U.S. Tax Court FAQ

Q: What is the Tax Court?

A: The Tax Court is a Federal court of record created by Congress to provide a judicial forum for taxpayers to resolve tax disputes with the IRS.

Q: Can the Tax Court hear any type of tax dispute?

A: No. The Tax Court’s jurisdiction is limited to tax deficiencies, and certain tax related determinations by the IRS such as innocent spouse relief, adjustment of partnership items, transferee liability, interest abatement, worker classification, and review of certain collection actions.

Q: Can I file suit in the Tax Court at any time?

A: In order to file suit in the Tax Court, there must be a specific adverse determination by the IRS. The most common type of adverse determination that allows a taxpayer to petition the Tax Court is the issuance by the IRS of a Notice of Deficiency.

Q: What is a Notice of Deficiency?

A: A Notice of Deficiency is a letter from the IRS to a taxpayer which essentially says that the IRS has determined that the taxpayer owes additional tax. A taxpayer has a certain period of time from the date of a Notice of Deficiency to file a Tax Court petition or the IRS will assess the tax and begin collection activity.

Q: I received a Notice of Deficiency letter from the IRS. Can I just write a letter to the IRS explaining why I do not owe more taxes instead of going to Tax Court?

A: No. A Notice of Deficiency is the IRS’s way of telling a taxpayer that they are finished listening to the taxpayer and have made a final decision that the taxpayer owes additional tax. The only way to stop the IRS from assessing the tax and beginning collection activity is to file a timely Tax Court petition.

Q: Are there any other courts that handle tax cases?

A: Yes. The Federal Court of Claims and the Federal District Courts both handle certain types of tax cases. Each court has certain advantages and disadvantages. You should consult with an experienced tax lawyer to help you decide which court would be best for your case.

Q: What is the advantage to going to Tax Court rather than some other court?

A: The primary reason most taxpayers choose to have their case heard in Tax Court is that a taxpayer can go to Tax Court without paying the disputed amount of tax in advance. Every other court requires that the taxpayer pay the disputed amount, then sue the IRS for a refund. There are other advantages and disadvantages to going to Tax Court depending on the facts of each case. Only an experience tax attorney can advise you as to which court would be best for your case.

Q: I do not owe the taxes that the IRS claims I owe. Do I still need a lawyer to represent me in Tax Court?

A: Yes. It is very important that you have a lawyer representing you in Tax Court, especially if you do not owe the tax. The IRS has determined that you owe the tax no matter what your explanation is. The IRS always has an experienced tax lawyer representing them in Tax Court. You should have an experienced tax lawyer representing you just like the IRS.

Q: Will any lawyer do?

A: Absolutely not. You need an experienced tax lawyer to represent you in Tax Court. You would not hire a foot doctor to do your heart surgery. While there are many excellent lawyers, only a very few lawyers have the tax expertise to represent you in Tax Court. The Tax Code is extremely complicated and the Tax Court has special procedural rules which are strictly enforced. It is very important that your lawyer understand the Tax Code and the Tax Court’s procedural rules.

Q: Is it true that there are simplified Tax Court procedures for cases involving less than $50,000?

A: Yes, but remember that “simplified” does not mean simple, it just means less complicated that the Tax Court’s regular procedures. Even in these types of cases the IRS is represented by a lawyer and a Federal Tax Court Judge presides over the trial. Furthermore, a taxpayer cannot appeal the decision in one of these “simplified” cases.

Contact the Stockbridge law office of David R. MacKusick at 678-369-0761 (Toll-Free: 1-866-408-9426) to schedule a free initial consultation with an experienced tax attorney.