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The purpose of Tax Court

On Behalf of | Jun 24, 2022 | Tax |

Dealing with the Internal Revenue Service in a U.S. Tax Court might seem daunting to some. Perhaps they don’t understand the purpose of the court or why they may need to file litigation. Sometimes, the IRS and a Texas taxpayer could have a disagreement they cannot resolve without the court’s determination. In some cases, the court may rule in the taxpayer’s favor, putting an end to IRS collection action.

Tax court and the taxpayer

Contrary to what some might believe, tax courts are not part of the IRS. The courts exist independently and intend to provide taxpayers with a way to resolve disputes. Also, some differences exist between tax courts and other federal courts. Tax courts involve hearings before a judge, and no jury decides on the case.

A taxpayer may sue the IRS in tax court over disagreements from an audit. After filing an appeal that does not lead to a desirable conclusion, taxpayers with a strong case may find the tax court judge sees things their way.

The case could end with a settlement that both the IRS and taxpayer might find agreeable. If the taxpayer does not like the outcome, seeking further litigation in another federal court may be possible with regular tax court cases.

Appearing in front of the tax court

Anyone who takes a case to tax court must provide evidence to prove their case. Be aware that the IRS can also sue a taxpayer in tax court. Those who owe back taxes might not wish to ignore their collection notices. The IRA may take further actions, such as liens, levies and filing a lawsuit in federal tax court.