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Texas Tax Attorney Handling High-Stakes Cases in U.S Tax Court

A taxpayer that has entered litigation may feel that all remedies have been exhausted. However, that is far from true. During litigation, the government must show proof that the taxpayer owes the proposed amount, a standard that Brown, PC is will aggressively refute. Our partner Lawrence Brown was a former Department of Justice Tax Division trial attorney who prosecuted dozens of cases. He has first-hand insights into the tactics and processes of government lawyers, which are invaluable in his representation of disputing taxpayers. Mr. Brown enjoys a stellar reputation amongst government attorneys, tax professionals, and his former clients for his leadership, experience, and history of successes in high-stakes claims.

Brown, P.C. handles high-stakes, complex cases for high-net-worth clients who are well-known in the entertainment, sports, and business worlds, including some of the most recognized corporate names. We understand the need for managing reputations and brand image while we pursue the best possible solutions to a tax dispute. Our unique strategic communications division provides expert PR advice and works in collaboration with our litigation team to minimize potential damages to reputation and brand. We also offer 25 years of experience and a policy for maintaining a small caseload so that we can give every client the fullest attention.

After conducting a comprehensive analysis of the facts, we may recommend our client file a lawsuit in the U.S. Tax Court to contest the amount the IRS claims is due. The U.S. Tax Court offers a number of benefits to taxpayers, including a streamlined process, limited discovery, and knowledgeable judges who often spent their careers as tax attorneys before earning a seat on the bench. In addition, taxpayers have the option of withholding payment until the matter is fully resolved, a rule that can offer tremendous relief during a high-stress situation.

Selecting a Forum in a Civil Tax Litigation Case

Tax litigation cases can often be brought in four different courts, each with its own rules, procedures, benefits, and disadvantages. Selecting the right forum is a crucial aspect of a tax dispute that can drastically change the outcome. Our lawyers make this strategic initial decision based on our years of daily exposure and sophisticated dealings with the courts that hear tax disputes. After carefully weighing the pros and cons of each court, we are uniquely equipped to choose the best forum in each particular case. Cases that may be appropriate for U.S. Tax Court include those in which:

  • The liability amount is in dispute. The client is unable or reluctant to pay the amount the IRS proposes at the start of litigation, or other factors render this amount unreasonable. 
  • Minimal discovery is an advantage. Significant discovery is unnecessary or shifts the advantage to the government. The limited U.S. Tax Court discovery does not include requests for admissions, interrogatories, and depositions.
  • Technical issues are involved. A well-schooled tax court judge is better equipped to decide technical tax issues than jurors who often have limited knowledge about sophisticated financial and tax matters.
  • Expediency is desirable. Compared to the other potential forums, the U.S. Tax Court typically resolves cases more expeditiously and economically.
  • The client desires confidentiality. Litigation is filed with the U.S. Tax Court in Washington, DC, instead of in the federal clerk’s court office in the client’s home city, as occurs in a U.S. District Court claim. The case is likely to receive less damaging local publicity and scrutiny, which may be important to our high-profile clients.

Types of Tax Cases Heard by the U.S. Tax Court

The authority of the U.S. Tax Court arises under the U.S. Constitution Article III and congressional action. The judges are appointed by the President upon congressional confirmation, assisted by special trial judges who are appointed by the chief Tax Court judge. These judges hear only tax-related cases and generally have an extensive background in tax law. The court’s jurisdiction includes disputes over:

  • Notices of deficiencies
  • Notices of transferee liability
  • Some types of declaratory judgments
  • Partnership adjustments
  • Administrative costs
  • Failure to abate interests
  • Worker classifications
  • Collection actions review
  • Joint tax returns joint and several liability relief

Filing a Claim in U.S. Tax Court

Most tax disputes originate when the IRS examines the taxpayer’s return and formally issues a notice of deficiency. The taxpayer should file a timely petition for redetermination of the deficiency at this crucial stage. Otherwise, the IRS may assess taxes in the amount the agency unilaterally decided. Once this assessment is recorded, any subsequently issued statutory liens become effective upon the date of recording and encumber the taxpayer’s property. For this reason, Brown, P.C. urges taxpayers to act quickly to protect their rights and preserve their options for relief.

Once we file a timely petition in U.S. Tax Court, the taxpayer’s duty to pay tax liability is delayed until the conclusion of litigation. However, after we carefully review the claim and accurately calculate the actual amount the taxpayer likely owes, we may recommend our client make a deposit with the IRS to mitigate accrued interest.

In U.S. Tax Court the trial is calendared according to first filed, first scheduled. Our attorneys are often able to resolve our client’s disputes with the IRS for a fair adjustment under equitable terms. However, we file a petition with the intention of taking our client’s case to trial if that is the course of action that will lead to the best results.

Discuss the Advantages of Litigation in the U.S. Tax Court with a Texas Tax Attorney

Choosing the correct forum is an important aspect of successful civil tax litigation. The Texas tax dispute attorneys at Brown, PC will recommend bringing a case in the U.S. Tax Court if appropriate in your case.

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