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.

Contact The McGuire Law Firm to schedule a free consultation with a Denver Tax Attorney.

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.