Just like Taxpayers make mistakes, the IRS makes them too. Sometimes trying to convince the IRS you don’t owe what they say you do is challenging but relief can be found with the U.S. State Tax Court.
The United States Tax Court is the court we go to when we dispute what the IRS says you owe. About half the time Tax Court judges agree the IRS overcharges. That statistic includes non represented taxpayers and with representation the number is higher.
The Tax Court can hear cases like an improper deficiency notice, a failure to abate a penalty or joint and several liability, review of liens or bank and wage garnishments, among other things.
Tax cases are just like litigation cases. They start with the taxpayer filing a petition. The Government then answers the petition and each side provides the other side with their evidence and laws and arguments they will rely on. There is usually a settlement conference before trial, but if the matter is not resolved, you need to be prepared to actually try your case with witnesses and documents.
The IRS is serious about collection. whether you are a regular wage earner or a celebrity. In January 2023, the IRS went after Beyonce alleging she owed over $2 million in taxes, penalties and interest from 2018 and 2019. But depsite all the money Queen Bey may have, she did not just roll over and pay. In April she filed a petition in Tax Court. Why April? You only have 90 days to file a petition from your notice of deficiency so you have to act fast. Beyonce claims the IRS refused millions of dollars of valid deductions and she should not have to pay penalties because her conduct was reasonable and in good faith.
Beyonce is not alone in this defense. Many taxpayers who come to us have the same argument and they are legitimate. The IRS in fact did not take into account allowable deductions and wouldn’t listen.
After filing their petition in tax court, they got the relief they needed. Be a Beyonce. Don’t just roll over. Let the Tax Court Attorneys at Tomes Law Firm fight the IRS for you today. Call us for a confidential free strategy session at 732-333-0681.