T. Scott Tufts
ATTORNEY | CORPORATE TAX LAW
Areas of Practice
- Employee vs. Independent Contractor Disputes; SS-8 Determinations
- Tax Consultation & Expert Witnessing
- IRS Audits and Examinations
- Tax Court and Refund Litigation in Federal Court
- IRS Forms Analysis and Troubleshooting
- Abusive Tax Shelters & Tax Products (Form 8886)
- LLC, LLP, LLLP Tax Audits and Review (BBA Audits)
- Probate and Trust Litigation Involving Exploitation of the Elderly
Bar and Court Admission
- North Carolina
- Juris Doctorate, Wake Forest University School of Law, 1990
- Master’s of Law, Taxation, University of Miami, 1991
- Bachelor of Arts, Accounting, Florida State University, 1987
- American Bar Association
- Florida Bar Association
- Tax Section of Florida Bar
- North Carolina Bar Association
Mr. Tufts is a tax and business law attorney with over 32 years of experience taking on complex business and tax matters, often of a forensic nature. Mr. Tufts is a Board Certified Tax Lawyer of the Florida Bar, achieving this recognition in 1999, after practicing in North Carolina for 8 years prior. Mr. Tufts has a LL.M. in taxation from the University of Miami School of Law (1991), after obtaining his J.D. from Wake Forest University School of Law (1990) and a B.S. in Accounting from Florida State University in 1987. He is licensed to appear before the Internal Revenue Service, and in a number of Federal courts, inclusive of the Court of Federal Claims and the United States Tax Court. Mr. Tufts’ services include providing consultation and expert witnessing.
Mr. Tufts has extensive experience working with various business forms (LLCs, whether manager-managed or member-managed, as compared to corporations) and advising as to their Federal tax treatment (e.g., C vs. S Corp, or as a partnership, or disregarded entity). The opportunity for a LLC to structure its operations in states like Florida with limited liability, both in terms of outside protection, as against potential creditors of the LLC, and inside protection, as against potential creditors of the LLC members, might very well depend on whether the LLC is set up with a single member or more than one member. At the same time, many business owners do not realize that a LLC can operate as a C or S corporation, but in order to do so, their operating agreement needs to properly reflect on such Federal tax treatment. Careful regard must also be given to situations involving sweat equity, profits only interests, S corporation restrictions (when applicable), inclusive of single class of stock rules and restrictions on liquidation.
For LLCs taxed as partnerships under the Federal tax law, there is the need to have an operating agreement which properly addresses the intentions of the parties, inclusive of capital contributions (inclusive of how to book the same and potential revaluations), capital account maintenance (whether book or tax or otherwise), adherence to Federal tax regulations, inclusive of Section 704(b), elections to step up basis, as well as the establishment of provisions governing allocations of profits (income and loss), credits, and the proper handling of distributions (both current and liquidating). The parties’ must further look to address merger, restructurings, as well as exit and buy-out provisions that further involve tax considerations. There is the additional concern that can arise if the LLC is a “BBA Partnership” and ineligible to opt out of these centralized audit provisions. LLC operating agreements previously listing a “tax matters partner” under TEFRA require amendment to reflect on the possibility of a “partnership representative” being appointed. In this way, Mr. Tufts’ diversified background and experiences in a vast array of complex business and tax issues enables him to help a business mitigate or redress tax issues.
Mr. Tufts’ practice areas extends to assisting businesses and owners with IRS and other tax disputes. Mr. Tufts’ practice areas also includes complex areas such as employee vs. independent contractor disputes, IRS and related whistleblowing, abusive tax shelter and scheme analysis, LLC, LLP, and LLLP disputes, and probate and trust estate litigation, with an emphasis on the exploitation of the elderly claims impacting estates. Mr. Tufts has also represented businesses in complex business litigation when LLC and tax issues lead to unexpected disputes and issues that need resolution.
Over the years, Mr. Tufts’ has used his unique talents to untangle complex situations and structures that involve a combined analysis of fraud, tax, business entities, real estate, accounting, and litigation issues concerning multiparty litigation. As such, Mr. Tufts is able to assist business owners with his unique perspectives and talents, often multifaceted disputes, that typically cannot be addressed by one lawyer.
Mr. Tufts’ also is the host of the Tufts on Tax podcast, sponsored by PCC. The podcast looks to get the word out on how IRS forms create areas of dispute that are often overlooked by business owners. The show highlights the latest of developments in the world of taxes, often impacting businesses and business owners. Topics have included cryptocurrencies, corporate transparency, K-1s and IRS Form 8082, Form 1099-NEC, Form W-9, Form SS-8, as well as case law developments of interest.
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