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Watch: Caroline Ciraolo on Tax Controversy Trends in 2025

Caroline Ciraolo discussed her belief that tax enforcement will continue apace in 2025, despite many practitioners’ concerns that there could be a slowdown due to changes at the IRS and DOJ Tax Division.

Kostelanetz remains “busy … our litigation work has remained steady, but we expect growth,” said Caroline. While recognizing the uncertainty caused by cuts to the federal workforce and the decision to move DOJ Tax Division civil and criminal attorneys to the DOJ Civil Division and Criminal Division, respectively, Ciraolo remains optimistic and Kostelanetz has grown in recent months.

In the past year, Kostelanetz has added former federal attorneys with a wealth of experience, including Victor Suthammanont, former Enforcement Counsel to the SEC Chair, and Karen Kelly, former head of the DOJ’s Tax Division. The firm continues to work on cases involving cross border disputes, international tax compliance and challenges to penalties for failing to report foreign financial accounts, state and local tax issues, appellate matters, and IRS audits, among other things.

You can watch the video here.

About Caroline

Caroline, former Acting Assistant Attorney General of the U.S. Department of Justice’s Tax Division, is a partner with Kostelanetz LLP and founder of its Washington, D.C. office. Her practice focuses on federal, state, and cross-border civil tax controversies, including representation in sensitive audits, administrative appeals, and litigation, providing tax advice, conducting internal investigations, and representing individuals and entities in criminal tax investigations and prosecutions. She also serves as a consulting and testifying expert witness and an independent mediator in tax disputes.