17th Annual Tax Controversy Forum 2025 – Track II (Presented by NYU School of Professional Studies)

Conference introduction by Assistant Director Kathleen Costello setting the stage for the two-day forum. Brief overview of the program structure and acknowledgment of participants.

Examination of unprecedented IRS upheaval including leadership turnover, staffing reductions of approximately 30,000 employees, and resource constraints affecting all divisions. Practitioners learn about disappearing agents mid-case and strategies for navigating the current environment.

Expert panel analyzes the proposed 37% IRS funding reduction and its impact on voluntary compliance and revenue collection. Discussion covers Pillar Two international tax implications, the 10-to-1 regulatory rule, and technology initiative challenges.

Chief of Appeals addresses staffing losses of approximately 28% while maintaining lowest cycle times in six years. Focus on ADR programs including Fast Track and Post-Appeals Mediation, with receipts increasing 25% in fiscal year 2024.

Overview of Tax Court statistics showing 62% electronic filing in 2024 and over 750 pending conservation easement cases. Discussion of Chief Counsel organizational changes including the pass-through division split and LB&I/SB/SE litigation consolidation.

Panel explores how psychological conditions including depression, PTSD, OCD, and addiction disorders affect tax compliance and create grounds for penalty relief. Strategies for working with psychiatric experts, building records, and overcoming IRS biases are examined.

Analysis of Bilateral Investment Treaties and Free Trade Agreements as mechanisms for challenging unfair tax treatment through international arbitration. Landmark cases including Feldman v. Mexico and Vodafone v. India illustrate potential remedies for expropriation claims.

Comprehensive review of the Bipartisan Budget Act centralized audit regime replacing TEFRA procedures for partnerships. Coverage of imputed underpayment calculations, modification procedures, push-out elections, and strategic choices available to partnerships.

Discussion of offshore information gathering mechanisms including FATCA, bilateral treaties, TIEAs, and the Multilateral Convention with 150+ signatories. Recent Canadian and Indian court decisions affecting taxpayer challenges to information exchange requests are analyzed.

Expert panel addresses substantiation challenges for $1.2 trillion in IRA tax credits involving begin construction determinations, placed-in-service tests, and basis step-up valuations. Best practices for documentation, coordination among multiple parties, and the growing role of tax insurance are covered.

Interview exploring historic leadership changes at the Tax Division and its evolving role in tax administration. Discussion covers resource curtailment impacts on representing the United States in refund, bankruptcy, and appellate courts.

Panel featuring IRS Criminal Investigation leadership provides inside perspective on current investigations and future enforcement signals. In resource-constrained environments, criminal case selection sends important compliance messages to taxpayers and practitioners.