clearly defined across state lines.
Reducing Penalties and Interest Over Time
Many tax disputes stem from either late payments or errors in filing. While the tax owed may be a fixed amount, the penalties and interest can rapidly inflate the total bill. A tax litigator helps reduce or remove these extra charges by presenting valid legal defenses.
In many cases, penalties are assessed due to alleged negligence or failure to comply with filing requirements. A tax litigator can argue for penalty abatement based on reasonable cause, procedural mistakes by the IRS, or financial hardship. These arguments are often supported with detailed documentation, legal precedent, and clear communication with tax authorities.
In Nevada, certain taxes such as the commerce tax or modified business tax can create confusion for companies unfamiliar with local rules. Errors in reporting can quickly lead to high penalties. A tax litigator provides structured responses to reduce these charges, protecting the business from long-term damage.
Long-Term Financial Planning Through Litigation Outcomes
Though litigation is often associated with resolving past issues, the outcomes of tax litigation can shape financial strategies moving forward. For example, a case that resolves a disputed deduction or business expense may influence how a company structures its accounting going forward.
In Nevada, where many small and mid-sized businesses operate without in-house legal departments, tax litigators serve as external advisors after a dispute ends. Their guidance can help prevent future audits and structure transactions in a way that limits future exposure.
Successful litigation outcomes often create binding agreements or rulings that clarify how taxes will be calculated in the future. These precedents can be used to prevent repeat issues, saving money year after year. For individuals, litigation may clarify filing status, deduction eligibility, or residency rules that impact long-term planning.
Tailored Strategies for Nevada’s Tax Environment
Nevada’s tax system presents some unique challenges and opportunities. While residents enjoy the absence of a state income tax, businesses face obligations that differ significantly from those in neighboring states like California or Arizona. The Nevada Department of Taxation administers various taxes including:
Modified Business Tax (MBT)
Commerce Tax
Sales and Use Tax
Real Property Transfer Tax
Excise Taxes on regulated industries
Each of these can become a point of dispute, particularly for businesses operating in emerging industries or those that have expanded quickly. A tax litigator helps interpret how these taxes apply to specific business models, especially when guidance from the state is limited.
For example, the MBT can be calculated based on payroll thresholds, and disputes may arise when determining who qualifies as an employee or how compensation is counted. A tax litigator challenges improper assessments, proposes alternative calculations, and works to limit the financial impact on the business.
Litigation as a Tool Against Overreach
Government agencies sometimes exceed their authority or make mistakes that place an unfair burden on taxpayers. When this happens, negotiation is not always enough. Tax litigation gives individuals and businesses the opportunity to contest improper actions in court. Cases may involve:
Disputed audit findings
Excessive penalties
Misapplied tax rates
Incorrect tax classifications
Unjustified lien or levy actions
A tax litigator gathers evidence, presents arguments, and presses the issue through administrative appeals or judicial proceedings. In Nevada, this is particularly important for companies in regulated industries such as cannabis, gaming, or hospitality, where tax assessments can be high and subject to different interpretations.
By pursuing litigation, a taxpayer can not only reduce the immediate financial hit but also push back against precedents that could affect future operations. This serves both a defensive and forward-looking function.
Avoiding Criminal Consequences
In rare but serious cases, tax issues escalate beyond civil penalties and enter the tumultuous process of criminal prosecution. Accusations of tax evasion, fraud, or failure to file can result in serious consequences including fines and incarceration.
Tax litigators defend against these charges by analyzing the facts, identifying weaknesses in the government’s case, and negotiating outcomes that avoid criminal liability. In many situations, what begins as a criminal investigation can be resolved civilly if the matter is handled with skill and preparation.
Nevada, with its status as a hub for business incorporation and financial activity, occasionally draws scrutiny from federal authorities looking for tax shelters or questionable financial activity. A tax litigator defends legitimate businesses and individuals from being unfairly caught up in these broader investigations.
Cost-Benefit Perspective
Hiring a tax litigator is not inexpensive. However, the cost should be compared against the potential savings over time. These can include:
Avoided penalties and interest
Reduced tax assessments
Prevention of wage garnishment or asset seizure
Elimination of repeated audit triggers
Preservation of business operations
Here’s a breakdown of where financial savings often occur:
Audit defense: Mitigates or eliminates tax reassessments.
Penalty abatement: Removes added charges based on reasonable cause.
Injunctions or settlements: Stops collection actions, avoiding larger losses.
Appeals and rulings: Sets long-term boundaries for future tax treatment.
Criminal avoidance: Replaces potential prison time or felonies with fines or alternative penalties.
While some tax issues may seem minor at the outset, they often grow over time due to interest, penalties, or expanded audits. A tax litigator cuts off this growth at the root and can end disputes decisively.
Preparing for Future Tax Seasons
After litigation concludes, the relationship with a tax litigator doesn’t have to end. Many individuals and businesses choose to stay in contact to assess future risks, review large transactions, or prepare responses for any tax authority inquiries.
This proactive relationship leads to improved filing practices, fewer audit red flags, and better internal controls. In Nevada, where tax law continues to evolve—particularly with new industries and revenue sources—this kind of forward-looking legal attention can prevent future losses.
Working with a litigator who has seen how problems unfold and how agencies react gives taxpayers a valuable perspective that can’t be replicated through simple tax preparation or general legal advice.
Connect With an Attorney for Tax Litigation Today
From handling audit challenges to preventing criminal outcomes and reducing excessive penalties, the financial case for involving a tax litigator is strong and often essential. Serving Reno, Nevada, and the surrounding areas, including Churchill County, Lyon County, Carson City, Story County, Douglas County, and Las Vegas, Attorney Scott N. Tisevich is here to help. Contact the Law Office of Scott N Tisevich, Esq today to learn more.