Question

In: Accounting

Name three advantages of taking a tax dispute with the IRS to the U.S. Tax Court...

Name three advantages of taking a tax dispute with the IRS to the U.S. Tax Court instead of another federal court.

Solutions

Expert Solution

The three advantages of taking a tax dispute with the IRS to the U.S. Tax Court instead of another federal court:

  1. Early Settlement of cases - It is assumed that the tax payers who opts for the Tax court routes are more intrested in settlement of their cases and reducing or elimination of their tax dues within legal limitations, thus the cases in tax courts are settled even before going for a hearing. This enables quick settlements to taxpayers.
  2. No requirement of hiring a Lawyer - The US Tax court does not require a lawyer to present the case in front of court, even the appeals procedures are waived off in certain cases which makes the taxpayers an easy and money saving option to opt for.
  3. No requirement to pay tax assessed before going to a court - Unlike Federal courts, while applying to the tax court the tax payer is not required to pay the tax dues for admitting the case in the courts. This helps the tax payers plan their assessment payments.

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