Discover more from Tax Court Help
Small Case Procedures
If the amount in dispute is under $50,000, you may opt to have your case tried under the “Small Case Procedures." See Section 7463. The advantage is that there are a few more places in the country where they try small cases, so you might not have to travel as far. But other than a savings on travel costs, I can’t think of a good reason why you would choose the small case procedures. Most importantly, you give up your right to appeal the case if you lose. My impression is that the only leverage you have in Tax Court is the possibility that you will appeal a decision. Judges hate having their decisions overturned on appeal. You are asking to be abused if you give up your right to appeal. And another important difference is that under small case procedures, the rules of evidence (FRE) are not strictly enforced. While that may appear to mean that you have less to learn, from what I’ve learned, the rules of evidence benefit the petitioner (you) more than the respondent when the petitioner takes the time to learn them. I believe relaxed enforcement of the FRE works to the advantage of the IRS. The disadvantages of choosing to use small case procedures appear to me to outweigh the advantages. See the FREE REPORT
called "The Biggest Tax Court Mistake" for more information and a sample motion for changing your case to a regular Tax Court Case.
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