United States Tax Court

Under certain circumstances a taxpayer may find themselves in United States Tax Court or have the ability to petition the United States Tax Court regarding a tax matter with the Internal Revenue Service.  The US Tax Court is a “travelling” court in the sense that it is not always in session in all of the areas/jurisdictions the court sits.  A judge will sit before the taxpayer and the IRS and hear the cases presented by both parties.  Taxpayers do have appeal rights to other courts after the tax court has made a decision or determination.

Typically, a taxpayer will find themselves in tax court after the IRS has issued a Notice of Deficiency.  When the IRS issues a Notice of Deficiency to a taxpayer, the taxpayer has 90 days to petition the tax court.  Generally, a Notice of Deficiency is issued to a taxpayer when a taxpayer is audited and the IRS is assessing additional tax.  A taxpayer may be able to make a “small claims” case or claim if the liability that is being disputed is below a certain threshold.

The video below has been prepared by a tax attorney at The McGuire Law Firm to provide additional information related to US Tax Court.  If you have questions relating to the US Tax Court, please feel free to contact The McGuire Law Firm to discuss these matters with a tax attorney.  The McGuire Law Firm has offices in Denver, Colorado and Golden, Colorado for your convenience and offers a free consultation.

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Denver Tax Attorney on IRS Notice CP 2000

An IRS Notice CP 2000 is a Notice of Deficiency.  The notice is issued by the IRS when the IRS is proposing an additional assessment of tax.  The notice will state the items that the IRS is disagreeing with and how such change will impact (increase) your tax liability.

For example, the IRS could state on the notice that they are increasing your income by $30,000 in capital gains not reported on your 1040 and disallowing $15,000 of charitable contributions on your schedule A.  Thus, your total income has been increased by $30,000 and your itemized deductions, which will impact (increase) your taxable income will decrease by $15,000.  In addition to these changes the IRS will state the penalty amounts that you will be assessed with such increase in tax.  For example, you can be assessed an accuracy related penalty if the income you reported is “off” by a certain percentage and you can be assessed interest.

The video below has been prepared by a Denver tax attorney at The McGuire Law Firm to provide additional information regarding a CP 2000 or Notice of Deficiency.  If you have received such notice, are being audited or wish to speak with a tax attorney please contact The McGuire Law Firm to schedule a free consultation.