Cases
Representative Matters: Represented a defendant charged in the Eastern District of Pennsylvania with filing false tax returns
although Federal Sentencing Guidelines called for a range of 10 to 16 months imprisonment, the team successfully moved for a downward variance to a term of probation.
Appealing a civil tax liability of additional taxes, penalties,
interest, which was proposed by the IRS against an American expatriate living in Switzerl
following a concluded criminal matter.
Represented a client in an IRS examination. The client had failed to report certain foreign-sourced income,
so attempted to enter an IRS Offshore Voluntary Disclosure Program. When his application was denied, counsel recommended a course of action which minimized the client's FBAR penalty
successfully avoided fraud charges.
Advocated for a dual American/South African citizen to avoid OVDP penalties
receive transitional relief, thereby reducing his liability to the IRS by several hundred thous
dollars.
Assisting a dual Swiss-American citizen with unwinding special financial relationships in Switzerl
, in the aftermath of his having received probation in a concluded criminal matter.
In United States v. Edgar Paltzer, represented a Swiss financial intermediary in negotiating a resolution to a multi-count indictment charging various federal tax offenses involving US taxpayers hiding assets in Switzerl
. Negotiated a plea to a single count of conspiracy
arranged a bail package permitting the client to return to Switzerl
pending his sentencing.
In United States v. Albert Cambata, represented expatriated former US citizen residing in Switzerl
in criminal tax prosecution. Secured bail package permitting the client to return to Switzerl
pending sentencing. Through sentencing advocacy secured sentence of one year unsupervised probation
small fine in face of government's recommendation of extensive prison sentence. Client continues to reside in Switzerl
with no travel restrictions.
Has represented over 400 individuals in IRS voluntary disclosure matters since March 2009. Representation has included successfully arguing for complete elimination or significant reduction of FBAR penalties
the successful use of a taxpayer assistance order issued by the National Taxpayer Advocate to force the Internal Revenue Service to comply with FAQ 35 of the 2009 Offshore Voluntary Disclosure Program thereby forcing the Internal Revenue Service to give consideration to the taxpayers' reasonable cause argument. The representation resulted in the complete elimination of the FBAR
accuracy-related penalties.
A Forbes 400 individual client was faced with a complex IRS matter. The engagement occurred after the IRS examination team had concluded its examination. The recommendation to the client was to use a mediation process referred to as Rapid Appeals Procedure ( RAP ) as a way to resolve the matter quickly. Based upon the presentation made in the RAP, the IRS conceded approximately 80 percent of the proposed adjustments.
One of the ten largest reinsurance companies in the world was confronted with an IRS Appeals procedure involving a proposed deficiency in excess of $800 million. The appeal involved eight different issues concerning complex matters involving the tax treatment of certain reinsurance transactions. The engagement was to develop
lead a team of approximately 20 attorneys
subject matter experts in an appeals procedure that lasted over 18 months. In the end the IRS conceded all but $60 million of the proposed deficiency.
Represented a publicly traded real estate investment trust in a complex examination. The primary adjustments concerned transfer pricing issues. After assembling a transfer pricing team, coordinating the preparation of a transfer pricing report
presenting the taxpayer's position to the examination team manager, the IRS concluded the matter with no changes to the client's tax returns.
A leading real estate developer was engaged in other activities which the IRS deemed hobbies, thereby denying numerous deductions. Despite almost 20 years of continuous losses in the activities, in Appeals a 75 percent concession by the IRS was obtained.
A Delaware trust company serving as trustee of a trust had engaged in numerous financial transactions at the direction of the grantor of the trust. The IRS viewed the transactions as abusive
sought to impose a significant deficiency against the trust. After an intense review of the hundreds of documents involved in the transactions, a presentation was made to the examination team demonstrating that the trust managed by the client trust company was in fact directed by the grantor of the trust, received no tax or other financial benefit from the transactions
that in fact it was the grantor of the trust who was responsible for the tax liability generated by the financial transactions. Ultimately the IRS concluded the matter with no change to the trust's tax returns
pursued the grantor.
A prominent New York philanthropist was investigated for the evasion of millions of dollars in sales/use tax. The client had shipped works of art purchased in NYC to a weekend out-of-state residence (thereby avoiding taxes) but the art was promptly sent to the client's Park Ave residence (thereby making the transaction taxable). At the time the client was the chair of a high-profile public institution
avoidance of publicity was a paramount concern. The matter was quickly resolved with the correct amount of tax being paid
penalties were eliminated in part based upon the theory that the client had depended upon the advice of the art gallery owner in shipping the property tax-free.
Mr. Ostr
er successfully represented a partner in a major accounting firm in an Internal Revenue Service criminal investigation arising out of the accounting firm's former client's prosecution for income tax evasion. The representation resulted in a declination of the proposed criminal prosecution of the partner. This representation was followed by the successful defense of the partner
the accounting firm in a professional malpractice action commenced by the former client.
Represented a boutique law firm before the IRS Appeals Division
Office of Chief Counsel
was able to reconstruct income
deductions resulting in the reduction of the assessment of tax, interest
penalty by more than $1.2 million.
Represented a director of tax
finance of a public company in negotiating a criminal disposition based upon failure to file or pay New York City income tax since 2000 from a potential seven-year term of incarceration down to payment of back taxes
a fine, along with community service.
In Robinson v. United States, the Third Circuit in a case of first impression established the taxpayer's right to challenge an IRS lien under the quiet title provisions of the United States Code. Traditionally such an attack on liens had been viewed as an impermissible challenge to the underlying tax deficiency. Mr. Ostr
er, acting as lead counsel, convinced the court that an exception should apply when the Internal Revenue Service failed to comply with its own rules in filing a federal tax lien.
In Tinsley v. Commissioner, Mr. Ostr
er acting as lead counsel convinced the Tax Court that the Internal Revenue Service's position regarding tax deficiencies owed by a CPA were not justified
was successful in having the Court award the taxpayer the attorney fees he incurred in disputing the IRS action.
In Botsaris v. Commissioner, Mr. Ostr
er was successful in obtaining innocent spouse status relief for his client, relieving the taxpayer of liability for underreported income on a joint federal income tax return.
In Bellis v. Commissioner, Mr. Ostr
er, serving as co-counsel, was successful in asserting a claim that the statute of limitations barred the assessment of any tax liability.
In Estate of Anne Marie Fahey v. Thomas Capano, Mr. Ostr
er represented the family
the estate of the victim in this high profile murder case. He was involved in all aspects of the representation from the initial phases of the investigation of the crime through the conviction of the accused at trial. He prosecuted a civil action against the murderer, his co-conspirators
their corporations which resulted in a significant monetary settlement.
