Federal Tax Matters
The United States Tax Court is a specialized federal court dedicated to resolving tax disputes. It stands out among judicial forums as a unique venue where taxpayers can challenge IRS determinations without first paying the contested amount.
The basics
The United States Tax Court is a specialized federal court dedicated to resolving tax disputes. It stands out among judicial forums as a unique venue where taxpayers can challenge IRS determinations without first paying the contested amount. This distinctive feature offers a significant advantage: it allows individuals and businesses to seek resolution of tax issues without incurring additional financial burden. By providing this opportunity, the Tax Court plays a crucial role in ensuring fair and accessible tax justice for all parties involved.
Filing a petition
If you receive a Statutory Notice of Deficiency (“Notice of Deficiency”) and want your case heard in Tax Court, you must file a petition with the Tax Court within 90 days of the date that the Notice of Deficiency (as indicated on the Notice), or 150 days if the Notice of Deficiency is addressed outside the United States. You can also petition the Tax Court, in certain limited circumstances, for other matters such as a claim for relief from joint and several liability (Innocent Spouse Relief), Final Partnership Adjustments, a disagreement with the outcome of your Collection Due Process Hearing, Notice of Certification of a Seriously Delinquent Federal Tax Debt to the State Department, Declaratory Judgments, and worker classification issues. These matters have different deadlines for petitioning the Tax Court; therefore, it is imperative that you pay close attention to any correspondence you receive regarding a due date for filing a petition with the Tax Court and to consult with a tax professional as soon as possible.
If you missed the deadline
If you’ve missed the deadline to petition the Tax Court, the IRS will assess the tax and proposed penalties. However, you still have several options:
If you believe you don’t owe all or part of the liability, you can:
If you can’t pay the assessed tax or prefer not to dispute it in court, depending on your circumstances, you can:
If you take no action, depending on where you are in the collections process, the IRS may:
Related matters
A Notice of Deficiency often follows an examination of your return, so resolving the underlying issue early can be the difference between a straightforward outcome and a court dispute. If your dispute began with an examination, our IRS Income Tax Audits team can help you respond before a deficiency is assessed, and if you have broader IRS Income Tax Issues, we can map out the full path to resolution. When paying in full isn’t realistic, an Offer in Compromise (including doubt as to liability) may be an alternative to litigating your case.
How we can help
At Azarvand Tax Law, we’re committed to safeguarding your rights with unwavering dedication. Our team of tax attorneys, CPAs, and other professionals offers:
Guidance tailored to your unique situation, so your strategy fits the facts of your case.
Comprehensive support throughout your case, from the first notice to final resolution.
In-depth knowledge of complex tax law and the procedures of the United States Tax Court.
Extensive experience handling challenging tax matters and disputes with the IRS.
Next steps
If you’re considering US Tax Court litigation, time is of the essence. Take the first step towards resolving your tax issues. Email us or visit our contact page to schedule a free 30-minute consultation.
