Tax Court Litigation — Pennsylvania Tax Attorney
Challenging the IRS in the United States Tax Court
When a taxpayer and the Internal Revenue Service (IRS) cannot resolve a dispute through examination or the IRS appeals process, the United States Tax Court provides a judicial forum for resolving the disagreement. For Pennsylvania individuals and businesses, Tax Court litigation offers an important feature: in most cases, you can dispute the tax before paying it.
What Is the United States Tax Court?
The United States Tax Court is a federal court that hears disputes between taxpayers and the IRS. Its roots trace back to the Board of Tax Appeals created in 1924, and it was established in its current form as a court of record by the Tax Reform Act of 1969. The Tax Court operates independently of the IRS and hears matters such as challenges to notices of deficiency, certain penalty determinations, and certain collection actions.
Tax Court judges travel to hear cases in cities across the country, including Philadelphia, which means Pennsylvania taxpayers generally do not need to travel to Washington, D.C. for trial.
Filing a Tax Court Petition: Deadlines Matter
A taxpayer generally begins a Tax Court case by filing a petition within 90 days of the date on a notice of deficiency (150 days if the notice is addressed to a person outside the United States). This deadline is strict and generally cannot be extended. The petition sets out the taxpayer’s position and identifies the issues in dispute. A tax attorney can help prepare a petition that states your position clearly and completely and is filed on time.
Who Can Represent You in Tax Court?
Taxpayers may represent themselves in Tax Court. Otherwise, representation requires admission to practice before the Tax Court. Attorneys may be admitted on application, while non-attorneys — including CPAs and enrolled agents — may represent taxpayers in Tax Court only if they pass the Tax Court’s admission examination. Because Tax Court litigation is a judicial process involving pleadings, evidence, and legal argument, many taxpayers choose to be represented by a tax attorney admitted to practice before the court.
Small Tax Cases vs. Regular Tax Cases
Small tax cases (“S cases”)
If the amount in dispute is $50,000 or less for each tax year at issue, a taxpayer may elect simplified, less formal procedures. A key trade-off: decisions in S cases are final and cannot be appealed by either side. Because there is no appeal, it is important to understand the consequences of this election before making it — something a tax attorney can help you evaluate. Small business owners weighing the cost of a dispute can also find general tax and compliance resources through the U.S. Small Business Administration.
Regular tax cases
Disputes over larger amounts follow the Tax Court’s standard procedures, which may include formal legal briefs setting out each party’s position on the facts and the law. Regular case decisions can be appealed — for most Pennsylvania taxpayers, to the U.S. Court of Appeals for the Third Circuit.
How a PA Tax Attorney Can Help with Tax Court Litigation
Every case is different, and no attorney can promise a particular result. What a Pennsylvania tax attorney can do in a Tax Court matter is help you evaluate whether litigation makes sense compared to other options, meet the filing deadlines, prepare the petition and any briefs, gather and present evidence, negotiate with IRS counsel — many Tax Court cases settle before trial — and advocate for your position before the court. This applies whether you are an individual taxpayer or a business, from a sole proprietorship to a company registered with the Pennsylvania Department of State.
Talk to a Pennsylvania Tax Attorney About Your Dispute
If you have received a notice of deficiency or are considering challenging an IRS determination, the attorneys at Premier Legal Solutions, LLC are available to discuss your situation. Call (267) 245-0649 to schedule a consultation.
Attorney Advertising. This page is for general informational purposes only and does not constitute legal or tax advice. Reading this page or contacting the firm does not create an attorney-client relationship. Outcomes depend on the specific facts and circumstances of each matter, and prior results do not guarantee a similar outcome.