Tax Procedure Outline Audit to Litigation

March 15, 2005 Steptoe & Johnson LLP Tax Procedure Outline—Audit to Litigation This outline discusses tax controversy procedures, starting before the filing of the return, continuing through the IRS examination and Appeals stages, and up to the beginning of the litigation stage. The purpose of this outline is to identify and explain tax procedure requirements and opportunities. Knowledge and use of applicable tax procedure rules can be critically important to achieving the successful resolution of substantive tax issues. Tax controversy procedures create the danger of damaging pitfalls, as well as the opportunity to adopt creative and successful strategies. The outline proceeds on a chronological basis, from the beginning through the end of the tax process. For each stage in the tax process, headings in the outline raise procedural questions, identify procedural risks, and describe procedural opportunities. This outline does not contain in-depth analyses of the procedural rules, but does provide references to additional resources. When the Business Engages in a Tax-Sensitive Transaction, What Document Retention Issues Should I Consider? I. Stress to participants in the transaction that they are creating a written record. A. Most business documents cannot be protected as confidential documents. B. The attorney-client privilege protects only confidential communications between an attorney and a client in the course of their ...