Choosing the forum
For federal taxes, the United States Tax Court hears cases before the tax is paid, after the IRS issues a notice of deficiency, and the petition deadline is strict. Alternatively, a taxpayer can pay the tax, file a refund claim with the IRS, and then sue for a refund in a federal district court or the Court of Federal Claims. Each forum has different procedures, judges, and precedent, and the choice can affect how the case unfolds. The Tax Court also has a simplified procedure for smaller disputes. Some collection disputes reach the Tax Court through the hearing process rather than through a deficiency notice.
New York tax disputes
New York State tax disputes generally move from a notice to either a conciliation conference or a petition before the Division of Tax Appeals, where an administrative law judge hears the case. Decisions can be reviewed by the Tax Appeals Tribunal, and from there by the courts. New York City has its own tax appeals tribunal for city taxes. Deadlines run from the date of each notice, and they are enforced closely. If both a federal and a state dispute concern the same income, coordinating them matters, since an outcome in one often has to be reported to the other.
Preparing a case
Many tax cases settle before trial, often through Appeals or with government counsel, but preparation shapes those discussions. The record usually includes the returns, the examination file, records supporting your positions, and sometimes testimony from people who prepared or relied on the documents. In court, the burden of proof often rests with the taxpayer on factual issues, though there are exceptions. Bring every notice you have received, with dates. In a first meeting we confirm which deadlines are running, compare the forums available to you, and identify the issues most worth litigating.
