Tax Defense ✦ Litigation
When the IRS Won’t Move, the Tax Court Will Decide.
A notice of deficiency is the IRS’s final word and your first real leverage: 90 days to petition the U.S. Tax Court, no payment required, and a judge who applies the law rather than the manual. North Star Law Firm’s attorney is admitted to the Tax Court and litigates Colorado cases at the Denver trial sessions, settling most before trial and trying the ones that should be tried.
Overview
The petition, the settlement, and the trial
The Tax Court’s jurisdiction is triggered by a notice of deficiency, a CDP determination, an innocent spouse denial, or a handful of other IRS actions, each with its own deadline. A timely petition stops assessment and collection of the disputed tax and moves the case out of the examination pipeline and into a court. What follows is a settlement process with IRS Counsel and Appeals that resolves most cases, and, when it doesn’t, a trial in Denver decided by a Tax Court judge. Decisions are appealable to the Tenth Circuit. Our attorney is admitted to the Tax Court, and because he is also a CPA, the accounting evidence in a tax trial is prepared and presented by the same person arguing the law.
- Petitions filed on the 90-day deficiency deadline
- CDP, innocent spouse, and worker-classification petitions
- Small tax case election when it serves you
- Settlement with IRS Counsel and docketed Appeals
- Stipulations, exhibits, and expert accounting evidence prepared in-house
- Trial at the Denver session when settlement fails
- Refund suits in the District of Colorado where the deadline was missed
- Tenth Circuit appeals evaluated candidly
Which Court
Where a Colorado tax dispute can be heard
| Forum | Pay first? | Jury? | Typical use |
|---|---|---|---|
| U.S. Tax Court (Denver trial sessions) | No | No | Deficiency cases, CDP review, innocent spouse, most tax litigation |
| U.S. District Court for the District of Colorado | Yes | Available | Refund suits after the 90 days have passed; wrongful levy; lien priority |
| U.S. Court of Federal Claims | Yes | No | Refund suits, especially larger or specialized claims |
| Colorado district court | Depends | No | De novo appeal of a Department of Revenue final determination under C.R.S. § 39-21-105 |
The Attorney-CPA Difference
Tax trials are decided on the accounting record.
Substantiation cases, unreported income cases, and valuation cases turn on financial evidence: reconstructed ledgers, bank deposit analyses, and expert reports. In most firms the lawyer retains an accountant for that work. Here the lawyer is the accountant, which means the exhibits are built by the person who has to defend them on cross-examination and the settlement is modeled by someone who can price the case. That combination also makes the small case and settlement track efficient enough to be worth it on modest balances.
- Admitted to practice before the U.S. Tax Court
- Accounting exhibits and schedules prepared by the trial attorney
- Settlement modeled on hazards before the first Counsel conference
- Phased flat fees for petition, pretrial, and trial
- Tenth Circuit precedent applied from the start
Questions & Answers
Tax Court Litigation questions, answered
Where does the Tax Court hear Colorado cases?
In Denver. The U.S. Tax Court is a national court based in Washington, but its judges travel, and Denver is a regular trial city. Small tax cases (under $50,000 per year) are also heard in Denver under simplified procedures. Most cases settle with IRS counsel or Appeals before the trial session, so many clients never appear.
Do I have to pay the tax first?
No. That is the reason the Tax Court exists. A timely petition within 90 days of the notice of deficiency lets you contest the tax before assessment and payment. Missing the 90 days means paying the tax and suing for a refund in the U.S. District Court for the District of Colorado or the Court of Federal Claims instead.
Who represents the IRS, and what happens after I file?
IRS Office of Chief Counsel attorneys, and in most cases the file goes first to the Independent Office of Appeals for a settlement attempt. If no settlement is reached, the case is set for a trial session in Denver with a standing pretrial order requiring stipulations and exhibit exchange. Trials are before a judge, without a jury.
Can I appeal a Tax Court decision?
To the U.S. Court of Appeals for the Tenth Circuit, which is also in Denver. The Tenth Circuit’s decisions on tax matters, including the late-filed-return rule in Mallo, govern Colorado taxpayers in both the Tax Court and the bankruptcy court.
Is Tax Court expensive?
Less than people expect. The filing fee is $60, most cases settle before trial, and we quote litigation in phases (petition and Appeals, pretrial, trial) so the cost of each step is known before you commit to it. Small tax case procedures cut the cost further for balances under $50,000.
Talk to an attorney-CPA before you talk to the IRS.
A free consultation, a plain-English assessment, and a flat fee in writing if you decide to move forward.