If a dispute is not resolved at the audit or objection stage, the matter will appear before the Tax Court. There are two (2) types of procedures within the Tax Court. The first is designed for matters where there are less tax and dispute and the second is a more formal procedure where greater amounts are an issue. Corporations in the more formal approach are required to be represented by a member of the Bar unless the Court grants special permission.
Whether a matter is in the informal or general procedure, the Tax Court proceeds by certain rules of Court. In order to successfully resolve a matter, it is important to have a thorough technical knowledge of the rules available. Often, tax disputes which have not been able to be resolved through any of the other dispute resolution mechanisms can be resolved with a thorough understanding of the technical rules.
Drache Aptowitzer LLP lawyers have appeared before the Tax Court many times and indeed have settled more cases in which they have appeared. Settlements are a matter of a relative assessment between the lawyers on each side of the merits of proceeding to Court. It is necessary that experienced counsel review your case and provide you with advice as to whether or your matter should go to Court and whether there exists a possibility of settlement.
Cases which go to Court unnecessarily are liable to have costs owing, which if you lose your case, means that not only do you owe the tax, interest, and penalties but the costs of proceeding to Court as well. We would recommend that all individuals with a tax dispute heading to Tax Court retain experienced counsel for advice.
Drache Aptowitzer LLP lawyers would be happy to help you in this regard.