The United States Tax Court: An Overview

 

The United States Tax Court, located in Washington, D.C., is comprised of traveling Judges who preside over civil tax trials in cities throughout the United States. In order to have your case heard in Tax Court, a taxpayer must file a Tax Court Petition within 90 days of receipt of his or her Statutory Notice of Deficiency. This Notice, often called "the ticket to Tax Court", tells you that the IRS has proposed adjustments to your tax return and determined that you owe additional tax (and interest...and maybe even penalties).

If you disagree with the Statutory Notice of Deficiency, you can begin tax litigation proceedings by filing a Tax Court Petition which outlines the reasons why you believe the IRS erred in assessing additional tax against you. Lawyer firm in Illinois. You do not have to pay the amount that the IRS proposes to assess in order to file the Tax Court Petition and to go to Tax Court. The ability to have a judge determine who is right and who is wrong before you are legally obligated to pay the tax is one of the attractions of the United States Tax Court as a forum for resolving IRS tax disputes.

The Tax Court offers a surprisingly relaxed environment in which to attempt to resolve your tax dispute. Tax Court Judges rarely stand on convention, preferring an open dialogue with the taxpayer and the IRS attorney. The Judges prefer that the taxpayer and the IRS stipulate, or agree to, the relevant facts and resolve as many issues as possible prior to trial. IRS attorneys are granted Settlement Authority while representing the IRS in Tax Court and are extremely open to reaching a settlement, if at all possible. If the taxpayer and IRS can reach a basis of settlement, a trial can be avoided.