New Proposal Could Bring Major Changes for IRS Tax Court

Posted by on Dec 15, 2015 in Tax Advices

New Proposal Could Bring Major Changes for IRS Tax Court


Back in 1987, a system was established for handling cases presented in Tax Court. For 26 years, the process remained relatively unaltered, but over the years there has been a significant increase in the number of cases the Tax Court handled. There have also been so many updates in the way the IRS is managed. All of these changes have combined to convince officials that it’s time to look into a different way to handle tax appeals. Now a new proposal is being considered that could lead to some pretty significant changes for the IRS.

One of the first things that would change is the how the Tax Court considers appeals. When a person owes an outstanding tax debt, the IRS would be required to issue a notice of deficiency as a first step. Individuals must also be given an opportunity to negotiate a settlement. If for some reason, the Tax Court issues a ruling before an individual has an opportunity to respond, there must be available opportunities for the taxpayer to appeal the decision and ask for reconsideration. Under the terms of the new proposal, the appeals division will have the power to offer a settlement for any case right up to the point when the matter gets directed back to Counsel.

When dealing with small cases, it will become customary for Appeals to have six months to try to resolve the matter before the case reverts to Counsel. In big cases, the length of time is within ten days of the case first being scheduled on to the trial calendar, or 21 days before the calendar call.If the Counsel so desires, they will be able to meet with the individual in question when the settlement conference is scheduled. When the case reverts to Counsel, Appeals will be required to provide all documents pertaining to the case up to that point.

The ultimate goal for the new procedures would be to give individuals ample opportunities to negotiate a settlement, gather needed documentation, and have a fair chance to win the appeal. The IRS seems to recognize that the current set-up isn’t working and the new proposal could be a step in the right direction to help taxpayers who get in trouble.

Even the best-intentioned people sometimes make mistakes on their tax returns and those mistakes can cost thousands of dollars to fix. Tax experts estimate that80-95% of individuals who claim expenses like baby-sitting or Tax-Puzzle-Photo4house cleaning on their taxes make an innocent mistake that could trigger an audit.

If you’re audited and such a mistake is found, the IRS could decide to press charges. When this happens, you need the help of a good IRS tax attorney who will help you understand the facts of the case. The IRS tax attorney will handle any paperwork that needs to be filed, while also helping you mount your defense.If you need the services of a good IRS tax attorney, you should contact The sooner you do, the better!1

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