United States Tax Court Representation

Notice of Deficiency (Your Ticket to Tax Court)

Before you can file a tax court petition you must receive a notice of deficiency (in some cases a notice of determination), or 90-day letter, from the IRS. This notice tells you how much tax and additions to tax (penalties and interest) the IRS claims that you owe and how the IRS reached their conclusion. The 90-day letter is your ticket to tax court, for without it, you cannot petition the Court. You have 90 days from the date on the notice of deficiency to file a petition with the Tax Court, or, if you reside outside the United States, 150 days. This time limit is critical and cannot be missed.

Where to File

The main office of the United States Tax Court is in Washington D.C., but cases are heard throughout the entire union. When filing a petition you must file Form 5, Request for Place of Trial, to inform the Court where you would like your case heard. In almost all instances, the petitioner’s request for place of trial is granted. However, all documents filed with the Tax Court must be delivered to the Court in Washington D.C. along with the required filing fees. Sometimes, if you pay the amount the IRS claims you owe, Tax Court will not have jurisdiction to hear your case and you will have to file a claim for a refund; and if denied, the typical course of action would be to file a lawsuit in Federal District Court, or the Federal Court of Claims.

Small Tax Cases

A case may be eligible as a small tax case if the amount and additions to tax in dispute are under $50,000 for every single year. Small case trials are held in additional cities than regular cases and rules of evidence are more relaxed, as the Judge can consider any relevant evidence. Furthermore, resolution of a small tax cases are final, whereas in a regular tax case both you and the IRS can appeal the Court’s decision.

After a Tax Case is filed

After you file a petition with the Tax Court the IRS has 60 days to file an answer, unless they receive an extension. If you have not taken this matter to the Office of Appeals before filing a tax court petition, an appeals officer may contact you to try and work out a settlement before trial. You can either meet with the appeals officer or hold a conference call to discuss relevant issues and try to resolve the case. The Appeals officer is entitled to take hazards of litigation into consideration when negotiating a settlement, whereas IRS auditors are not. If you and appeals workout a settlement a stipulation will be filed with the Tax Court resolving the dispute.