Facing a Notice of Tax Liability?
If you have been dealt a notice of tax liability from the IRS, perhaps went through the Appeals process, and now have a 90-day window to file with the U.S. Tax Court, you might be doing some research on how to select an attorney to represent you in court.
Filing a Small Case
- You will file a small case for liabilities under $50,000.00.
- The filing fee is still $60.00.
What to Expect: The Process in Detail
Most Cases Do Not Go to Trial
There is no way to predict how this will surely pan out for the taxpayer. However, once a complete tax court petition is filed with the U.S. Tax Court, your attorney will be contacted by the Counsel for the IRS who will send an Answer to the complaint.
Interaction with IRS Counsel and Appeals Officer
- Almost instantaneously, the case will be sent to an Appeals Officer who will work out the nuances of the case.
- They will ask for supporting documentation if applicable or simply start making sense out of the petition.
Experience Matters:
Were all of the issues properly addressed? Was the case law applicable to the particular taxpayer?
Determination by Appeals Officer
Once the Appeals Officer is ready to make a determination, they will send their response back to the Counsel for the IRS who is working the case.
- If all is agreed upon, the Counsel will draft up an agreed order.
- We have had many of these agreed orders drafted 100% in our favor.
When Appeals Does Not Agree
If the Appeals Officer is in disagreement, then a pre-trial order will be drafted as the case will go to court.
Preparing for Trial
Once it is headed in that direction, you must prepare for trial.
Although the court is based out of Washington D.C., you will pick your city for trial at the onset of filing your petition.
You can make this:
- Your hometown
- Or even somewhere you see yourself moving in the next 6 months
Frequently Asked Questions
What is a Notice of Tax Liability?
A Notice of Tax Liability is an official IRS document informing you that you owe a tax debt. It may follow an audit or other assessment and includes steps for disputing the liability, such as filing a petition in Tax Court within 90 days.
When should I file a small tax case?
You should file a small case if your tax liability is under $50,000. This type of case follows a simplified procedure in Tax Court, although the $60.00 filing fee still applies.
What happens after I file a Tax Court petition?
Once your petition is filed, the IRS Counsel responds with an Answer, and your case is generally assigned to an Appeals Officer who reviews your documentation and legal arguments to potentially resolve the matter without trial.
Do most tax liability cases go to trial?
No, most cases are resolved before reaching trial. Agreements are often reached through the Appeals process or through negotiations with IRS Counsel, sometimes resulting in an agreed order.
What if the Appeals Officer disagrees with my position?
If no agreement is reached during the Appeals process, the case proceeds to trial. A pre-trial order will be issued, and you will need to prepare for a court appearance in the city you selected during your petition filing.