District Court Refund Litigation
If you disagree with the actions taken by the IRS and want to appeal, you can litigate your appeal in court through district court litigation. If you and the IRS still disagree after the appeals conference, you may be entitled to take your case to the United States Tax Court, the United States Court of Federal Claims, or a United States District Court. These courts are independent of the IRS.
In order to sue for a refund in District Court, you must file an administrative claim for refund with the IRS. If the IRS disallows your claim for refund, you will have two years from the date of the denial of the claim for refund to sue for a refund in District Court to contest the underlying tax liability or penalty. As opposed to Tax Court litigation, the underlying tax must be paid in full before filing an administrative claim for refund.
A refund suit in District Court can be an effective remedy for a dispute with the IRS pertaining to a collection action, tax assessment, or penalty assessment. If you are in dispute with the IRS pertaining to the merits of a tax liability or penalty assessment, contact a tax attorney at Disparte Tax Law today for a free consultation.