Although over 85% of tax cases get resolved at IRS appeals, there are situations where the taxpayer and the IRS can’t resolve a tax dispute. If you feel that the IRS owes you a tax refund or if you feel that the amount of taxes that the IRS claims you owe is incorrect, tax litigation may be a good option for you! A highly qualified tax lawyer with a Masters of Law in Taxation (LL.M.) is the best person to handle your tax dispute in court because you want an attorney who is both highly trained and experienced in tax litigation as well is educated and knowledgeable regarding the intricacies of federal tax law.
What options are available to litigate my tax case?
Litigating a tax case in tax court is the most popular choice amongst taxpayers because this is the only option where you don’t have to prepay your tax before going to court. While the tax court is a very desirable forum to litigate a tax dispute, tax court is not always the best or a possible choice for your tax dispute. If you believe you are entitled to a refund for taxes paid to the IRS or if you miss the deadline to file a petition with the Tax Court, your best option to litigate your tax case is with the United States District Court.
Determining which choice of forum is the best option for you requires a skilled tax lawyer. Contact Dallo Law Group for a FREE consultation to discuss your tax litigation options!
What tax cases can be litigated in Tax Court?
The most common tax case that is litigated in tax court are audit re-determinations where you petition the Tax Court to re-determine (reconsider) your tax liability. After the audit is complete, the IRS will issue a Notice of Deficiency (Letter 531-T) indicating that you can file a petition with the tax court within 90 days. Once the petition is filed with the Tax Court, the tax lawyers of Dallo Law Group will ensure that all collection activities by the IRS, including any levies and wage garnishments, will cease while your case is pending with the court.
In addition to audit re-considerations, you can petition the tax court if you received a (1) Notice of Determination concerning collection action or worker classification; or (2) Notice of Determination concerning request for joint and several liability (innocent spouse claims).
***IMPORTANT NOTE*** If a petition is not filed with the Tax Court within 90 days following the date the Notice of Deficiency or Notice of Determination is mailed, the Tax Court CAN NOT hear your case and your only option is to prepay the tax and sue for a refund in District Court or the Court of Federal Claims. This is a firm deadline and is your ticket to tax court. If you have received a Notice of Deficiency or Notice of Determination, contact us as soon as possible to schedule a free consultation to discuss your rights and to prevent you from losing the ability to litigate in Tax Court.
Can I appeal my case if I do not receive a favorable outcome in court?
You have the opportunity to appeal your case if you are unhappy with the outcome at trial. However, your appeal rights and procedures depend on which forum the tax case was litigated (i.e. tax court, district court, etc.) Contact the tax attorneys of Dallo Law Group to discuss your tax litigation appeal!
What tax cases can be litigated in District Court?
If you miss the deadline to file a petition with the Tax Court, you must prepay your tax and sue for a refund in District Court or Court of Federal Claims if you want to litigate your case. There may also be situations where district court is preferable over Tax Court, such as where a jury trial in District Court would be the best option given the facts and circumstances of your case.
Some cases can only be litigated in district court. For instance, trust fund recovery penalties (responsible person penalty) can only be litigated in district court. Also, criminal tax matters are always litigated in district court.
An experienced tax attorney can help you determine whether your tax case should be litigated in District Court. Contact us today!