Tax Court Petition:
If you have received an IRS Notice of Deficiency (Letter 3219) proposing a tax assessment, you have 90 days to file your Tax Court Petition. The address to file the petition to the Tax Court is 400 Second Street, Washington, D.C. The IRS cannot assess tax until after the 90-day period has passed and the case has been litigated in court.
Tax Tip – It is presumed you received the notice timely if the IRS can show it was mailed to your last known address, even if you did not actually receive it. If you move, you should update your address with the IRS on Form 8822.
The Tax Court Petition must include your statement of facts, why you disagree with the IRS in detail and choice of trial location in the U.S. Make sure to redact your social security number and other sensitive information. If the amount at issues is less than $50,000, you may elect the less formal small case procedures. Either way, the filing fee for the Tax Court Petition is $60 payable to U.S. Tax Court.
Tax Tip – The information provided in the petition to the Tax Court should be given with care, as the IRS can raise a new issue (and thereby seek to collect additional tax) in its response.
After you file your Tax Court Petition, the IRS has either 60 days to file and answer or 45 days to make a motion seeking some form of relief. A petition to the Tax Court may be amended once before an answer is filed. The petitioner has 45 days after service of the IRS’s answer to reply to the allegations. The parties are encouraged to engage in informal discovery and stipulate to issues of fact and law agreed on.
Tax Tip – If requested, counsel may send the case to IRS Appeals prior to trial in an attempt to settle the case without litigation.
The case is placed on the trial calendar and the parties are given 90 days notice of the trial date. The case is heard by a judge without a jury. The Notice of deficiency is presumed correct and the burden of proof is on the Taxpayer to show otherwise.