Law Office of GERALD W. KELLYESQ. 
Prior Engagements

Offer in Compromise
A home improvement company owed the IRS approximately $1,000,000.  The Offer in Compromise submitted by its accounting firm was rejected, as the IRS determined the liability could be paid in full.  I represented the company at the administrative appeals level and negotiated a settlement of $450,000 to be paid in installments over a twelve month period.

Installment Agreement
A client that owed the IRS approximately $150,000,000 (one hundred and fifty million dollars) was granted an installment agreement of $100 (one hundred dollars) per month. 

U.S. Tax Court Litigation - IRS Abuse of Discretion
On behalf of a corporate client, I filed a Collection Due Process appeal, which was assigned to a Settlement Officer within the IRS Appeals Division.  After a contentious administrative hearing, the appeal was rejected and the Settlement Officer determined that levy and seizure action were appropriate.  This would have immediately caused the company to go out of business.  I filed a petition in the United States Tax Court alleging that the Settlement Officer had failed to consider the case as required by the Internal Revenue Code and Treasury Regulations.  The IRS Area Counsel Attorney agreed with my position and informed the Tax Court that the case had been improperly handled by the Appeals Division.  Levy and seizure action were not taken and the case was remanded to Appeals for the review required by law.  

Money Laundering
My clients were charged with laundering narcotics proceeds and structuring transactions to avoid their reporting to the IRS.  Under the federal sentencing guidelines, they faced a maximum prison sentence of twelve years.  After extensive negotiations with the U.S. Attorney’s Office, they were sentenced to serve one day in jail and a period of supervised release.  A $2.4 million forfeiture order was settled for $100,000.

Offer in Compromise
A chiropractor's Offer in Compromise based on doubt as to collectibility was rejected after the IRS determined that the tax liability of $850,000 could be paid in full.  The case was appealed and the IRS accepted an offer of $350,000.

"Like-Kind" Exchange
Following an audit, the IRS refused to recognize a "like-kind" exchange.  On the eve of trial in the U.S. Tax Court, the IRS conceded the case.  The savings realized by the client was approximately $1.2 million.

U.S. Tax Court Settlement
A client deducted tuition paid to Harvard Business School as a business expense.  Prior to trial, the IRS conceded, based on the government's litigation hazards, that 75% of the tuition was, in fact, a bona fide business expense.

Unlawful Seizure of Real Property
The IRS seized and sold a family's farm and home in the Dallas, Texas area.  I obtained a temporary restraining order ("TRO") from the U.S. District Court and then represented the taxpayers at trial. The Court, after considering the post-trial briefs, ruled that the taxpayers were entitled to recover their property.  This case was reported on extensively by a national television network affiliate in Dallas, Texas.

Disallowed Business Expenses
Following an audit handled by another firm, a prominent physician received a notice indicating that he would be assessed an additional $240,000 in taxes, penalties, and interest based on expenses of his medical practice that the IRS Revenue Agent disallowed.  After filing a petition in U.S. Tax Court, I represented the client before the Appeals Division of the IRS and negotiated a settlement resulting in a revised liability of $45,000.

Trust Fund Recovery Penalty Litigation
The CEO of a government contractor was assessed a Trust Fund Recovery Penalty due, primarily, to the malfeasance of an accountant hired to oversee the company's financial and tax operations.  This case involved extensive pre-trial discovery, which included depositions in three states.  The U.S. District Court denied the government's motion for summary judgment.  Thereafter, the U.S. Department of Justice agreed to settle the case on reasonable terms.  The savings to my client exceeded $400,000.

Levy Action Against Government Contractor
A successful and growing government contractor had all of its accounts receivables attached by an IRS Revenue Officer.  After the filing of a collection appeal and numerous conferences with the Revenue Officer and his manager, all levies were released and my client was given a reasonable period of time to address the tax situation.  Had the levies remained in place, the business would have been forced to cease operations.

Criminal Tax - Plea Negotiations
My client was referred to the Department of Justice for criminal prosecution for certain tax felonies.  I negotiated an agreement with the U.S. Attorney’s Office, which allowed him to plead guilty only to misdemeanor tax charges.  My client then served a period of home detention, which enabled him to continue working in the IT industry.

U.S. Tax Court Trial - Worker Classification
The IRS challenged my client’s claim that he was an independent contractor and not an employee.  This resulted in a proposed tax assessment of approximately $160,000.  I tried the case in U.S. Tax Court, after which the IRS offered a full concession. 

Interest Abatement
An interest abatement claim was filed based on the failure of an IRS Appeals Officer to resolve certain partnership issues over a nine-year period.  Ultimately, the IRS agreed to abate a significant percentage of the interest that accrued during this time with the aggregate savings to the clients involved being in excess of $400,000.

Innocent Spouse
My client's former wife had embezzled large sums of money from her employer.  At the administrative level, the IRS took the position that my client received the benefit of the embezzled funds and knew, or should have known, that his wife was a thief.  Prior to the scheduled trial, the IRS conceded the case and agreed that my client should be relieved of any obligation to pay tax on the ill-gotten funds. 

Copyright © 2006-2019, Gerald W. Kelly, Esq.
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IRS tax attorney Gerald W. Kelly is a former IRS Revenue Officer. He resolves civil and criminal tax problems in Maryland, DC, Virginia, and throughout the United States.  The tax law firm provides help with IRS Offer in Compromise, IRS tax audit, IRS collection, IRS appeals, IRS litigation, US Tax Court, employment taxes, IRS levy, IRS lien, IRS seizure, IRS criminal investigation, IRS responsible person assessments, IRS trust fund recovery penalty, unpaid business employment taxes, and all other major IRS problems.  The law firm is located in Columbia, Maryland (MD). 
10320 Little Patuxent Parkway 
Suite 608 
Columbia, MD 21044

(410) 740-8750
(443) 542-0069, Facsimile