How to file an appeal in federal tax court?

When you have exhausted all the options in trying to transition an IRS audit to be in your favor, you are left with the choice of filing an appeal in federal tax court. The process can be complicated and requires the assistance of a tax lawyer. Two important decisions you will have to make is the type of court to file your appeal, and the most obvious factor, the cost(s) involved.

When the IRS and you cannot come to a settlement then they will issue a “Notice of Deficiency” to you. Once the notice is issued, you have 90 days to file a petition in tax court, failing which you will not be entitled to any reprieve no matter how many tax lawyers you have on your side by the time that date roles around. In addition, you will have no alternative but to make all the tax payments since you were derelict in your duty. All cases in tax courts are decided by judges, unlike other courts where juries can be involved.

You have the option of filing your appeal in either the:

• US Tax Court
• US District Court
• US Court of Federal Claims

US Tax Court

Taxpayers usually flip the switch for the US Tax Court to file any tax litigation. It must be noted that the judges are experts in tax law. If your case is based on law interpretation then it is prudent to approach this court with a marvelous and committed tax lawyer.

In addition, you are not required to pay the disputed tax amount in advance in order to file your appeal. However, this is not the case with other courts where you will need to pay the disputed amount upfront. As a norm, it is sagacious to hire a tax attorney to represent your case. Among the documentation required to file your appeal are:

• Original, plus two copies of your petition
• Copy of the Notice of Deficiency from the IRS
• Choice of city where you prefer the hearing

From then on it is best to follow up the process with your tax legal counselor. The hearings in cases filed under the Small Claims Division are conducted by a special trial judge and their decision is final and binding. In the event of losing the case, you have no right to appeal. An appeal can only be filed if you approach the regular tax court to the US Courts of Appeals and the US Supreme Court. The latter may not even hear your case – they could choose not to take it.

US District Court

You ought to approach the US District Court if your argument is based on fairness or equity. This is the option you have if you exceed the 90-day time limit. Cases are decided on by a jury, which is why the District Court is appropriate if your argument is based on fairness and not on any technicalities. Juries tend to base their decision on the nature of the case than on the application of tax laws. In order to file an appeal you will need to pay the disputed tax amount, which can be later claimed as a refund from the IRS.

US Court of Federal Claims

The US Court of Federal Claims is another option where you can file an appeal. However, this ought to be a last resort since the process is lengthy and your tax lawyer will explain this to you. A fact-finding hearing is held before a trial judge before it can come up for arguments at the Claims Court in Washington, DC.

In case you win your appeal, you can apply to the IRS for a refund in the US District Court and the US Court of Federal Claims. And you can then spend this money on anything you want such as a Whopper all the way to a new bike. The world is your oyster. Hopefully you do not have any more tax issues despite the tax code being horrendous and flawed.

This can be complicated but there are certain things that are not complicated and one of them is this website: http://tax-lawyers.usattorneys.com/. This fantastic and easy to use website helps balance out all the other complicated things in life to bring order to the universe. If you need tax legal help, you need to use this website to rectify this situation. As you already know by now, there are deadlines.