U.S. Tax Court Litigation

If you receive a Statutory Notice of Deficiency (“Notice of Deficiency”) and want your case heard in Tax Court, you must file a petition with the Tax Court within 90 days of the date that the Notice of Deficiency (as indicated on the Notice), or 150 days if the Notice of Deficiency is addressed outside the United States. You can also petition the Tax Court, in certain limited circumstances, for other matters such as a claim for relief from joint and several liability (Innocent Spouse Relief), Final Partnership Adjustments, a disagreement with the outcome of your Collection Due Process Hearing, Notice of Certification of a Seriously Delinquent Federal Tax Debt to the State Department, Declaratory Judgments, and worker classification issues. These matters have different deadlines for petitioning the Tax Court; therefore, it is imperative that you pay close attention to any correspondence you receive regarding a due date for filing a petition with the Tax Court and to consult with a tax professional as soon as possible.

If you’ve missed the deadline to petition the Tax Court, the IRS will assess the tax and proposed penalties. However, you still have several options:

1. Disputing the Liability in Court. If you believe you don’t owe all or part of the liability, you can:

Pay the full amount assessed (excluding interest and penalties)

File a refund claim with the IRS

File a refund suit in U.S. District Court or the U.S. Court of Federal Claims

2. Alternatives to Court Disputes. If you can’t pay the assessed tax or prefer not to dispute it in court, depending on your circumstances, you can:

File an innocent spouse claim

Request an audit reconsideration

Submit an offer in compromise (doubt as to liability)

3. IRS Collection Actions. If you take no action, depending on where you are in the collections process, the IRS may:

File a lien on your property

Levy your assets (retirement accounts, bank accounts, etc.)

Garnish your payments and/or wages

Suspend or revoke your U.S. passport

Remember:

The right to petition Tax Court is time-sensitive and issue-specific

Failing to act promptly can result in losing your right to challenge the IRS’s determination in Tax Court

Always respond quickly to IRS correspondence about your right to petition