Nationwide Representation
Tax Court Representation
When the IRS issues a Notice of Deficiency, you have the right to challenge it in the U.S. Tax Court before paying the disputed amount. Attorney James Maule petitions the Tax Court on your behalf, negotiates settlements with IRS counsel, and tries cases when necessary.
The 90-Day Letter
The Notice of Deficiency, commonly called the 90-day letter, is the IRS's formal determination that you owe additional tax. It is issued after the IRS has completed its examination and you have either exhausted or declined administrative appeals.
This notice is significant because it is the only way to access the U.S. Tax Court, which lets you contest the IRS without paying the disputed tax first. If you do not file a petition within 90 days, the deficiency becomes final and the IRS will assess the tax and begin collection.
- You do not need to pay the tax before going to Tax Court.
- The 90-day deadline runs from the date on the notice, not when you receive it.
- Collection activity is generally suspended while the case is pending.
Do Not Miss This Deadline
The 90-day deadline to petition the Tax Court is one of the most unforgiving deadlines in tax law. There are virtually no exceptions.
From the date printed on the Notice of Deficiency. If you are outside the United States, the deadline is 150 days.
If you have received a Notice of Deficiency, contact me immediately. Early action gives me the best chance to build a strong case.
Small Case vs. Regular Case
The U.S. Tax Court offers two tracks: small case proceedings ("S cases") for disputes of $50,000 or less per year, and regular proceedings for larger amounts or when appealability matters.
| Feature | Small Case (S) | Regular Case |
|---|---|---|
| Amount in Dispute | $50,000 or less per tax year | Any amount |
| Procedure | Simplified, less formal rules | Full Tax Court rules of procedure |
| Decision | Not appealable by either party | Appealable to U.S. Court of Appeals |
| Representation | Taxpayers often appear pro se, but attorney representation is recommended | Attorney representation is strongly recommended |
| Typical Timeline | Generally faster resolution | Can take 1-3 years depending on complexity |
The Tax Court Petition Process
From the moment you receive a Notice of Deficiency to the final resolution of your case, here is what to expect.
Receive the Notice of Deficiency
The IRS issues a statutory Notice of Deficiency (also called a 90-day letter) after concluding its examination or after you decline to agree with proposed changes. This letter is your ticket to Tax Court.
File a Timely Petition
You have exactly 90 days from the date of the Notice of Deficiency to file a petition with the U.S. Tax Court. This deadline is absolute and cannot be extended. If you miss it, you lose the right to challenge the deficiency in Tax Court.
Case Assignment and Scheduling
Once your petition is filed, the case is assigned to a Tax Court judge. A trial date and city are set based on the court's schedule. Cases are tried in cities across the country, often in a location convenient to you.
Discovery and Settlement Negotiations
Before trial, both sides exchange documents and information. The vast majority of Tax Court cases settle before trial. IRS counsel often has more flexibility to negotiate than the examining agent did during the audit.
Trial or Resolution
If settlement cannot be reached, the case proceeds to trial before a Tax Court judge (there are no juries in Tax Court). After trial, the judge issues an opinion and decision determining the correct tax liability.
Settlement Negotiations & Appeals
Most Tax Court cases are resolved through settlement rather than trial. I negotiate hard with IRS counsel for the best possible outcome and am always prepared to go to trial if needed.
IRS Office of Appeals
Before or after filing a Tax Court petition, you can request a hearing with the IRS Office of Appeals. Appeals officers are independent from the examination division and have authority to settle cases based on litigation risk.
Tax Court Settlement
After a petition is filed, the IRS assigns the case to IRS Chief Counsel. Settlement discussions often yield better results than the audit stage because counsel evaluates the case from a litigation perspective.
U.S. Court of Appeals
If you disagree with a Tax Court decision in a regular case (not a small case), you can appeal to the U.S. Court of Appeals for the circuit where you reside. This is a full appellate proceeding.
Alternative Payment Arrangements
Even after a final determination, options remain including installment agreements, currently-not-collectible status, or an Offer in Compromise to resolve the balance for less than the full amount owed.
Why Attorney Representation Matters in Tax Court
Court Procedure
Tax Court has its own rules of procedure and evidence. Mistakes in filings, deadlines, or trial preparation can be costly and are difficult to correct.
Legal Complexity
Tax law is among the most complex areas of federal law. Effective Tax Court advocacy requires deep knowledge of the Internal Revenue Code, regulations, and case law.
Settlement Leverage
IRS counsel takes cases more seriously when the taxpayer is represented by a knowledgeable attorney. This often leads to better settlement outcomes.
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