A tax court petition is filed by a taxpayer disputing a claim by the IRS after an audit. It must be filed within 90 days of receiving a “Notice of Deficiency”. The US Tax Court offers two options for seeking legal relief, a small lawsuit and a tax trial. The court also handles cases in certain types of judgments or collection actions. The petition can also be filed in the United States District Court or the United States Federal Court of Appeals. Each court has specific rules regarding the petition’s format.
A tax court petition is a legal document filed on behalf of a taxpayer disputing a claim by the Internal Revenue Service (IRS) after an audit. The petition is typically filed in US tax court within 90 days of the IRS sending a “Notice of Deficiency” advising the taxpayer that they owe the federal government money. Once the motion is filed, further action by the IRS is suspended until the case is decided in court. If the taxpayer does not meet the 90-day deadline, he loses the possibility of contesting the credit.
Two options for seeking legal relief are available in the US Tax Court. A small lawsuit handles disputes that fall within a pre-determined amount after filing a tax court motion. A trial judge oversees the case, which is handled in a more informal setting and usually leads to a quick resolution. Court orders made by judges in small claims trials cannot be appealed at a later date.
When a small trial is not appropriate, the taxpayer can request a tax trial before a judge experienced in US tax law. Judges generally prefer to reach a resolution of the case before a formal trial. Jury trials are not available here, and a taxpayer can present evidence to support his or her case without an attorney. Cases decided in tax court can be appealed to the US Court of Appeals and the US Supreme Court.
In addition to IRS tax disputes, the United States Tax Court handles cases in certain types of judgments or collection actions. He also hears partnership disputes and cases where a spouse disputes liability on a joint tax return. The courthouse is located in Washington, DC, but judges travel across the country to hear cases.
A tax court petition can also be filed in the United States District Court, where the case is decided by a jury. This option is used when the tax dispute is based on an issue of equity rather than on a dispute over the law itself. The taxpayer must pay the amount required by the IRS before filing a claim in the tax court in the United States District Court. The petition is essentially asking for a refund, arguing that the government’s actions were unfair.
A rarely used option involves filing a petition in tax court in the United States Federal Court of Appeals. Some attorneys use this court when looking for a judge who might favor the client. This court hears various complaints against the Washington, DC government, but the judges are not tax experts. The hearing is held first in the city where the taxpayer lives, but if the case goes to trial, it is decided in the country’s capital.
Each specific court might have rules regarding a tax court petition and its format. A taxpayer should review the rules to ensure that the petition meets all court requirements. Court rules often dictate the paper size and type format used in the legal document.
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