Going to tax court is risky business. Taxpayers typically file petitions for tax court when the IRS has assessed a deficiency resulting from
The decisions for taxpayers to represent themselves or seek counsel depend on the size and complexity of the case. For example, if the notice of deficiency disallows some claimed deductions for lack of substantiation, and the amount of the deficiency is relatively small, clients can probably represent themselves under a small tax case election. However, if more complex issues are involved and the client would benefit from representation by counsel to defend these issues (or if the amount of the deficiency is large), then clients probably will need representation by counsel. Small tax cases are those with tax liabilities under $50,000 (including penalties) for each tax year in question.
We can assist you in filing a petition. After a petition is filed the tax court will assign a docket number to the case. If the Small Tax Case election has been filed the IRS is not required to file an Answer to the petition (unless it has the burden of proof and must make affirmative allegations of fact to support that burden). And if a trial is held, it is conducted informally with relaxed rules of evidence and no briefs required. Neither party may appeal the court’s decision.
Before entering tax court the IRS will usually refer the case to the IRS Appeals division. Around 80% of court cases are settled in Appeals. Our CPAs and Enrolled Agents can represent you in settlement negotiations with the IRS Appeals division and IRS counsel.
If the case does go to court we can recommend an affordable lawyer to handle the trial. Our staff does not practice law and will not be providing legal advice which constitutes the practice of law. However, we will represent you in matters of tax law issues before the IRS Appeals division.