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The timeframe for tax court decisions

On Behalf of | Jan 17, 2023 | Tax Court Litigation

The IRS could audit someone and levy the person with an assessment of additional taxes. Sometimes, the IRS may question a deduction or find something else wrong with the tax return, resulting in added taxes and penalties. However, that does not mean the taxpayer has no options. Filing an appeal could lead to a reversal in a Georgia taxpayer’s favor. If not, going to tax court becomes another option although it could take some time for a ruling.

Tax court timeframes

The proceedings in court must conclude before the judge renders a decision. Filing briefs and arguing in court typically take place before the conclusion. Although the taxpayer may prefer things to complete without delays, the judge is not locked into any specific time frame to make a decision.

Once all parties have presented evidence and argued their case, the judge reviews everything before deciding. However, the judge may issue a bench opinion during the trial session. Besides a bench opinion, the judge may issue a tax court or summary opinion.

Further steps

Those who disagree with the judge’s decision may file an appeal after the initial tax court litigation. Specifically, they must file an appeal in the Federal Circuit Court of Appeals. Be aware there are no appeals for summary opinions.

The appeal process would add more time to the waiting period for a decision. There are no guarantees that the appeal will result in the decision the taxpayer prefers. However, if the taxpayer does not file an appeal, then the original decision stands.

Many times, tax court cases end with an agreement for a settlement, which might be preferable if you’re looking for a quick outcome. Paying a percentage of the tax debt owed could be less costly and time-consuming than continuing to litigate.