The United States Tax Court is a special court that reviews tax disputes between taxpayers and the Internal Revenue Service (“IRS”) prior to the payment of the disputed tax liability.  The Tax Court allows the taxpayer to use the forum without having paid the disputed tax liability.

Tax Court cases generally start after IRS examination or audit of a taxpayer’s tax return. After issuance of a series of  preliminary notices and subsequent disagreement between the taxpayer and the IRS with respect to payment, the IRS determines the amount of the tax deficiency and issues a series of formal notices, which includes the statutory notice of deficiency (“ninety day letter”) that gives the taxpayer 90 days to file a Tax Court petition.

The IRS (i.e., ) is represented by the Office of Chief Counsel or a delegate.  Taxpayers are represented by a tax professional or they may represent themselves.  A filing fee must be paid when the taxpayer files a Tax Court petition and once the petition is filed, any payment of the underlying tax liability is usually postponed until the case has been decided by the Tax Court.

Tax Court cases involving tax disputes of $50,000 or less allow taxpayers to elect to have their cases conducted under a simplified small tax case procedure.  Also, trials under the small case procedure generally are less formal and result in a speedier disposition. However, those decisions entered pursuant to small case procedures are not appealable and may not be cited as precedent in other cases.

Tax Court cases are calendared for trial on a first in/first out basis.  Tax Court trials are conducted before a judge (without a jury).

Finally, the vast majority of Tax Court cases are settled by the parties through a mutual agreement, avoiding the necessity of a formal trial.  If a trial is deemed necessary, a decision is issued by the presiding judge setting forth findings of fact, law, and an opinion. The Tax Court decision closes the case and the decision is published with precedential effect in other tax cases.

For more information or questions about your specific tax matter, please contact the office or click CONTACT US.

"The hiring of a lawyer is an important decision that should not be based solely upon advertisements.  Before you decide, ask us to send you written information about our qualifications and experience."