United States Tax Court Orange County

In the United States Tax Court, the taxpayer can start a case before paying the tax liability asserted by the Internal Revenue Service (IRS).  This is the reason why most of the tax cases are litigated in the United States Tax Court.  In the other federal courts, authorized to hear disputes with the IRS, the taxpayer has to pay the amount in dispute before commencing the case and then sue for refund.

Usually, after receiving a “Notice of Deficiency” from the IRS, a taxpayer has to file within 90 days of the mailing date of the notice a U.S Tax Court petition. It is called a deficiency case. Non-deficiency cases are also heard in the U.S. Tax Court. These non-deficiency cases are usually disputes arising from the denial of collection actions (liens and levies), penalty abatement or other collection alternatives, an offer in compromise; or IRS denials of taxpayer requests for injured spouse relief.  These non-deficiency cases are filed in the U.S. Tax court after the taxpayer has exhausted all IRS Appeal rights.

To start a tax court case, a petition must be filed within 90 days, in deficiency cases, after the date of the mailing of the deficiency notice. However, if the taxpayer is residing outside the United States at the time the notice of deficiency is mail, taxpayer have 150 days to file the petition. Once the petition is files, payment of the underlying tax proposed by the IRS is not required for payment until the case is decided.

If the amount disputed in deficiency cases is $ 50,000 or less for each year involved, taxpayers may chose to have their case conducted under the court’s simplified small tax case procedure, where trials are usually less formal and result in a speedier disposition. In these cases taxpayers often represent themselves. However, it is important to note that pursuant to small tax case procedures, taxpayer can not appeal. Therefore, and due to the complexity of the Tax Court procedural and evidentiary rules, taxpayers usually choose to be represented by tax professionals licensed to practice before the court.

In most Tax Court cases, a mutual agreement is set between the taxpayer and the IRS before the trial.  When the decision is rendered by the presiding judge, the case is then closed in accordance with the judge finding stating the amount of the deficiency, overpayment, or by ordering other relief.  Decisions of the Tax Court are appealable to the U.S. Court of Appeals.

If you have any tax questions or issues with IRS tax court os US district court Contact Moore and Affiliates, PLC located in Orange County to speak with the tax lawyer. 714-541-2500

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