Have a Tax Issue With the IRS? You Could Always Take Them to Court

What would you do if the IRS makes a decision you don’t agree with? For example, let’s say you file a tax return and send it in expecting to receive a refund of $1,500. However, a few weeks later, instead of receiving your refund, you get a letter in the mail informing you that you made a mistake and you will only be receiving $1,100. You’d be upset for sure, but most people probably figure there’s nothing they can do about it.
Actually, that’s not the case. Did you know that if you disagree with the IRS on your return you could ask them to change their decision? That sounds like a futile move, right? Why would they change their mind? There is another option, though. If you really feel that you have been treated unjustly you can take the IRS to the United States tax Court. That doesn’t sound very fun, either, but it is an option.
The good news is that the U.S. Tax Court is not affiliated with the IRS. That means the IRS is in the same boat as you if your case goes to trial. There are several reasons that people decide to challenge the IRS in court, which include:
- The IRS assess a deficiency
- An abatement request
- Request relief from a joint return
- Disagreements on worker classification
- Summons enforcement
- Gross income
- Accuracy-related penalty
While most people would rather not spend any more time dealing with the IRS than they have to, if you do feel you have been treated unfairly by the tax agency, then you don’t have to just sit back and take it.
“Madoff” or “Ponzi-Type” Tax Losses
“Madoff” or “Ponzi-Type” Tax Losses Update: 12/9/09 Wall Street Journal Article: http://online.wsj.com/article/SB124623441944466541.html In addition to other good information about the type and amount of refunds people are obtaining it says in the last paragraph: “On Monday, Sen. Charles Schumer (D., N.Y.) proposed a bill that seeks to further expand the carry-back period up to six…
Military Family Tax Relief Act of 2003
Military Family Tax Relief Act of 2003 On Nov. 11, 2003, President Bush signed into law the Military Family Tax Relief Act of 2003. Among its provisions are these tax breaks related to military personnel: Death benefits The death gratuity paid to survivors of deceased Armed Forces members rises to $12,000 and is not taxable…
Voluntary Compliance Program for Withholding Agents
Voluntary Compliance Program for Withholding Agents In a memo dated February 25, 2005, the IRS Large & Mid-size Business Division, announced that based on recently received Chief Counsel Advice, withholding agents participating in the Section 1441 Voluntary Compliance Program (VCP) would not be subject to interest charges under certain circumstances. Section 1441 requires withholding agents…
Are Casualty and Theft Losses Tax Deductible?
Are Casualty and Theft Losses Tax Deductible? If your property is destroyed, damaged, or stolen due to casualty or theft, you may be entitled to a tax deduction. A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, and unusual. A sudden event is one that…