Tax Court: When the IRS Needs a Judge to Set Them Straight
I don't litigate for sport. Tax Court is a tool, and like any tool, you use it when it's the right one for the job. When the IRS takes an unreasonable position and won't budge, Tax Court is where you make them prove their case.
When Litigation Makes Sense
You got a Notice of Deficiency and disagree. The IRS denied your OIC or installment agreement. An appeals officer sided with the examiner. These are situations where Tax Court gives you a neutral forum.
The 90-Day Deadline
When the IRS issues a Notice of Deficiency, you have exactly 90 days to petition Tax Court. Miss it and you lose the right. I've had clients call on day 89. Don't be that person. Call early.
Leverage Without Trial
Most Tax Court cases settle before trial. The IRS counsel evaluates the 'hazards of litigation' and often agrees to terms they never would have offered administratively. Having a lawyer who actually tries cases changes the negotiation.
Small Tax Case Option
For disputes under $50,000, you can elect the simplified small tax case procedure. It's faster and less formal. The trade-off is the decision can't be appealed. I advise whether this makes sense for your case.