Income Tax Appeal Procedure from Notice of Deficiency
From Tax Return Examination through Tax Court
Notice of DeficiencyThe notice of deficiency is jurisdictional and without it you cannot proceed to Tax Court. I have had clients that have received notices of deficiency that were inappropriate. In one case, with the courts prompting we settled for a part of my attorney's fees. Either way, this is one of the most important letters that you will receive in the mail. Save it.
Option To Pay and Claim a Refund or petition to the United States Tax CourtOf course you can pay the tax, penalties and interest. Then you can file for a refund, you will receive a preliminary letter which you can protest to the Appeals Office. There you can elect post appeal mediation and if the case is not settled you will receive a Statutory Notice of Claim Disallowance. After that your options are to file in the United States Ct. of Federal Claims or the US District Court and in either case an appeal goes to the United States Court of Appeals.
If you petition directly to the United States Tax Court typically the matter will be set for trial and your tax attorney can choose the forum most convenient for you. Also as of October 2019 you can limit the scope of the engagement/appearance of the attorney. This is a money savings change in the law.
After trial and a significant amount of paperwork such as drafting the Proposed Findings of Fact and Conclusions of Law and Judgment, you will get a decision. This decision is published nationally. The next level of appeal is United States Court of Appeals.