Tax Court Jurisdiction
Tax Court Jurisdiction
TAX COURT JURISDICTION is defined by statute. There are a number of areas over which the court has jurisdiction. Chief among them are: deficiencies, overpayments,[1] interest abatement,[2] wrongfully collected amounts,[3] innocent spouse relief,[4] and worker classification cases.[5] This book deals primarily with tax court jurisdiction in deficiency cases concerning audit related notices of deficiency and determinations of collections due process hearings, although most of the information applies to all types of Tax Court cases. For the most typical cases, Tax Court jurisdiction if based on either a “statutory Notice of Deficiency”[6] following an audit, or a “Notice of Determination” following a Collection Due Process (CDP) hearing. Receipt of either of these notices allows you to petition the Tax Court. The court obtains “personal jurisdiction” over you when you file your petition.
Notice of Deficiency or Determination
Your choices once you have received a Notice of Deficiency are:
1. Pay the amount they say you owe and do nothing else. 2. Pay the amount they say you owe and sue for a refund in district court. 3. Do nothing, let the tax be assessed, wait for the Service to begin collection action and negotiate an offer in compromise (reduced payment) or an installment agreement. 4. File a petition with the United States Tax Court.
The Code requires that your Notice of Deficiency be sent to your “last known address” by certified or registered mail. “Last known address” is a term of art, i.e., a term that has its own special legal meaning. The impressive body of case law dealing with it is beyond the scope of this book. But basically, your last known address is...
[1] § 6512(b), the court may decide if you have made an overpayment of tax and are due a refund. [2] § 6404(i), the court may review IRS failure to abate interest to certain taxpayers who are within specified net worth limits if they bring an action within 180 days of final determination, and may order abatement for abuse of discretion by the IRS. [3] § 6213(a), the court may order wrongfully collected taxes refunded. The IRS may not pursue collection while a case is in Tax Court. They often do anyway. The court may order such collections stopped or refunded under this section. [4] § 6015(e), the court may grant an innocent spouse relief from the taxes demanded on a notice of deficiency. [5] § 7436, the court may, in certain cases, determine worker classification under the employment tax laws. [6] also known as a “90 day letter,”
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.