Elizabeth Nelson

Senior Tax Attorney at Leading Tax Group | IRS, FTB, EDD & CDTFA Tax Controversy and Representation

Elizabeth Nelson, Esq., J.D., LL.M. is a Senior Tax Attorney at Leading Tax Group whose professional background spans federal and California tax controversy, U.S. Tax Court matters, IRS audits and Appeals, payroll tax disputes, innocent spouse matters, and representation involving California tax agencies, including the Franchise Tax Board (FTB), Employment Development Department (EDD), and California Department of Tax and Fee Administration (CDTFA).

Her tax-law background combines advanced academic training, federal Tax Court experience, teaching, published tax commentary, professional leadership, and experience with substantial individual and business tax controversies.

Elizabeth earned her LL.M. in Taxation from New York University School of Law after receiving her J.D., cum laude, from the University of San Diego School of Law.

Earlier in her career, she was awarded a clerkship with the United States Tax Court, where her responsibilities included researching and writing Tax Court opinions involving regular, small, and special-project cases.

This combination of tax-law scholarship and practical controversy experience informs her work with taxpayers confronting complicated federal and California tax disputes.

Areas of Tax Experience

Elizabeth’s experience includes matters involving:

• IRS tax controversy
• IRS audits
• IRS Appeals
• U.S. Tax Court matters
• IRS payroll tax disputes
• Trust Fund Recovery Penalty matters
• Individual tax controversy
• Innocent spouse matters
• Business tax controversy
• Real estate tax disputes
• Nonprofit tax matters
• Offer in Compromise matters
• IRS liens
• California Franchise Tax Board (FTB) representation
• California Employment Development Department (EDD) representation
• California Department of Tax and Fee Administration (CDTFA) representation
• California payroll and employment tax disputes
• California sales tax audits and assessments

Her experience across both federal and California tax agencies can be particularly relevant when a taxpayer’s problem is not confined to a single taxing authority.

U.S. Tax Court Experience

A distinguishing part of Elizabeth’s professional background is her experience with the United States Tax Court.

Elizabeth was awarded a clerkship with Senior Judge Theodore Tannenwald Jr. of the U.S. Tax Court. During her 1987–1988 clerkship, she researched and wrote Tax Court opinions involving regular, small, and special-project cases.

Her professional vitae specifically identifies her work involving Metzger v. Commissioner, 88 T.C. 834 (1987).

Before receiving the Tax Court clerkship, Elizabeth earned her J.D. cum laude, graduating within the top 9% of her class at the University of San Diego School of Law. According to her professional vitae, she was the first USD graduate appointed to a clerkship with the U.S. Tax Court.

This background provides Elizabeth with experience not only in tax law itself but also in the processes through which federal tax controversies can be researched, argued, reviewed, and decided.

IRS Tax Controversy Experience

IRS tax controversies can range from disputed assessments and audits to Appeals, collection matters, payroll tax liabilities, penalties, and litigation.

Elizabeth’s representative experience includes IRS matters involving individuals, businesses, real estate developers, entrepreneurs, nonprofit organizations, physicians, entertainers, and private foundations.

Her reported representative matters have included disputes involving:

• Proposed IRS assessments
• IRS audits
• Payroll tax liabilities
• Trust Fund penalties
• Listed transaction penalties
• Research and development credit disputes
• Unrelated Business Income Tax (UBIT)
• Private foundation self-dealing
• Federal tax liens
• IRS refunds
• Offers in Compromise
• Innocent spouse relief
• U.S. Tax Court proceedings

The appropriate strategy in an IRS controversy depends on the facts, procedural stage, supporting evidence, applicable tax law, and available administrative or judicial remedies.

IRS Payroll Tax Experience

Payroll tax controversies can create significant financial and legal problems for businesses, nonprofit organizations, and individuals who may potentially be considered responsible for unpaid employment taxes.

Elizabeth has professional experience involving substantial IRS payroll tax matters.

Representative matters supplied by Elizabeth include reported outcomes involving multimillion-dollar payroll tax assessments and penalties, Trust Fund penalties, nonprofit payroll tax liabilities, and Offers in Compromise.

Her professional writing also includes the publication “Resolving Payroll Tax Liability,” published in The Commercial Factor Magazine.

This combination of case experience and published commentary makes payroll tax controversy an important area of Elizabeth’s professional authority.

Trust Fund Recovery Penalty Experience

The Trust Fund Recovery Penalty (TFRP) can potentially create personal liability for certain individuals when employment taxes that should have been collected and paid to the federal government remain unpaid and applicable legal requirements are satisfied.

Elizabeth’s representative matters include a reported $1.2 million Trust Fund penalty matter that was reduced to $0.

Because TFRP matters can involve questions concerning responsibility, willfulness, business operations, payroll practices, and individual involvement, they can differ significantly from ordinary individual income-tax collection cases.

Innocent Spouse Tax Controversy

Innocent spouse matters represent another significant area of Elizabeth’s experience.

These cases may arise when one spouse seeks relief from joint federal tax liability under applicable innocent spouse provisions.

Elizabeth’s representative matters include innocent spouse disputes resolved through IRS Appeals, the U.S. Tax Court, and other IRS proceedings.

Examples provided in her representative matters include reported outcomes involving assessments of:

• $22 million
• $3.6 million
• $2.4 million
• $2.1 million
• $900,000
• $580,000
• $560,000
• $256,000

Several were reportedly reduced to zero, while the $22 million matter was reportedly reduced to $1,500 in U.S. Tax Court.

These representative matters illustrate the potentially significant financial consequences involved in complex innocent spouse disputes.

Representative matters are provided for informational purposes. Every case depends on its individual facts, applicable law, evidence, and procedural circumstances. Past results do not guarantee future outcomes.

California FTB Representation

Elizabeth also has experience with matters involving the California Franchise Tax Board (FTB).

The FTB administers California personal and corporate income taxes and can conduct audits, issue assessments, impose applicable penalties, and pursue collection actions.

Elizabeth’s reported FTB representative matters include:

• A $1.1 million listed-transaction penalty matter involving an auto dealership reportedly reduced to $265,000.
• A reported $1 million penalty refund obtained through settlement.
• A reported $35,000 refund involving a disputed levy.
• A California FTB result associated with an innocent spouse matter.

Taxpayers facing both IRS and FTB issues should recognize that federal and California tax controversies involve separate agencies, procedures, deadlines, and potential remedies.

CDTFA Sales Tax Representation

Elizabeth’s California tax experience also includes representation involving the California Department of Tax and Fee Administration (CDTFA).

The CDTFA administers California sales and use taxes and various other tax and fee programs. For businesses, a CDTFA sales tax audit can involve detailed examination of sales records, exemptions, reported transactions, accounting records, and supporting documentation.

Elizabeth’s representative CDTFA matters include reported audit outcomes involving:

• A $2 million assessment reduced to $38,000
• A $2 million assessment reduced to $34,000
• A $1.2 million assessment reduced to $0

Her work in this area also extends to tax education and thought leadership.

Elizabeth is the author of the new book:

How to Win a CDTFA Sales Tax Audit

Her CDTFA experience makes sales-tax audits and California tax controversy important areas of her professional profile at Leading Tax Group.

Before publication, Leading Tax Group should add the book’s publication date, publisher, ISBN, and official book URL if available.

EDD Payroll Tax Representation

Elizabeth also represents taxpayers in matters involving California’s Employment Development Department (EDD).

EDD employment-tax disputes can involve payroll taxes, worker classification, employment-tax assessments, audits, penalties, and Appeals.

Representative EDD matters supplied by Elizabeth include:

• A $2.2 million payroll tax fraud assessment reportedly reduced to $0 in a no-change audit
• A $100,000 assessment reportedly reduced to $0 in Appeals
• A $40,000 California payroll tax assessment reportedly reduced to $0

This experience complements Elizabeth’s federal payroll-tax work and provides her with experience involving employment-tax controversies at both federal and California levels.

Experience With Nonprofit Tax Controversies

Tax controversies involving nonprofit organizations can raise issues beyond ordinary business income taxes.

Elizabeth’s representative experience includes matters involving:

• Payroll tax liabilities of nonprofit organizations
• Unrelated Business Income Tax (UBIT)
• Private foundation self-dealing
• Section 501(c)(3) organizations

Reported representative matters include a $1.8 million nonprofit payroll tax liability resolved to $175,000 through an Offer in Compromise, a $2.2 million UBIT matter reduced to zero in audit, and proposed assessments involving private-foundation self-dealing and Section 501(c)(3) UBIT reportedly reduced to zero.

Business and Real Estate Tax Controversy

Elizabeth’s experience also includes federal tax controversies involving businesses, entrepreneurs, real estate developers, and other commercial taxpayers.

Representative matters supplied by Elizabeth include:

• A $1.7 million proposed IRS assessment involving a California property developer reportedly reduced to $0.
• A reported $7.8 million IRS refund issued to a California property developer.
• An IRS audit involving a real estate developer reportedly stopped, with a $645,000 refund secured.
• A federal tax lien involving a Texas oil and gas LLC reportedly released within one week.
• A $1.5 million R&D credit denial involving a printing corporation reportedly reduced to $0 in a no-change audit.
• A $2.2 million IRS assessment involving an internet entrepreneur reportedly reduced to $56,000.

These matters demonstrate the variety of factual, financial, procedural, and legal issues that can arise in business tax controversies.

IRS Appeals Experience

IRS Appeals provides taxpayers with an administrative forum for attempting to resolve certain disputes without litigation.

Elizabeth has both practical and published experience involving IRS Appeals.

Her publication history includes:

“Settling with the IRS in Appeals: The New Importance of the APA”

published in the CCH Journal of Tax Practice and Procedure.

Her representative matters also include substantial disputes resolved through IRS Appeals, particularly in the area of innocent spouse relief.

For taxpayers, understanding the distinction between an IRS examination, IRS Appeals, and U.S. Tax Court can be important when determining what options remain available after disagreeing with an IRS determination.

Tax Law Teaching and Academic Experience

Elizabeth’s professional background extends beyond tax representation.

She has served as an Adjunct Professor at Chapman University School of Law’s LL.M. Tax Program, where her work has included divorce taxation and development and coordination of the Chapman Tax Professionals Panel.

Her earlier academic experience includes teaching tax courses through:

• University of California at Santa Barbara
• Santa Barbara College of Law

At UCSB, she taught Tax I and Tax II within CPA and CFP certificate programs.

Her combination of tax practice and teaching experience provides an additional dimension to her work explaining complex tax issues to taxpayers, professionals, and other audiences.

Publications

Elizabeth’s tax-related publications include:

Resolving Payroll Tax Liability

The Commercial Factor Magazine

Unreported Offshore Accounts – IRS Tax Amnesty Program to End on September 28, 2018

Co-author

Is IRS Rule Invalid for Failure to Comply With the Congressional Review of Agency Rulemaking Act?

Settling With the IRS in Appeals: The New Importance of the APA

CCH Journal of Tax Practice and Procedure

Deciding Between Choice of Entity and Choice of Law – Domestic Versus Foreign Situs

Co-author

How to Win a CDTFA Sales Tax Audit

Book

Her publications cover topics including payroll tax liability, offshore accounts, IRS administrative rules, IRS Appeals, entity structuring, and California sales-tax audits.

Professional Presentations

Elizabeth’s tax presentations have included:

How to Win a Section 469 Audit

Presented in connection with the American Bar Association Tax Section Spring Meeting, Cal Poly Pomona Tax Institute, and Pasadena CPA/EA Society.

Taxation of Domestic Partnerships

Presented through the American Bar Association Tax Section and Long Beach CPA/EA Society.

Innocent Spouse & Domestic Partnerships

Presented to South Bay CPAs.

These engagements demonstrate experience communicating complex tax issues to tax professionals as well as handling them in practice.

Professional Leadership & Associations

Elizabeth’s professional activities have included:

• Vice Chair, American Bar Association Tax Section — Individual and Family Income Committee
• Board Member, Southern California Chapter of the International Factoring Association
• Secretary, Beverly Hills Bar Association Tax Section

She has also served as a tax advisor to Sheriff Leroy D. Baca through the Los Angeles County Sheriff’s Department Multi-Faith Executive Council.

Education

New York University School of Law

LL.M. in Taxation

May 1997

University of San Diego School of Law

Juris Doctor, Cum Laude

June 1986

• Graduated in the top 9% of her class
• Graduate Fellowship, LL.M. Tax Program
• Research Assistant to the Honorable Theodore Tannenwald Jr., U.S. Tax Court
• First University of San Diego graduate appointed to a U.S. Tax Court clerkship, according to her professional vitae

 

Frequently Asked Questions About Elizabeth Nelson

1.     What type of tax matters does Elizabeth Nelson handle?

Elizabeth’s experience includes IRS tax controversy, audits, Appeals, Tax Court matters, payroll tax, innocent spouse cases, business tax disputes, and California tax matters involving the FTB, EDD, and CDTFA.

2.     Does Elizabeth Nelson handle CDTFA sales tax audits?

Yes. Her representative experience includes CDTFA sales-tax audit matters, and she is the author of How to Win a CDTFA Sales Tax Audit.

3.     Does Elizabeth Nelson represent taxpayers before the EDD?

Her supplied representative matters include California EDD payroll-tax audits and Appeals.

4.     Does Elizabeth Nelson handle California FTB disputes?

Yes. Her representative experience includes FTB penalties, settlements, levy disputes, and California tax matters associated with innocent spouse cases.

5.     Does Elizabeth Nelson have U.S. Tax Court experience?

Yes. Earlier in her career, Elizabeth clerked for Senior Judge Theodore Tannenwald Jr. at the U.S. Tax Court, where she researched and wrote Tax Court opinions.

6.     Does Elizabeth Nelson handle IRS Appeals?

Her professional background includes IRS Appeals matters, and she has published on settlement within the IRS Appeals process.

7.     Does Elizabeth Nelson handle innocent spouse cases?

Yes. Her representative matters include several substantial innocent spouse cases handled through IRS Appeals, U.S. Tax Court, and other IRS proceedings.

8.     Does Elizabeth Nelson handle payroll tax disputes?

Yes. Her representative matters include IRS and EDD payroll-tax disputes, Trust Fund penalty matters, and nonprofit payroll-tax controversies. She has also published on resolving payroll-tax liability.

9.     Does Elizabeth Nelson teach tax law?

Her professional vitae identifies her as an adjunct professor in Chapman University’s LL.M. Tax Program and lists earlier tax-instructor positions at UCSB and Santa Barbara College of Law.

10.What makes Elizabeth Nelson’s background distinctive?

Her professional background combines an advanced LL.M. in Taxation from NYU, U.S. Tax Court clerkship experience, tax-law teaching, published tax commentary, professional leadership, and practical experience involving IRS and California tax controversies.

About Elizabeth Nelson

Elizabeth Nelson, Esq., J.D., LL.M. is a Senior Tax Attorney at Leading Tax Group whose experience includes IRS tax controversy and representation involving the California Franchise Tax Board (FTB), Employment Development Department (EDD), and California Department of Tax and Fee Administration (CDTFA).

Her professional background combines advanced tax-law education, U.S. Tax Court experience, teaching, publications, professional leadership, and representative matters involving individuals, businesses, nonprofit organizations, payroll tax disputes, innocent spouse cases, sales-tax audits, and other federal and California tax controversies.