Tax Controversy and Resolution

Have tax problems with the IRS, the Texas Comptroller, or the New Mexico Taxation and Revenue Department? The Ornelas Firm represents individuals and businesses in El Paso, West Texas, and Southern New Mexico in all stages of tax disputes. Unlike national or regional “tax resolution” companies, our clients’ tax problems are handled by experienced tax attorneys with extensive technical backgrounds in accounting and tax law, who tailor a resolution plan to each client’s specific situation rather than making generic, empty promises. We assist clients from the first audit or deficiency notice, through administrative appeals to protest tax assessments, and, when necessary, by litigating against taxing authorities in state and federal court – often with the same tax professional guiding the case from start to finish. If a solution to your tax problem exists, our determination to resolve it is limited only by your will to pursue it.

• Audits and Examinations.
• Unfiled Tax Returns.
• Deficiency Notices.
• Tax Protests and Appeals.
• Tax Litigation.
• Tax Liability Resolution.

Audits and Examinations

Your tax return can be chosen for audit for a number of reasons: history of non-filing, income does not match amounts reported by third parties, expenses exceed statistical standards, refunds appear excessive, chosen at random to review compliance, etc. The Ornelas Firm has significant technical and practical experience in working with both state and federal tax authorities to conduct and complete audits and examinations in a manner that is focused on achieving the best outcome possible for clients while minimizing client stress and anxiety.

Unfiled Tax Returns

Clients forget or fail to file tax returns for a number of reasons, which may result in a number of unfavorable tax consequences for clients – such as the loss of a business permit or the filing of a substitute return by a tax authority. One of the biggest hurdles clients face in filing returns for prior tax years is producing income and expense records in order to prepare unfiled returns. Being both attorneys and accountants, our tax professionals are adept at reconstructing a client's tax records from a variety of information sources while constantly focused on obtaining the most favorable tax incentives for which clients qualify.

Deficiency Notices

If a taxpayer's tax return fails to include income that was reported to a taxing authority by third parties, or takes a position with which the taxing authority does not agree, the taxpayer may receive a notice from the taxing authority which suggests a change to the taxpayer's tax return which will result in additional tax charged to the taxpayer. Ignoring these notices can result in giving up important rights to dispute the taxing authority's determination and being charged with a tax that one may not really owe. We have extensive experience counseling clients on their options to respond to these types of notices to minimize their exposure to unfavorable and inaccurate tax liabilities.

Tax Protests and Appeals

Once a tax authority determines that a taxpayer owes taxes (either as a result of an audit or a deficiency notice), the tax authority sends a notice to a taxpayer notifying them that they have been charged (i.e., "assessed") a tax liability. These notices may be accompanied by, or take the form of, notifications that a lien has or will be filed against the taxpayer's property – or that the taxpayer's wages have or will be garnished. The steps a client takes after receiving this type of notice are critical – the deadlines for filing a response, and the documentation and contents of a response, to the taxing authority, vary from state to state, and differ as between state and federal governments. What is included in (and, more importantly, excluded from) the response can have a critical impact on a client's rights to protest a taxing authority's assessment and collection efforts. We understand the different requirements for filing tax protests with the IRS, the Texas Comptroller of Public Accounts, and the New Mexico Taxation and Revenue Department – and appreciate the need to act quickly in response to these types of notices to preserve important client rights. Even if a taxing authority has filed a lien or wage-garnishment order against a client, we vigorously represent our client's interests to remove or suspend such enforced-collection tools.

Tax Litigation

Clients often do not obtain the resolution they expected or sought to their tax problem in an administrative appeal, and litigation remains their only option to resolve their tax dispute. Admitted in the Supreme Courts in Texas and New Mexico, and the United States Tax Court, we have experience representing clients in the judicial review of tax controversies against the IRS, the Texas State Comptroller of Public Accounts, and the New Mexico Taxation and Revenue Department.

Tax Liability Resolution

When a taxpayer owes taxes to a taxing authority, they often believe that payment of the tax liability is their sole option – and this is often not the case. We counsel clients on their options to resolve their tax liabilities with the IRS, the Texas State Comptroller of Public Accounts, and the New Mexico Taxation and Revenue Department. If payment is the only option, we vigorously represent clients before these taxing authorities to qualify for an installment payment arrangement or compromise solution that best suits our clients' financial needs.