Questions About Tax Court
What does one mean by a tax court?
The tax court is a court that is created by the Congress under Article 1 of the United States Constitution. This court is a federal trial court that deals with issues related to federal income tax. Most of the times, the adjudications may happen before the tax assessments made by the IRS. Tax payers can put forth their issues and matters in front of the court without first paying the disputed tax. The judges of these courts work for a period of 15 years in most situations. Answered below are some of the important questions about the tax court that have been asked by different people:
A person has received a notice of deficiency from the IRS. The notice states that he/she did not file tax returns in 2004 and 5005. However, the person has proof that he/she paid the taxes. Presently, the person wants an extension to file his/her returns. How can the individual get this extension?
If the individual has got a notice, then the notice will clearly state that he/she is not eligible for an extension. The individual will have to create a petition and mail it as early as possible. According to the mailbox rule, the date of filling will be the day the petition is mailed. If the individual does not agree with the tax calculation made by the IRS, he/she may mention it in Section 5 and 6 of the petition. The individual can also request for a trial in the matter. Most of the times, the IRS may contact the person to solve the issue. The individual can put his/her case in front of the appeals officer. However, he/she may not be granted an extension if he/she does not file the petition before the last date. As a result, he/she may have to pay the extra taxes.
Can a person’s attorney sign a tax court’s petition if he/she is not present in the country?
Though some of the attorneys may be admitted into a tax court, they may not have the authority to sign a petition on behalf of their client. If he/she wants the authority to do so, the attorney may have to get an IRS Form 2848 signed by the client along with the petition. If he/she does not get this form, he/she may not be permitted to sign on any petition. One can get the template of the Form 2848 on http://www.irs.gov/pub/irs-pdf/f2848.pdf.
Is it possible to reverse or overrule a decision taken by a tax court?
One may overrule the decision of the tax court by filing an appeal of the decision. One may have a period of 90 days to file the appeal after the judgment has been passed.
What is the difference between formal and informal discovery?
When a person is asked to exchange relevant information and documents with the defense in an informal manner, it is called informal discovery. This is done through a medium called Branerton conference. This is normally done to make sure all the facts of the case are correct so that there are no disputes later. The IRS will also be expected to give the person any documents that he/she needs. However, if this exchange of documents does not happen due to any reason, the individual may have to go to a formal trial depending on the rules of the court.
Can the IRS be employed by the tax court to collect taxes?
A tax court is just an institution to resolve disputes. If a person loses a case in the tax court and if the decision is given in favor of the IRS, the IRS may have the right to enforce the judgment and collect the tax from the person. The tax court may not have to follow up or implement this. However, the tax court may have the right to prohibit the IRS from taking certain kinds of action. However, it will be the decision of the IRS to collect the tax or not.
It is very important for people to file their tax returns. One can get into trouble if one does not file his/her returns or delays in doing so. The IRS and the tax court are co-related and one may have to be aware of all the rules of both these authorities. You may ask a lawyer if you have any further questions about tax courts.
The tax court is a court that is created by the Congress under Article 1 of the United States Constitution. This court is a federal trial court that deals with issues related to federal income tax. Most of the times, the adjudications may happen before the tax assessments made by the IRS. Tax payers can put forth their issues and matters in front of the court without first paying the disputed tax. The judges of these courts work for a period of 15 years in most situations. Answered below are some of the important questions about the tax court that have been asked by different people:
A person has received a notice of deficiency from the IRS. The notice states that he/she did not file tax returns in 2004 and 5005. However, the person has proof that he/she paid the taxes. Presently, the person wants an extension to file his/her returns. How can the individual get this extension?
If the individual has got a notice, then the notice will clearly state that he/she is not eligible for an extension. The individual will have to create a petition and mail it as early as possible. According to the mailbox rule, the date of filling will be the day the petition is mailed. If the individual does not agree with the tax calculation made by the IRS, he/she may mention it in Section 5 and 6 of the petition. The individual can also request for a trial in the matter. Most of the times, the IRS may contact the person to solve the issue. The individual can put his/her case in front of the appeals officer. However, he/she may not be granted an extension if he/she does not file the petition before the last date. As a result, he/she may have to pay the extra taxes.
Can a person’s attorney sign a tax court’s petition if he/she is not present in the country?
Though some of the attorneys may be admitted into a tax court, they may not have the authority to sign a petition on behalf of their client. If he/she wants the authority to do so, the attorney may have to get an IRS Form 2848 signed by the client along with the petition. If he/she does not get this form, he/she may not be permitted to sign on any petition. One can get the template of the Form 2848 on http://www.irs.gov/pub/irs-pdf/f2848.pdf.
Is it possible to reverse or overrule a decision taken by a tax court?
One may overrule the decision of the tax court by filing an appeal of the decision. One may have a period of 90 days to file the appeal after the judgment has been passed.
What is the difference between formal and informal discovery?
When a person is asked to exchange relevant information and documents with the defense in an informal manner, it is called informal discovery. This is done through a medium called Branerton conference. This is normally done to make sure all the facts of the case are correct so that there are no disputes later. The IRS will also be expected to give the person any documents that he/she needs. However, if this exchange of documents does not happen due to any reason, the individual may have to go to a formal trial depending on the rules of the court.
Can the IRS be employed by the tax court to collect taxes?
A tax court is just an institution to resolve disputes. If a person loses a case in the tax court and if the decision is given in favor of the IRS, the IRS may have the right to enforce the judgment and collect the tax from the person. The tax court may not have to follow up or implement this. However, the tax court may have the right to prohibit the IRS from taking certain kinds of action. However, it will be the decision of the IRS to collect the tax or not.
It is very important for people to file their tax returns. One can get into trouble if one does not file his/her returns or delays in doing so. The IRS and the tax court are co-related and one may have to be aware of all the rules of both these authorities. You may ask a lawyer if you have any further questions about tax courts.