Elizabeth A. Nelson
IRS & California Tax Success Stories
Non-Profit Organizations/Trust Fund Penalty & OIC:
1. Saved large non-profit $2,840,000 in IRS Tax Penalties as follows:
a. $1,600,000 IRS Penalty Abatement.
b. $1,200,000 IRS Trust Fund Penalty Abatement (This stopped civil tax penalties of $1,200,000 from being assessed against the individual members of the Board of Trustees and the Executive Officers of the hospital).
c. $40,000 California EDD Penalty Abatement.
2. $2,446,815 IRS proposed assessment of Unrelated Business Income Tax assessed against non-profit reversed to $0 tax due, and a stipulation that the nonprofit keeps it tax exempt section 501(c)(3) status; in the United States Tax Court.
3. $1,756,900 IRS tax against non-profit reversed to $175,000 in Offer in Compromise with all tax liens removed.
4. $1,650,000 IRS proposed assessment against local Property Developer reversed to $0 tax due in the United States Tax Court and the client received a $1,639,375 offset in taxes and a $645,614 refund.
5. $7,769,322 IRS refund settled to $3,550,000 IRS, for Real Estate Developer, within the United States Court of Federal Claims; Court settlement to avoid overturning of an IRS federal regulation.
6. Stopped IRS LBI TEFRA Audit against real estate developer and secured $645,000 refund.
7. PLR authorized under IRC section 1031(a), no gain or loss recognized on the exchange of $24,000,000 timber properties located within California and Oregon.
8. $22,000,000 IRS assessment against husband and wife business owner; reversed wife’s assessment to $1,150,000 in the Innocent Spouse Unit; currently in IRS Appeals, to reverse the remaining amount due to $0 by Innocent Spouse; all within the United States Tax Court.
9. $3,600,000 IRS assessment against husband & wife, reversed wife’s assessment to $0 by securing Innocent Spouse for wife.
10. $2,400,000 IRS assessment against husband and wife; reversed wife’s assessment to $0 in IRS Criminal Unit, by securing Innocent Spouse for wife.
11. $2,100,000 IRS assessment against husband and wife; reversed wife’s assessment to $0 by securing Innocent Spouse for wife in the United States Tax Court.
12. $560,000 IRS assessment against husband and wife; reversed wife’s assessment to $0, by securing Innocent Spouse for the wife & corresponding CA FTB victory.
13. $256,000 IRS assessment against husband and wife; reversed wife’s assessment to $0, by securing Innocent Spouse for the wife.
14. $2,560,374 IRS Listed Transaction Penalties and additional Taxes against physician reversed to $576,500.
15. $1,560,000 IRS assessment against local Entertainer reversed to $0, with a refund of $43,814.00, in the United States Tax Court.
16. $2,210,000 IRS assessment against Internet Entrepreneur reversed to $56,000 in the United States Tax Court.
17. Trust Fund Penalty assessed reduced by 50%.
18. 1,062,820 FTB Listed Transaction Penalties and additional Taxes against franchisee auto dealership reversed to $265,000; Criminal Case dismissed.
19. Stopped FTB Criminal in Listed Transaction Penalties of abusive use of ESOP/S
S Corporation Arrangements.
FBAR & OVDP:
20. Filed OVDP analysis with Affidavits of Financial Disability, under IRC section 6511(h), passed Criminal even though Taxpayer had not filed taxes in 20 years.
21. $365,000 IRS assessment against franchisee restaurant owner reversed to $17,561 in the United States Tax Court, with no penalties attached.
Estate & Gift:
22. PLR extension of time filed under 310.9100-1 through 301.9100-3 request for late QTIP election on Form 706, due to fraud, lack of capacity and financial disability under IRC section 6511(h).
23. PLR authorized under 310.9100-1 through 301.9100-3 extension of time to make a late QSub election under IRC section 1361(b)(3).
24. PLR authorized under IRC section 877(c) loss of permanent resident status did not have as its principal purpose the avoidance of U.S. taxes.
Ms. Nelson specializes in Federal and State Tax Controversy, including audits, tax collection, appeals, United States Tax Court and the United States Court of Federal Claims proceedings; in addition to actions before the EDD, SBOE and the FTB. Ms. Nelson received her LL.M. in taxation from New York University in 1997. Ms. Nelson clerked for the United States Tax Court, for the Honorable Larry L. Nameroff, and was a Graduate Assistant for the Honorable Theodore J. Tannenwald, during her last semester of law school. Honorable Theodore J. Tannenwald of the United States Tax Court appointed Ms. Nelson as a Judicial Clerk for the Court, for the only clerkship open with the Court beginning that Fall term.
While at the United States Tax Court, Ms. Nelson helped research and draft several published opinions, one of which changed United States tax law. Ms. Nelson presented numerous lectures on Exempt Organizations and Planned Giving and developed several planned giving campaigns for various large exempt organizations. Ms. Nelson wrote numerous articles which have been published in the Santa Barbara Women Lawyers and the Women Lawyers of Ventura County.
Ms. Nelson has particular proficiency in providing legal counsel/litigation support in the areas of Tax Controversy, Tax Audits, Tax Court, International Tax and Tax and Estate Planning. Ms. Nelson was a tax consulting manager for a large motion picture production company.
Ms. Nelson is currently the Vice Chair of the American Bar Association, Individual and Family Income Taxation Section; a member of the National Association of Women Business Owners, NAWBO-LA, 2012-2014; the 2009 secretary of the Tax Section of the Beverly Hills Bar Association; and the past vice president of the Women Lawyers of Ventura County and member of the Santa Barbara Women Lawyers. Ms. Nelson is married. She and her husband raise toy schnauzers.
Areas of Practice
- Tax Controversy
- Tax Litigation
- U.S. Tax Court
- U.S. Court of Federal Claims
- Supreme Court of California
- New York University School of Law, New York, New York
- LL.M. - 1997
- Major: Taxation
- University of San Diego School of Law, San Diego, California
- J.D. summa cum laude - 1986
- Honors: Dean's List
- Major: Law/Taxation
- “Deciding Between Choice of Entity and Choice of Law-Domestic versus Foreign Situs”, Co-Author: Institute for International Research, 2001
- Adjunct Professor, Chapman University School of Law, LL.M. Tax Program, Divorce Taxation; Developed & Coordinated the Chapman Tax Professionals Panel, 2009 - Present
- Tax Instructor, University of California at Santa Barbara, Business Management and Law Department, CPA & CFP Certificate Programs- Tax I & Tax II, Spring, Summer Quarter 1999
- Tax Instructor, Santa Barbara College of Law, Tax I, Summer Term 1998
- Presenter, How to Win a Section 469 Audit, American Bar Association, Tax Section, Spring Meeting, 2012
- Presenter, How to Win a Section 469 Audit, Tax Institute, Cal Poly Pomona, 2011
- Presenter, How to Win a Section 469 Audit, Pasadena CPA/EA Society, 2012
- Presenter, Taxation of Domestic Partnerships, American Bar Association Tax Section Webinar, 2011
- Presenter, Taxation of Domestic Partnerships, Long Beach CPA/EA Society, 2011
- Presenter, Innocent Spouse & Domestic Partnerships PowerPoint Presentations: South Bay CPAs, 2010
Honors and Awards
- Judicial Clerkship United States Tax Court, 1986 - 1987
- UCSB Adjunct Instructor, CFP and CPA Certificate Programs, Tax I & II, 1996 - 1999
- Santa Barbara College of Law, Tax I
Professional Associations and Memberships
- American Bar Association, Tax Section, Individual and Family Income Committee, Vice Chair, 2012 - Present
- Beverly Hills Bar Association. Tax Section, Secretary, 2009 - 2010
- Sheriff Leroy D. Baca, Los Angeles County Sheriff’s Department Multi-Faith Executive Council, Tax Advisor, 2004 - 2006
- United States Tax Court, Attorney-Advisor [Awarded Position by Senior Judge, Tannewald], Researched and wrote Tax Court Opinions for regular, small and special project case, Metzger v. Comm’r, 88 T.C. 834 (1987), aff’d 845 F.2d 1013 (3rd Cir.1988), (Changed US tax law-Awards given to employees in a court case for sexual harassment/race became Tax-free), 1987 - 1988
- United States Tax Court
- United States Court of Federal Claims
- California Supreme Court