Tax Litigation

The Internal Revenue Service (“IRS”) and state and local taxing authorities are aggressive in enforcing tax laws. Despite the fear these tax services invoke, taxpayers have the right to challenge their actions. Most disputes are resolved during the audit or collection stage. Some continue using the IRS’s or state’s internal appeals process. When those fail, litigation becomes an option. If your matter has escalated to litigation, we can help. Our attorneys have substantial experience litigating against the IRS and state agencies. We are also skilled negotiators in settlement discussions to help clients in obtaining an efficient and positive outcome in their case.

Tax Court

U.S. Tax Court is a court of limited jurisdiction. The Tax Court only hears cases where the IRS has found that a taxpayer owes money. To get to Tax Court, a taxpayer must first go through the IRS’s internal appeals process. If your challenge is rejected, you can appeal the United States Tax Court decision and order if you believe you do not owe taxes or that the IRS has taken a position contrary to the law in finding you are liable if you think the IRS is incorrectly interpreting the law.

Actions in Tax Court are heard by a judge, not a jury. Decisions can be appealed to the U.S. Court of Appeals in your Circuit, with one exception. If you owe less than $50,000, you can choose the expedited procedure for small cases. This option gives you a faster resolution of your case but the judge’s decision cannot be appealed.

Federal District Court

If the IRS says you owe money and your attempt to appeal within the IRS fails, you may also sue in U.S. District Court. To sue in United States District Court, you first pay the tax debt in full and then sue for a refund. Suing in federal district court has advantages because you have more flexibility in making arguments in your favor. The matter may be decided by a jury which may be more sympathetic to you than a judge. Not everyone has the money to pay their tax bill and wait for a refund. Decisions in federal district court can be appealed to the U.S. Court of Appeals.

How We Help

If your case has escalated to litigation, there are likely important issues or significant money at risk. However, litigation is not always worth pursuing because of the costs involved and the odds of winning. We will help you determine whether to move forward with your case. If the case does go to court, we work closely with you to develop a winning strategy and build a strong case. Our attorneys will be your advocate both in court and outside it to help you attain a positive outcome in your tax matter.

If you need help with a tax problem, contact us for a consultation.