News
Elvis D. Gonzalez recently obtained a favorable ruling in an IRS appeal case on behalf of a corporate officer. The determination represents a complete vindication for Mr. Gonzalez's client.
The case began over six years ago when Mr. Gonzalez's client purchased a 50 percent interest in a Chicago-area business. Almost immediately, issues arose with his partner, and the dispute quickly escalated into adverserial shareholder litigation. Mr. Gonzalez pursued claims of mismanagement on his client's behalf, and uncovered evidence of widespread breaches of the controlling shareholder's fiduciary duties. Eventually, the parties resolved their differences, but not before the business failed because of the partner's malfeasance.
Years later, the taxman came calling. The IRS assessed a penalty in excess of $600,000 for the failed business' unpaid payroll taxes against Mr. Gonzalez's client. Because he was an officer with supposed responsibility for the financial management of the business, the IRS claimed that he was personally liable. After Mr. Gonzalez successfully argued that his client was only an officer for a short period of time, who never had meaningful control over the business given his partner's actions, the assessed claim was reduced to $41,000. Instead of agreeing to settle at that point, Mr. Gonzalez filed an appeal, seeking to further reduce the amount sought by the IRS.
In the appeal, Mr. Gonzalez conclusively proved the extent and scope of the former partner's oppressive conduct. As a result, he secured a ruling that no personal liability for the business tax debt existed at all.
About Elvis Gonzalez, Ltd.
Elvis Gonzalez, Ltd. is based in Chicago, Illinois, and provides quality litigation and general business counseling services to clients in a highly personalized, cost-effective manner. Its principal, Elvis D. Gonzalez, works with businesses and organizations of all types to solve the legal challenges they face, and more importantly, to avoid them in the first instance. For more information, please visit www.elvisgonzalezltd.com.
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