New Law May Help Taxpayers Address Refunds in Tax Court

 Posted on March 27, 2025 in Tax Appeals

Resolving tax law issues with the IRS can be a complicated process. In some cases, these matters may be handled in the U.S. Tax Court, while in others, taxpayers must pursue claims in U.S. district courts. Determining the available options is not always easy, and some taxpayers may simply give up rather than try to contest tax issues or recover refunds that they are owed. However, new legislation may provide more options for taxpayers, ensuring that they will be able to address certain tax issues more easily and efficiently.

Determining how to resolve tax-related concerns can be a complex process, and the assistance of a skilled San Jose, CA tax attorney can be invaluable in these situations. Whether an issue can be resolved in Tax Court, by negotiating agreements with the IRS, or through other means, a lawyer who has a strong understanding of tax law can provide the guidance needed to protect a taxpayer’s interests.

Possible Expansions of Tax Court Jurisdiction Under the TAS Act

A proposed new law known as the Taxpayer Assistance and Service (TAS) Act would make several adjustments to tax policies. One notable provision addresses refund suits in which taxpayers seek refunds of taxes they have paid. The purpose of this change to the law would be to make it easier for taxpayers to challenge the IRS’s decisions and receive refunds they are owed.

Currently, taxpayers can only file refund suits in the U.S. Tax Court if the IRS has determined that they owe additional taxes. After the IRS issues a deficiency notice, a taxpayer can file a suit to challenge this deficiency and seek a refund. In other situations, including when a taxpayer has already paid taxes and has learned that they are owed a refund due to overpayment, refund suits must be filed in a U.S. district court or the U.S. Court of Federal Claims.

Under the TAS Act, taxpayers would be allowed to file refund suits in the U.S. Tax Court. The Tax Court may be the preferred option when addressing these types of issues since it follows simplified procedures that may allow for informal resolutions rather than prolonged litigation. The filing fees are lower in Tax Court than in district courts, and low-income and small-business taxpayers can often resolve tax issues more quickly and efficiently.

While these proposed changes would benefit many taxpayers, they will not go into effect until the TAS Act is passed by Congress. Under the current laws, taxpayers may need to take other steps to pursue refunds and address other related tax issues. Because of the complex procedures followed in federal courts, representation by an experienced attorney is essential. A lawyer who understands the steps that will need to be taken to claim refunds that are owed can provide the legal help necessary to resolve these issues successfully.

Contact Our San Jose, CA Tax Lawyer

At John D. Teter Law Offices, we understand that tax issues can be complex, and we are dedicated to helping our clients minimize their tax burdens. Our San Jose, CA tax law attorney can provide guidance for small businesses, individual taxpayers, and others who want to claim refunds, need to respond to tax audits, or are looking for ways to avoid penalties. To schedule a consultation and begin taking steps to resolve tax-related concerns, contact our office at 408-866-1810.