IRS Tax Court Petitions

When a tax dispute cannot be resolved through the audit or appeals process, the United States Tax Court provides taxpayers with an independent judicial forum to challenge IRS determinations. Filing a Tax Court petition is a critical step that preserves your right to contest an assessment before paying it -- and it must be done within strict statutory deadlines. At Lanphier LLP, we have the ability to file and litigate Tax Court petitions directly, thanks to Dennis M. Lanphier's law license.

This is a significant advantage for our clients. Most CPA firms must refer Tax Court matters to outside attorneys, which means bringing in professionals who are unfamiliar with the case and must spend time and money getting up to speed. Because Dennis is both a CPA and a licensed attorney, our clients benefit from seamless continuity -- the same advisor who understands the tax issues, has worked on the audit and appeals, and knows every detail of the case can also file the petition, prepare the legal briefs, and represent you in court.

When a Tax Court Petition Is Necessary

A Tax Court petition is typically filed after the IRS issues a statutory notice of deficiency -- commonly known as a "90-day letter." This notice formally proposes an additional tax assessment and gives the taxpayer 90 days (150 days if the notice is addressed to a person outside the United States) to file a petition with the Tax Court. If no petition is filed within that window, the proposed assessment becomes final and the IRS can proceed with collection.

Tax Court petitions may also be appropriate in other circumstances, such as challenging a determination by the IRS regarding innocent spouse relief, challenging the denial of interest abatement, or contesting certain collection actions. We evaluate each situation carefully to determine whether a Tax Court petition is the most effective course of action.

The Tax Court Process

Once a petition is filed, the case enters the Tax Court's docket and both parties engage in a process of discovery, stipulation of facts, and pre-trial preparation. Many Tax Court cases are resolved through settlement negotiations after the petition is filed -- the act of petitioning itself can prompt the IRS to take a more reasonable position. For cases that proceed to trial, the Tax Court conducts regular sessions in Denver and other cities across the country.

Our approach to Tax Court representation is thorough and strategic. We develop a complete litigation strategy from the outset, including identification of the legal issues, assessment of the relevant case law, and preparation of the factual record. We also explore every opportunity for favorable settlement, recognizing that a well-negotiated resolution is often in the client's best interest.

Small Tax Cases

For disputes involving $50,000 or less per tax year, the Tax Court offers a simplified "small tax case" (S case) procedure that is less formal and less expensive than regular proceedings. While decisions in S cases cannot be appealed, the streamlined process can be an efficient way to resolve smaller disputes. We help clients determine whether the S case procedure is appropriate for their situation and represent them through the simplified process when it is.