J. Winston Krause – Top Attorney
Austin, TX WW/Press/ – J. Winston Krause, Founding and Managing Attorney of Krause & Associates is recognized and distinguished in the Top Attorneys of North America 2025-2026 edition.
The relationship between business strategy and tax planning often creates a complex balancing act for entrepreneurs and established companies alike. While tax optimization remains important, the fundamental question every business owner must ask is: should tax consequences drive business decisions, or should profitable opportunities take precedence?
At Krause and Associates, they have built their practice on a clear philosophy that has guided countless clients to success. They believe business trumps tax matters, and when faced with a choice between securing an excellent tax result at the risk of losing a business opportunity or pursuing a profitable venture regardless of tax implications, smart entrepreneurs secure their profits first.
This approach has proven invaluable across decades of practice, helping clients navigate everything from routine tax disputes to groundbreaking cases that shape taxpayer rights. Here’s why prioritizing business success over tax optimization creates stronger, more resilient companies—and how expert legal representation makes all the difference when tax issues arise.
Many business owners fall into the trap of letting tax considerations dictate their strategic decisions. They pass up lucrative partnerships, delay expansion plans, or avoid profitable ventures simply because the immediate tax implications seem unfavorable. This backwards approach often costs more in lost opportunities than any potential tax savings could justify.
Consider a growing technology company that receives an acquisition offer significantly above market value. The tax consequences might be substantial, but the business opportunity could be transformational. A tax-first mindset might lead to negotiations that focus primarily on structuring the deal for optimal tax treatment, potentially jeopardizing the entire transaction. A business-first approach recognizes that securing the deal creates value that far exceeds any tax burden.
This philosophy doesn’t mean ignoring tax planning entirely. Rather, it means understanding that taxes are a cost of doing profitable business, not the primary factor driving business strategy. Smart tax planning should support business objectives, not constrain them.
Even with sound business decision-making, tax controversies can emerge that require specialized legal expertise. The complexity of modern tax law, combined with increasingly aggressive IRS audit practices, means that business owners need advocates who understand both the technical aspects of tax law and the practical realities of running a business.
Krause and Associates represents taxpayers in the U.S. Tax Court, handling cutting-edge cases that often involve unprecedented legal issues. This representation goes beyond routine dispute resolution—we’re actively involved in formulating new, taxpayer-friendly precedents that benefit our clients and the broader business community.
Their practice encompasses several specialized areas where businesses frequently encounter IRS challenges: The majority of cases they file in Tax Court ultimately settle, often because IRS auditors take unreasonable positions that don’t withstand legal scrutiny. This settlement rate reflects both the strength of their legal arguments and their deep understanding of how tax law applies to real business situations.
The Tax Equity and Fiscal Responsibility Act (TEFRA) created complex audit procedures for partnerships with more than 10 partners. These cases often involve intricate legal and procedural issues that require deep expertise in both partnership tax law and federal court procedures. Krause successfully represented partnerships through these challenging audits, protecting both the entity and individual partners’ interests.
When the IRS suspects unreported income but lacks direct evidence, they often employ the net worth method—analyzing increases in a taxpayer’s net worth to infer additional income. These cases require sophisticated legal defense strategies that challenge both the IRS’s methodology and their underlying assumptions about taxpayer behavior and record-keeping.
Proper documentation of business expenses remains one of the most common areas of IRS challenge, particularly for small businesses and independent contractors. We help clients understand substantiation requirements while defending legitimate business deductions when disputes arise.
Their practice extends well beyond defending against IRS actions. They actively pursue refunds for clients when the IRS makes procedural errors, improperly characterizes losses, or inappropriately imposes penalties. This offensive approach to tax representation ensures our clients receive fair treatment under the law.
Many taxpayers don’t realize they have grounds for refund claims when the IRS makes mistakes during audits or collections processes. These procedural errors can result in overpayments that remain unaddressed unless taxpayers take affirmative action. We identify these opportunities and pursue them aggressively on our clients’ behalf.
J. Winston Krause brings exceptional qualifications to every client engagement. Certified as a specialist in Tax Law, Estate Planning, and Probate Law, he combines deep technical expertise with practical business understanding developed over decades of practice.
His legal credentials include licensure to practice before the United States Supreme Court, U.S. Court of Appeals for the Fifth Circuit, U.S. District Court for the Western District of Texas, United States Court of Claims, and the U.S. Tax Court. This broad jurisdictional authority ensures clients receive seamless representation regardless of where their cases may proceed.
Companies that embrace business-first decision-making consistently outperform those paralyzed by tax considerations. They move quickly on opportunities, adapt to market changes, and build sustainable competitive advantages. When tax issues arise—as they inevitably do for growing businesses—they address them with qualified legal representation rather than allowing fear of tax consequences to constrain business strategy.
This approach requires confidence that expert legal help is available when needed. Knowing that experienced tax attorneys can handle disputes, negotiate with the IRS, and protect business interests allows entrepreneurs to focus on what they do best: building profitable enterprises.
The most successful business owners understand that taxes are a manageable cost of success, not an insurmountable barrier to growth. They make decisions based on business fundamentals—market opportunity, competitive advantage, and profit potential—then address any resulting tax issues with appropriate professional guidance.
The intersection of business strategy and tax law will always present challenges for growing companies. The key is maintaining proper perspective: pursue profitable opportunities first, then address tax implications with expert legal counsel when necessary.
Attorney Krause’s educational foundation includes a law degree from SMU School of Law and undergraduate studies at The University of Texas, providing both the theoretical grounding and practical training necessary for complex tax representation.
At Krause and Associates, they have built their practice around supporting this philosophy while providing the specialized legal representation that businesses need when tax controversies arise. Their track record in Tax Court, our success in settlement negotiations, and our role in developing taxpayer-friendly precedents reflect a deep commitment to protecting business interests within the complex framework of federal tax law.
Whether you’re evaluating a significant business opportunity, facing an IRS audit, or dealing with complex partnership tax issues, remember that business success should drive your decisions. Expert legal representation ensures that tax matters support rather than constrain your entrepreneurial objectives.
Krause and Associates represents taxpayers in the Tax Court to contest over cutting edge and unprecedented issues. On account of their legal
expertise, they duly formulate new and taxpayer-friendly laws as the result. Most of the cases they file in the Tax Court, they settle primarily due to the overly zealous auditors as well as the unreasonable position they take with taxpayers and their representative.
Their areas of experience include TEFRA partnership cases, unreported income cases where the IRS uses the net worth method to prove income,
business expense substantiation among others. They also represent diverse clients on issues ranging from suing for refunds involving IRS procedural errors, improper loss characterization and the inappropriate imposition of penalties.
Winston J. Krause Attorney at Law is licensed to practice law in Texas and is a member of the bar. He is also qualified to practice before the United States Supreme Court, U.S. Court of Appeals for the Fifth Circuit, U.S. District Court, Western District of Texas, United States Court of Claims and the U.S. Tax Court.
The Top Attorneys of North America, a New York based publication, distinguishes and profiles leading attorneys who have reached a recognizable degree of success and leadership in their field. The directory is valued for promoting awareness of the accomplishments within the North American legal community.
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