How to Fight the IRS in Tax Court

IRS agents are people, too. Yes, we want to think that they're cold, heartless people, and a few of them may seem like that at times. However, more importantly, they are humans who can also commit errors. If they committed an error and will not listen to the facts you present, you might need to take the IRS to court. What now? What court do you take them to? How do you do it? And is this going to cost you plenty of case?

A Notice of Deficiency will be received if you can't agree with the IRS on a resolution. This basically states that you have ninety days to file a petition against the resolution in Tax Court. It is best to make your move at once if you don't want the IRS to triumph and you don't wish to pay your tax liability because extensions and appeals aren't entertained after ninety days. You might be able to sue them later and receive a refund, but only after you would have settled the tax liability.

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 final word if the IRS committed a mistake.

If your case is based on the tax code's technical facts, you definitely wish these nineteen judges of the Tax Court to handle it because they're all familiar with the tax law's details. This is also the only court that will handle cases before the disputed taxes are paid. Other courts would need the tax liability to be paid before they can hear your case.

If your case is about the fairness of the IRS or something ambiguous like that, it's best to have it addressed by the U.S. District Court, rather than the Tax Court. This is because decisions are made by a jury of your peers who are likely to be more sympathetic to your case. Other courts also hear tax disputes. However, it is still best to file your taxes the proper way to prevent IRS problems entirely.