Navigating Tax Court: Filing a Tax Court Petition, Burden of Proof, Discovery, Avenues for Settlement, Key Deadlines

Almost all tax practitioners have assisted with filing or considered filing a Tax Court petition. Taxpayers and their advisers often disagree with IRS determinations or their interpretations of tax legislation. Not confronting these disagreements could prove costly for the taxpayer.

The first and perhaps most crucial determination is whether to file a Tax Court petition. The Tax Court offers the only pre-payment forum to contest the Commissioner’s liability determination. However, taxpayers must consider whether they have a colorable claim for relief, as petitioning the court frivolously can lead to penalties of up to $25,000.

The choice of venue is another principal decision. While the Tax Court offers judges with tax expertise and does not require pre-payment of the asserted deficiency, a refund claim made in the U.S. District Courts or the U.S. Court of Federal Claims could garner a more favorable outcome. District Courts offer jury trials and judges with general, as opposed to tax-specific, knowledge of the law.

Critical to a successful Tax Court outcome are key deadlines that cannot be missed. The taxpayer must receive a valid Notice of Deficiency and make a timely petition request. Once the IRS response is received, the petitioner has 45 days from the date of service to file a reply. Tax professionals preparing returns need to fully grasp the components of the Tax Court, from considering and filing the Tax Court petition through the post-trial brief and opinion to facilitate the resolution of taxpayer issues with the IRS.

Listen as our panel of experienced Tax Court attorneys explains the key components of the Tax Court for taxpayers who disagree with IRS assessments.

1. Navigating Tax Court: introduction
2. Choice of forum
3. Ticket to Tax Court
   1. Statutory notice of deficiency
   2. Notice of determination
4. Tax Court
   1. Filing a timely petition
   2. Discovery procedures
   3. Evidence
   4. Burden of proof
   5. Post-trial briefing/opinion

The panel will cover these and other critical issues:

• Taxpayers who could benefit from and are eligible for an S case (small tax case)
• When not to file a Tax Court petition including frivolous tax arguments
• The contents of a Tax Court petition
• Key deadlines that must be met including filing the petition, trial dates, and taxpayer replies
• When the taxpayer vs. the IRS bears the burden of proof in Tax Court

Learning Objectives

After completing this course, you will be able to:

• Identify key components of a Tax Court petition
• Determine when a taxpayer should (and should not) consider petitioning the Tax Court
• Ascertain when the burden of proof shifts to the taxpayer
• Decide how the Tax Court can be used to resolve outstanding matters with the IRS

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).