Litigation ENewsletter March 15 2012

Tax Litigation
While most taxpayers do not experience difficulties with tax issues or resolve their problems at an early stage, individuals with continuing tax disputes may choose to resolve their claims against the Internal Revenue Service in federal court. Taxpayers can bring tax litigation in one of three federal courts that operate independently of the IRS. Depending on the case, the Claims Court, District Court or Tax Court may provide the appropriate forum. The taxpayer may choose to bring his or her dispute in these courts prior to completing the IRS internal appeals process, but some judges will not hear a case that has not been through this administrative procedure. Additionally, a tax court judge may fine a taxpayer if he or she feels that the lawsuit was brought to delay tax payment.