Overview

Daylan A. Nyarko is a tax controversy attorney with extensive experience representing high-net-worth individuals and closely held businesses in both civil and criminal tax matters before the Internal Revenue Service and state taxing authorities. She has practiced law since 2009 and has maintained her own tax controversy practice since 2015. Her practice focuses on federal tax controversies involving high-net-worth individuals and small business corporations with annual gross receipts of approximately $25 million or less, including IRS examinations, administrative appeals, and litigation before the United States Tax Court. She has also served as an expert and consultant in matters involving complex income tax issues, reasonable compensation, flow-through entity matters, penalty defenses, and collection alternatives.

Areas of Focus

• Representation of closely held corporations and S corporations (under $25M in gross receipts)

• IRS examinations and audits (field, office, and correspondence)

• IRS Appeals and administrative resolution of tax controversies

• U.S. Tax Court litigation and settlement

• Flow-through entity taxation (S corporations, partnerships, LLCs)

• Reasonable compensation and owner employee issues

• Civil penalties (accuracy related, late filing, late payment, FBAR/foreign reporting if applicable)

• Collection matters: offers in compromise, installment agreements, currently not collectible status, liens and levies

• Business expense substantiation, hobby loss and passive activity loss disputes

• Small business corporate structuring and tax elections (S corporation, check the box, etc.)

Representative Experience and Consulting Expereince

(Client names and identifying details omitted to preserve confidentiality.)

• Represents a managing member of a Partnership involving complex business organization litigation including allegations of financial misconduct, payroll fraud, and violations of federal and state tax laws. Provides strategic guidance on accounting reconstruction where documents are largely unavailable after abrupt business closure.

• Represents Taxpayers facing simultaneous high-stakes civil and criminal exposure involving alleged multimillion-dollar Medicare billing matter implicating unpaid tax and revenue determination issues.

• Prepares and analyzes financial records for use by local TX counsel in multi-million-dollar civil litigation involving a closely held oil and gas business, identifying annual revenues, tracing related-party transactions, and evaluating allegations through forensic financial statements and supporting documentation where every transaction is under scrutiny through receivership.

• Represents Taxpayers before the IRS in a multi-million-dollar federal income- tax dispute involving six-figure penalties and interest arising from a prior audit year where complex shareholder returns prepared incorrectly by international accounting firm.

• Represents Taxpayers before the IRS in a complex Bank Secrecy Act audit involving alleged anti-money-laundering violations; analyzed and coordinated review of cash-heavy financial records, compliance procedures, and regulatory reporting requirements.

• Represented Taxpayer before the U.S. Tax Court where assessed seven-figure, multi-year tax debt arose subsequent to high-net-worth divorce; further representation before Small Business Administration regarding the withholding of corresponding disaster-relief funds and petitioning Congress to facilitate release.

• Represents high-net-worth Taxpayers before the New York State Department of Taxation and Finance in complex income-tax audits where international and multiple residencies affect assessed liabilities.

• Represented Taxpayer before the U.S. Department of Justice Tax Division in a federal matter alleging conspiracy to commit wire fraud, addressing government assertions of failure to claim multimillion-dollar proceeds; and coordinating defense strategy with local FL counsel.

• Provides forensic accounting analyses in civil litigation matters involving closely held businesses, including reconstruction of financial records, identification of annual revenues, tracing of funds, evaluation of related-party transactions, and assessment of alleged financial misconduct.

Licenses & Admissions

• Licensed Attorney, Illinois Bar, admitted December 2009

• Admitted to Practice, United States Tax Court, March 2018

• Admitted to Practice before the IRS under IRS Circular 230

• American Bar Association Taxation Division Membership