The U.S. Tax Court is a federal court that provides taxpayers with an independent forum to dispute IRS tax assessments and other tax-related issues. Taxpayers can file a petition with the Tax Court to challenge IRS decisions, such as Notices of Deficiency or penalty assessments, without having to pay the disputed amount upfront.
Key features of the U.S. Tax Court include:
- Taxpayers have 90 days from the date of receiving a Notice of Deficiency to file a petition with the court.
- The court resolves disputes over income tax, estate tax, gift tax, and certain excise taxes.
- Taxpayers can represent themselves or hire a tax attorney or accountant to represent them.
The Tax Court process typically begins with a pre-trial settlement attempt, where the taxpayer and the IRS try to resolve the dispute before going to trial. If a settlement is not reached, the case proceeds to trial, and the court makes a final ruling.
The U.S. Tax Court provides a fair and independent venue for resolving tax disputes, allowing taxpayers to challenge IRS decisions without facing immediate financial consequences.