R&D Credits: What the IRS Is Challenging and How Taxpayers Can Respond

Edward L. Froelich represents domestic and foreign public corporations, privately held companies, partnerships, trusts and individuals across the spectrum of federal tax controversies, including audits, trials and appeals. Ed’s clients include businesses, business owners and investors with operations and interests in the financial services, technology, real estate, healthcare and other industries.

A former trial attorney for the Tax Division of the US Department of Justice, Ed draws on his Justice experience to provide effective advocacy in Internal Revenue Service examination and appeals and in litigation before federal courts. Among other issues, Ed has successfully represented clients in disputes involving transfer pricing, worthless stock deductions, cross-border transactions, tax credits, income tax accounting, insurance, employment tax, accounting method issues and a variety of penalty assessments.

Ed also advises concerning privilege and work product questions and reporting obligations, including the obligation to file information returns such as those relating to the Form 1099 series, Form 1098, FinCEN 114, FATCA and employment taxes.

Ed is the author of the United States chapters of The Tax Disputes and Litigation Review and The Transfer Pricing Review, published by Law Business Research. He is a co-author of BNA’s Privilege in Tax and Accounting Matters (T.M. 635) and The Section 7525 Tax Practitioner-Taxpayer Privilege and Related Issues (Accounting Policy and Practice Series No. 5511).

After earning his law degree, Ed served as a law clerk for the Honorable John P. Wiese of the US Court of Federal Claims.

Shawn O’Brien is nationally recognized by his peers and clients as a leading tax practitioner with a focus on tax litigation and controversies involving state, federal and international tax authorities. Drawing on his 25 years of experience, Shawn represents clients in tax examinations and administrative appeals and, when necessary, serves as a forceful advocate in litigation before the US Tax Court, US district courts, the US Court of Federal Claims, state courts and federal appellate courts. Shawn is the managing partner for the firm’s Houston office.

Clients interviewed in the Chambers USA Legal Guide 2024 shared that Shawn is “a trusted adviser and his level of service is superb” and he “has been a good strategic tax partner for our company,” particularly noting his “in-depth knowledge of our industry.”

Shawn’s experience spans a broad range of tax issues that affect many different industries, including energy, renewables, financial services, life sciences, manufacturing, media and entertainment, technology and aviation. He advises domestic, foreign and multinational corporations, partnerships, master limited partnerships, real estate investment trusts and limited liability companies on tax issues in connection with foreign and domestic transactions.

He also counsels clients in disputes involving transfer pricing, debt versus equity, loss carrybacks, international withholdings, advance pricing agreements, tax shelter disallowances, research and development tax credits, changes in accounting methods, captive insurance, related-party transactions, repatriation structures, inbound distributors, foreign credit transactions and penalty abatements. Shawn has also developed a market-leading federal and state excise tax practice that advises some of the largest corporations on excise tax planning and controversies.

Susan E. Ryba focuses her practice on federal tax controversy matters and tax litigation, particularly advising clients in the technology, healthcare, and pharmaceutical sectors, as well as high-net-worth individuals and complex partnerships.

Susan has substantial experience in all stages of federal tax controversies, including audits, administrative appeals, alternative dispute resolution proceedings, and litigation. She has resolved most of her matters at the Internal Revenue Service (IRS) examination level or through the IRS Independent Office of Appeals (IRS Appeals) and other dispute resolution forums. She advises clients on a broad range of domestic and international tax issues, including transfer pricing, research credit, effectively connected income, passive activity losses, Subpart F, Section 965, economic substance and other related doctrines, worthless stock and debt deductions, foreign-derived intangible income, foreign tax credits, summons enforcement, and penalties.

Susan frequently speaks at seminars sponsored by the Tax Executives Institute and teaches trial skills for the National Institute for Trial Advocacy.