FILING A PETITION in Tax Court is the only way you can contest an income tax liability without first paying the tax. If you miss your filing deadline, usually 90 days after the date of the Notice of Deficiency, the tax will be assessed under section § 6213(a). After that you will only be allowed to contest the method of collection. You will have forfeited your right to contest the liability without first paying it.
Not having to pay the tax first makes Tax Court the most accessible of judicial venues for most people. But being able to play without paying has its price. You give up your right to a jury. And your opponent enjoys a presumption of correctness that would exist in no other court. For that and many other reasons it is important to understand the structure of the proceeding and what is happening in each phase.
As a side note, the IRS is forbidden from pursuing collection actions while a case is before the Tax Court, and the court has the authority to order such actions stopped. You may move the court to cease any collection action on liens or levies issued after the issuance of a notice and while a case is pending. The motion should ask the court to rescind the lien or refund any moneys levied. Attach an affidavit to your motion describing what the IRS has done. You will have to prove what the IRS has taken if you are looking for a refund. See Tax Court Rule 55.
I discuss motions in more detail in a later chapter. The court’s rules for motions are in Tax Court Rules Title V, Motions. You may also want to study what Dr. Graves has to say about motions in his Jurisdictionary course.
Tax Court Case Structure
The court sends petitioners a form along with the announcement of a trial date that nicely summarizes the structure of a Tax Court case. Unfortunately, this happens …
The words you see above IN BLUE are active hyperlinks in the E-Book version of “ON YOUR OWN IN TAX COURT.” The E-Book edition contains extensive links to statutes, regulations, case law, and other useful authorities and resources. There is also an Appendix of actual court documents submitted by both sides. The purchase of the book includes a free half hour consultation with the author about your case.
