IRS Tax Court Litigation
Tax controversies can involve proposed tax assessments, tax collection actions by the IRS, or other IRS actions. A Tax Court attorney will be able to prepare your Tax Court petition and prepare to negotiate the best outcome. Tax Court litigation may be the best method for resolving your tax dispute. Once the IRS issues a final notice, taxpayers can generally seek a remedy from the courts. You are entitled to file a Tax Court petition if you have received:
- A notice of deficiency, or
- A notice of determination.
The Tax Court has jurisdiction to decide a variety of types of disputes. Tax Court can be an effective method of resolving disputes as the taxpayer is not required to full pay the tax before disputing it with the Tax Court. If you disagree with the results of an IRS audit, you can dispute the results in Tax Court. Once a taxpayer has exhausted his or her administrative appeal rights and still disagrees with the IRS, the IRS will issue a notice of deficiency to the taxpayer’s last known address. The notice of deficiency will outline the adjustments to the taxpayer’s tax return and will state that the taxpayer has 90 days to file a Tax Court petition. This 90 day deadline is a hard deadline that cannot be extended.
IRS Last Known Address Rule
The IRS is required to send all notices of determination and notices of deficiency to the taxpayer’s last known address. A taxpayer’s last known address is the address that appears on the taxpayer’s most recently filed and properly processed Federal tax return, unless the Internal Revenue Service (IRS) is given clear and concise notification of a different address. If the IRS failed to mail the notice of deficiency to the taxpayer’s last know address, the taxpayer may file a motion for summary judgment on the Tax Court’s jurisdiction over the taxpayer.
CDP Litigation and Rights
In some circumstances, collection actions taken by the IRS can be disputed in Tax Court as well. Therefore, if you have received a Collection Due Process notice, you can file a collection due process appeal. If you disagree with the appeals officer’s determination, you will receive a notice of determination, which will grant you the same appeal rights as a notice of deficiency to file a Tax Court petition within 90 days of the date of the notice of determination.
How to Start a Tax Court Case
You must file a petition to begin a case in the Tax Court. A party who files a petition in response to an IRS notice of deficiency, notice of determination, or notice of certification is called the petitioner. The Commissioner of Internal Revenue is referred to as the respondent in Tax Court cases. There are two types of Tax Court cases, an S case and a Regular case.
To qualify for an S case the following conditions must be met. In a deficiency case, the amount of the deficiency and any additions to tax or penalties–but not including interest–that you dispute for each year must be $50,000 or less to qualify as an S case. In a collection action, the total unpaid tax (including interest and penalties) for all years cannot exceed $50,000 to qualify as an S case. In a request for spousal relief, the total amount of relief sought (including interest and penalties) cannot exceed $50,000. In a worker classification case, the amount of employment taxes in dispute cannot exceed $50,000 for any calendar quarter. In an interest abatement case, the amount of the abatement sought cannot exceed $50,000.
Contact an IRS Tax Court Attorney
If you have received a notice of deficiency or a notice of determination, contact a Los Angeles Tax Court attorney at Disparte Tax Law today for a free consultation. A tax attorney can discuss your case and file a petition with the Tax Court. You will receive an IRS audit letter when the IRS opens an audit of your tax return. You can prepare for an IRS audit by following the guidelines outlined in our IRS audit preparation guide.
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