The U.S. Tax Court has jurisdiction over tax issues brought by taxpayers who wish to dispute IRS rulings of tax deficiencies before paying any disputed amount. The Tax Court's jurisdiction includes:
the authority to redetermine transferee liability, make certain types of declaratory judgments, adjust partnership items, order abatement of interest, award administrative and litigation costs, redetermine worker classification, determine relief from joint and several liability on a joint return, review certain collection actions, and review awards to whistle blowers who provide information to the Commissioner of Internal Revenue on or after December 20, 2006.
The Court is composed of 19 Presidential appointees who travel to designated locations for trials. Cases are held before one judge without a jury.
Tax Court Cases
Tax Court cases begin with a petition by the taxpayer, which must be made in a timely manner, along with a fee. Depending on the amount of the disputed taxes, a case may be designated as a small case, in which the procedure is less formal and speedier. The petitioner requests a location for the proceedings, and a date is set. The taxpayer may be represented by a practitioner admitted to the bar of the Tax Court (this individual may or may not be the same as the individual representing you and your business before the IRS).
Appeal of Tax Court Decision or Judgment
If you were granted Small Case status, you cannot appeal the Tax Court decision (but neither can the IRS). If your case is a regular case, you may appeal the decision through the U.S. Court of Appeals. You cannot appeal an opinion, but you must wait for the decision before appealing.
