You’ve been audited by the IRS and the inspection report shows a high number that the IRS claims you owe them. Well you have two options – you either agree with them, pay taxes and get on with your life, or you disagree, get a “deficiency notice” from the IRS and get 90 days. in which you must file a petition with the tax court against the IRS. To be fair, none of the options sound appealing. However, if you do decide to challenge the IRS in tax court, you need to be sure that you are right and they are wrong. The only way to beat the IRS is to present irrefutable evidence that the IRS proves.
Fighting the IRS in tax court requires careful study of your tax rights. To protect yourself, you need to find someone who understands the system and is admitted to tax court. You are more likely to beat the IRS with the help of these qualified tax attorneys. Unlike civil courts, tax courts are not located anywhere. Judges travel to fifty states and hear cases filed with the Tax Court. Again, as in civil courts, there is no jury in tax courts. Tax cases are brought to civil court only when criminal charges are brought against the taxpayer or, in most cases, the defaulter.
Presentation of evidence to the tax court
You must have conclusive evidence to support your case before going to tax court against the IRS. Providing superficial evidence will not work. For example, if you’ve claimed a mileage deduction for your business, you’ll need to keep a mileage log, fuel receipts, and maybe even sales invoices. Once you have presented evidence, the IRS is responsible for accepting it or proving it to be false. Basically, the more documents you can provide to support your claim, the more likely you are to win your case.
Caution – don’t file a case that is frivolous or without adequate and sufficient evidence, in the hope that you will simply win. If the judge thinks you are wasting time in court, you will end up paying the fine with the taxes filed by the IRS.
Small or ordinary tax case
In order to file a petition on the court’s website, you need to state your goal – a minor or ordinary tax case. If the IRS claim is less than fifty thousand dollars, or if you plan to represent yourself, you must file a small tax case. It’s cheaper and more informal than a regular tax court. However, if your tax claim is over fifty thousand dollars, you should file a claim with the tax office and be sure to hire a tax attorney to represent you.
How long can this last
Unlike conventional courts, where a judge can sit down with you, listen to your side of the story, and make the right decision, tax courts work differently. A tax court judge will assess your information and evidence, as well as any other cases presented to them. If the problem is simple, you can get it resolved in a matter of months. However, if complications arise in your case, it is likely that you will not be able to hear the court for at least a year or more.
Can you appeal if you lose?
The records show that the odds of beating the IRS are not that high. However, if your readings are airtight, the decision may be in your favor. The loss of the call will depend on your assignment. If you have filed your case in a small court, you are stuck with the judge’s decision and cannot appeal. While it can be cheaper and more informal to file documents in a small court, this is the biggest downside.
However, if you have filed with a regular tax court and lose, you have the right to appeal. judgment. You have 90 days and must file an appeal with the Court of Appeal within that time. If you think the IRS is wrong, maybe it is time to find a good tax attorney. Do your research, gather all the evidence, and prepare for a legal battle.