A recent Tax Notes article highlighted the debate surrounding a Justice Department memo proposing the reassignment of Tax Division lawyers to U.S. attorneys’ offices across the country. Experts weighed in on the potential impact on tax enforcement, with some arguing that decentralization could weaken compliance efforts, while others saw opportunities for increased efficiency at the local level.
Gray Reed attorney Joshua Smeltzer was among those interviewed. Board Certified in Tax Law by the Texas Board of Legal Specialization, Joshua uses his experience as a former litigator for the U.S. Department of Justice to defend clients in tax audits, tax appeals, and litigation in Federal District Court, U.S. Tax Court, the U.S. Court of Federal Claims, and U.S. Bankruptcy Court. Drawing on this background, he noted that Tax Division attorneys already collaborate closely with U.S. attorneys’ offices but cautioned that improper implementation of the proposal could lead to attrition, loss of expertise, and inconsistent tax enforcement nationwide.
Excerpt: Joshua D. Smeltzer of Gray Reed said, “Based on my previous experience as a DOJ Tax Division trial
attorney, Tax Division attorneys already have a close relationship with local U.S. attorney offices in
order to use local office space, resources, and information on local practice. This could, if implemented properly, be an improvement in effectively and economically handling tax enforcement.”
One worry would be the potential for attrition among Tax Division attorneys based in Washington
and unwilling or unable to move, Smeltzer said. “Without a clear mandate to allow the DOJ Tax
Division to replace attorneys lost through attrition, it could result in a significant reduction in
qualified attorneys to handle enforcement efforts in tax cases.”
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