Jurisdictional and Procedural Requirements in Deficiency Litigation

Jurisdictional and Procedural Requirements in Deficiency Litigation

When contemplating filing a petition for redetermination, the taxpayer must be sure to comply with certain procedural and jurisdictional requirements. If the taxpayer fails to do so, there is a risk that the deficiency litigation will be invalid.

Tax Litigation Following the Notice of Deficiency

Tax Litigation Following the Notice of Deficiency

Receiving a statutory notice of deficiency is a turning point for the taxpayer’s tax litigation case. The IRS cannot collect tax unless the tax has been assessed, and no assessment can be made on a tax until a valid statutory notice of deficiency has been issued by the Service. Once the taxpayer receives a statutory notice of deficiency, there are three options available:

Deficiency Litigation to Determine Tax Liability

Deficiency Litigation to Determine Tax Liability

There are two principal types of tax litigation process that can be used to determine a tax liability: deficiency litigation and refund litigation. Deficiency litigation is one type of tax court litigation employed to determine a taxpayer’s tax liability. The purpose of a deficiency litigation is to give the taxpayer an opportunity to dispute the IRS’s assessment of tax liability against the taxpayer.

What is the Meaning of a Tax Deficiency?

What is the Meaning of a Tax Deficiency?

A tax deficiency is a statutorily defined concept that is essential to planning and proceeding with tax litigation. Specifically, a deficiency is defined as the amount by which the correct tax exceeds the excess of:

Jurisdiction of the Tax Court in a Refund Litigation

Jurisdiction of the Tax Court in a Refund Litigation

When you receive a statutory notice of deficiency from the IRS, you can file for a deficiency tax litigation or a refund tax litigation proceeding. Typically, refund jurisdiction is limited to the district courts and Court of Federal Claims. However, the Tax Court generally has jurisdiction over deficiency litigations. In some circumstances, the Tax Court may also have jurisdiction over refund litigation as well.

General Jurisdiction of the Tax Court

General Jurisdiction of the Tax Court

The Tax Court is the most typical forum for the resolution of tax litigation controversies. The Tax Court is an Article I court with limited jurisdiction as expressly conferred by Congress.

How to Recognize the Signs of Identity Theft

How to Recognize the Signs of Identity Theft

Identity theft is a serious crime and of increased concern in recent years. Identity theft occurs when someone uses another person’s personal information, such as name or Social Security Number (SSN), without permission, to commit fraud or other crimes. There are several different types of identity fraud and the taxpayer’s response to each should be tailored to address the unique circumstances involved.

Identity Theft – the Tax Representative’s Perspective

Identity Theft – the Tax Representative’s Perspective

Tax attorneys may be called upon to help clients if they are victims of identity theft such as refund theft. Identity theft is a relatively new crime, but it is widespread and potentially very damaging to taxpayers. The IRS has responded to the threat by establishing several departments and pathways for tax representatives and their clients to file identity theft claims to seek relief.

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