Tax Court Litigation

When negotiation ends — litigation begins. And we are ready.

The United States Tax Court is one of the most specialized federal courts in existence. It exists for one purpose — to resolve disputes between taxpayers and the IRS when every other avenue has failed or when the stakes are too high to accept anything less than a court-ordered resolution.

Most tax controversies are resolved before they reach this point. But when the IRS refuses to negotiate in good faith, misapplies the law, renders a decision that is factually or legally incorrect, or simply will not move — litigation becomes not just an option, but a necessity. At Blackridge Tax, we are not afraid of the courtroom. We were built for it.

What is the United States Tax Court?

The U.S. Tax Court is a federal court headquartered in Washington, D.C. with judges who travel nationally to hear cases. It is one of the primary venues where taxpayers can formally challenge IRS determinations — including audit findings, deficiency notices, penalty assessments, and collection actions — before paying the disputed amount.

This is a critical distinction. In most federal courts, a taxpayer must pay the disputed tax first and then sue for a refund. In Tax Court, you can challenge the IRS’s position before paying — preserving your cash flow and your leverage throughout the litigation process. For those with significant tax exposure, this distinction is not a technicality. It is a fundamental strategic advantage.

When Litigation Becomes Necessary

Tax Court litigation may become the appropriate — or only — path forward when:

The IRS has issued a Notice of Deficiency following an audit and you disagree with the findings
The IRS has denied your Offer in Compromise and you believe the decision was arbitrary or incorrect
The IRS has assessed penalties that are unjust, disproportionate, or improperly applied
An Appeals Office conference has failed to produce a satisfactory resolution
The amount in dispute is significant enough to warrant aggressive legal defense
The IRS has made a legal error in its determination that must be corrected through judicial review
A state tax authority has issued an assessment or determination you intend to challenge formally
The IRS has assessed civil fraud penalties that carry financial and reputational consequences

Specialized Expertise is Not Optional

Tax Court is not like other courts. The rules of procedure, the standards of evidence, the burden of proof, and the legal framework governing each case are highly specialized. The IRS enters every Tax Court proceeding with a team of experienced government attorneys whose sole focus is federal tax law. Having representation that matches — or exceeds — that level of expertise is essential.

At Blackridge Tax, our litigation team includes a Board Certified Tax Specialist and attorneys with extensive experience in federal and state tax disputes. We understand how the IRS constructs its cases, where its arguments are most vulnerable, and how to build a litigation strategy that puts our clients in the strongest possible position — from the filing of the petition through trial.

The Tax Court Process

Step 1 — The Notice of Deficiency

The 90-Day Window

Tax Court jurisdiction typically begins with a Notice of Deficiency. You have 90 days from the date of the notice to file a petition. This deadline is absolute. Missing it permanently forfeits your right to challenge the assessment in Tax Court without first paying the disputed amount.

Step 2 — Filing the Petition

The Foundation of the Case

At Blackridge Tax, we prepare and file a comprehensive Tax Court petition on your behalf — a formal legal document that sets out the facts of your case, identifies the specific errors in the IRS’s determination, and establishes the legal basis for your challenge.

Step 3 — Discovery & Development

Evidence Gathering

Once the petition is filed, both parties engage in discovery — the exchange of documents and financial records. We manage every aspect of the discovery process, identifying the evidence that supports your position while challenging the evidence the IRS intends to rely on.

Step 4 — Negotiation

Stipulation & Settlement

The majority of cases are resolved before trial through stipulated agreements. The IRS is often more willing to negotiate seriously once a petition has been filed — because litigation is expensive, time-consuming, and uncertain for both sides.

Step 5 — Trial

Strategic Representation

If your case proceeds to trial, Blackridge Tax will represent you before the Tax Court judge with precision and strategic discipline. We present your case clearly, challenge the IRS’s position methodically, and advocate for the outcome your situation demands.

Step 6 — Appeal

Further Judicial Review

If the Tax Court’s decision is unfavorable, further appeal is available to the U.S. Court of Appeals and, in appropriate cases, the United States Supreme Court. We evaluate every appellate option to determine whether further appeal is warranted based on the specific facts and legal issues involved.

Small Tax Case Procedure — The S Case

For disputes involving $50,000 or less per tax year, the Tax Court offers a simplified Small Tax Case procedure — informally known as an S Case. While S Case decisions are not appealable, they offer a faster and more accessible path to resolution for smaller disputes. At Blackridge Tax, we evaluate whether the S Case procedure is appropriate for each client’s specific situation.

State Tax Court & Tribunal Representation

In addition to federal Tax Court, Blackridge Tax represents clients before state tax tribunals, including the California Office of Tax Appeals. California’s state tax authorities (FTB, CDTFA, EDD) are among the most aggressive in the country — and state tax litigation demands the same level of expertise and preparation as federal proceedings.

The Blackridge Standard

Blackridge Tax represents clients in proceedings involving $50,000 or more in disputed liability. If you have received a Notice of Deficiency, had a resolution request denied, or believe the IRS or a state tax authority has simply gotten it wrong — we will evaluate your case honestly.

When the IRS refuses to listen — we make them hear you.

Next Steps

Take the IRS to Court.

Challenge the IRS determination before you pay a single dollar. Protect your rights.