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By lemaster 14 Nov, 2017

If you are encountering a problem with your taxes, chances are, you have many questions. Only a trained tax attorney can give you the specific answers you seek in regard to your unique situation. However, there are some more general questions that we can provide answers to in this blog post.

Read through the FAQ below to learn more about the US Tax Court and the accuracy related penalty. If you have further questions about your issues, please call the Law Office of Dustin Whittenburg and request a consultation. As a tax and estate planning lawyer, Dustin Whittenburg can provide the answers you seek and the legal advice you need to resolve your situation.

 

What is the US Tax Court?

Established by the Constitution itself, the United States Tax Court is the forum provided for hearing tax-related disputes between taxpayers and the government. Generally, a taxpayer will head to tax court if they and the IRS do not agree on the amount of taxes owed, though the court also hears disputes about IRS collection matters.

If you need to go to tax court, know that you can either represent yourself or hire an attorney who is licensed to practice in tax court to represent you.


How does the US Tax Court get involved in taxpayer/IRS disputes?

Typically, the process begins when the IRS sends a Notice of Deficiency to the taxpayer, informing them that they have paid insufficient taxes and providing an alternative amount. If you receive this letter, you should contact an attorney right away. You only have 90 days to pay the taxes or petition the US Tax Court to hear your claim. An attorney can help you determine which is the best course of action.

After you have filed your petition, usually you can present your case to IRS Appeals before the case is heard by the court.

 

Where is the US Tax Court?

The court itself is located in Washington, DC, but cases are held in cities around the country. If you need to go to tax court, you will probably be able to do so in a city near your home.


What happens during the proceedings?

A case heard in US Tax Court is not like a typical civil or criminal proceeding. There is no jury, cross-examination, or lengthy arguments. You will probably not have to testify, unless you choose to represent yourself. Instead, your attorney will present your case to a judge. After the judge has heard the case, he or she will direct both sides to submit briefs summarizing their size of the case. Then the judge will hand down a decision. This can take a year or more.

Rest assured that even if you lose in US Tax Court, you will not go to jail or have to pay a fine. All that will happen is that you will need to pay the amount of money to the IRS that the judge determines.

 

What is an accuracy related penalty?

The accuracy related penalty is an additional penalty imposed on taxpayers who have underpaid their taxes owing to negligence, disregard of rules or regulations, substantial understatement of income tax, or certain valuation misstatements. Generally, the penalty is 20% of the amount of the underpayment.


How can I avoid having to pay an accuracy related penalty?

The best advice is to simply be as accurate, truthful, and careful as you can in filing and paying your taxes. Seek professional assistance from a tax attorney or accountant if you need it.

If you believe that you have submitted your taxes in good faith and the IRS still attempts to apply an accuracy related penalty, the best thing to do is to contact a tax attorney. A tax attorney can help you understand the IRS’s basis for applying the penalty and help you devise a strategy to prove why you should not have to pay this penalty.

 

What if I have other questions?

The best way to get answers for your specific questions is to contact an attorney. Only an attorney can look at the specific facts of your case and understand how the relevant laws may apply. An attorney will give you the advice you need to move your case forward in the best possible manner.

By lemaster 14 Nov, 2017

If you are encountering a problem with your taxes, chances are, you have many questions. Only a trained tax attorney can give you the specific answers you seek in regard to your unique situation. However, there are some more general questions that we can provide answers to in this blog post.

Read through the FAQ below to learn more about the US Tax Court and the accuracy related penalty. If you have further questions about your issues, please call the Law Office of Dustin Whittenburg and request a consultation. As a tax and estate planning lawyer, Dustin Whittenburg can provide the answers you seek and the legal advice you need to resolve your situation.

 

What is the US Tax Court?

Established by the Constitution itself, the United States Tax Court is the forum provided for hearing tax-related disputes between taxpayers and the government. Generally, a taxpayer will head to tax court if they and the IRS do not agree on the amount of taxes owed, though the court also hears disputes about IRS collection matters.

If you need to go to tax court, know that you can either represent yourself or hire an attorney who is licensed to practice in tax court to represent you.


How does the US Tax Court get involved in taxpayer/IRS disputes?

Typically, the process begins when the IRS sends a Notice of Deficiency to the taxpayer, informing them that they have paid insufficient taxes and providing an alternative amount. If you receive this letter, you should contact an attorney right away. You only have 90 days to pay the taxes or petition the US Tax Court to hear your claim. An attorney can help you determine which is the best course of action.

After you have filed your petition, usually you can present your case to IRS Appeals before the case is heard by the court.

 

Where is the US Tax Court?

The court itself is located in Washington, DC, but cases are held in cities around the country. If you need to go to tax court, you will probably be able to do so in a city near your home.


What happens during the proceedings?

A case heard in US Tax Court is not like a typical civil or criminal proceeding. There is no jury, cross-examination, or lengthy arguments. You will probably not have to testify, unless you choose to represent yourself. Instead, your attorney will present your case to a judge. After the judge has heard the case, he or she will direct both sides to submit briefs summarizing their size of the case. Then the judge will hand down a decision. This can take a year or more.

Rest assured that even if you lose in US Tax Court, you will not go to jail or have to pay a fine. All that will happen is that you will need to pay the amount of money to the IRS that the judge determines.

 

What is an accuracy related penalty?

The accuracy related penalty is an additional penalty imposed on taxpayers who have underpaid their taxes owing to negligence, disregard of rules or regulations, substantial understatement of income tax, or certain valuation misstatements. Generally, the penalty is 20% of the amount of the underpayment.


How can I avoid having to pay an accuracy related penalty?

The best advice is to simply be as accurate, truthful, and careful as you can in filing and paying your taxes. Seek professional assistance from a tax attorney or accountant if you need it.

If you believe that you have submitted your taxes in good faith and the IRS still attempts to apply an accuracy related penalty, the best thing to do is to contact a tax attorney. A tax attorney can help you understand the IRS’s basis for applying the penalty and help you devise a strategy to prove why you should not have to pay this penalty.

 

What if I have other questions?

The best way to get answers for your specific questions is to contact an attorney. Only an attorney can look at the specific facts of your case and understand how the relevant laws may apply. An attorney will give you the advice you need to move your case forward in the best possible manner.

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