While no taxpayer hopes that they will have to appear in the US tax court, human error and inconsistencies happen. Even if you file perfectly, there can be disputes and issues. Fortunately there are many resources available to help you stay informed and prepared for anything. Read on to find 3 things that every taxpayer should know about the US tax court.
The Court is Independent and Judge-Led
The court is completely separate from the IRS and specialized in tax cases. There are no juries, rather a set of expert judges both proside over and decide cases brought before them. The employees of the court are given jurisdiction by congress over tax law. All of these elements help ensure that the court is impartial. If you have legitimate reason to believe there was an error, you can be assured that the tax court is not just trying to grab your money. They will give your case a fair shake.
When and How You Should Appeal to the Court
Most cases begin with an audit from the IRS, which is then appealed by the taxpayer. For example, if the IRS finds a problem with your tax payment, they will inform you via a letter. If you believe that to be in error, you effectively sue the IRS through the tax court. After you receive a notice, you have to file your case within 90 days or else you have agreed to make the payment. You will of course need records and evidence to prove that you don’t owe money to the IRS. Tax attorneys can help you know if you have an effective case. Other issues the US tax court deals with, and that your lawyers can assist you with, include: Offshore Assets, Tax Bankruptcy, Enrollment and Payroll Taxes.
Many Cases End in a Settlement
Fortunately, many cases end amiably in a settlement. Court can be stressful and expensive, so this is a good goal to shoot for. This is also part of why a good lawyer is such an important asset. They can help you navigate the complexities of tax law to find the best deal for all the parties involved.
A case in the US Tax Court can be intimidating and frightening. However, with the right tools, you have nothing to be afraid of. Its independence from the IRS and the number of expert lawyers will help you navigate such a case and get to the best possible outcome.