The IRS Tax Court: Your Arena To Combat The IRS
IRS auditors are people, as well. Yes, they might look like they’re merciless and cold. But they also commit errors. In the instances and situations where they may be committing an error but simply will not consider the truth and proof that you present to them, you may have no other option than to take the IRS to court and fight for what’s fair. So now what? What court do you take them to? How is it achieved? Will this cost you money?
If, for whatever reason you cannot agree to a resolution with the IRS, then you will subsequently get what’s called a Notice of Deficiency. This is a ninety-day notice that states how long you have to file a petition to the proper court which presides over these matters. This particular court is the Tax Court. Receiving this letter is hightly essential because after those ninety days have passed, you have absolutely no options. You cannot appeal, and you cannot request for an extension. That’s the end of the story, and the IRS will have won without a fight. You’ll have to pay your tax liability. You can sue and receive a refund later, but only after the tax liability is settled. So when you receive that Notice of Deficiency, make sure you act upon it at once. You need to file a response declaring that you disagree with the IRS’s resolution.
The U.S. Tax Court was established in 1923. The 19 judges that comprise it are all authorities in tax law. To deal with tax litigation, they routinely travel across the country. These judges have the last verdict if the IRS made a mistake.
Numerous people opt to take their case to the U.S. Tax Court because it’s the only court that will essentially make a verdict on your case before you even pay the taxes that are in dispute. All of the other courts make it a necessity that the taxes are first settled before the case can be addressed by the court. Those who can’t settle their tax liability will not have the advantage of the courts. This is also the court you wish to handle your case if you are basing your argument on technical data and details of the tax code. These nineteen judges fully grasp the nitty gritty details of the tax law and are actually considered the experts in most IRS problems.
Your case is more appropriately addressed by the U.S. District Court rather than the Tax Court, however, if it is something ambiguous such as the IRS’s fairness. A jury of your peers will make the decisions, and they will be more likely to sympathize. Other courts also address tax disputes. But it’s still best to avoid IRS problems altogether, so file your taxes the proper way.
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