Tax Litigation Deadlines: The 90 Day Rule for Challenging IRS Deficiency Notices

Most taxpayers never expect to see the words "Notice of Deficiency." When they do, it usually arrives without drama, just another envelope, another form, another deadline buried in fine print. But that single notice represents a turning point.

A Notice of Deficiency is the IRS formally stating that it believes you owe additional tax, penalties, or interest. More importantly, it is the document that opens the door to the United States Tax Court. At that moment, your tax problem is no longer administrative. It is legal.

This is the stage where silence, delay, or casual responses carry real consequences.

What the United States Tax Court Actually Is

The United States Tax Court is a federal court that exists for one reason: to resolve disputes between taxpayers and the Internal Revenue Service before the tax is paid. It is the primary forum where IRS determinations can be challenged without first writing a check.

Despite what many assume, the Tax Court is not part of the IRS. It is an independent judicial body with its own judges, rules, and procedures. But make no mistake, the courtroom is governed by law, deadlines, and evidence, not explanations or hardship narratives.

Once a case reaches this level, the IRS is no longer negotiating as an examiner or appeals officer. It is litigating.

The Notice of Deficiency: The Clock Starts Running

A Notice of Deficiency is sometimes referred to as a "90 day letter," and that description is precise. From the date the notice is issued, you generally have 90 days to file a petition with the United States Tax Court. Miss that deadline, and the IRS is free to assess and collect the tax without further court review.

There are no extensions. There are no informal appeals after the deadline expires. The notice is not a threat, it is a procedural trigger.

Many taxpayers make the mistake of treating the notice as something to respond to later, or something their accountant or tax preparer can "handle." By the time that assumption is proven wrong, the window has often closed.

How a Tax Court Case Actually Works

A Tax Court case begins when a petition is timely filed. That filing preserves your right to challenge the IRS' determination. Without it, the IRS' position becomes final by default.

After the petition is filed, the case enters a structured litigation process. The IRS files an answer. Discovery may occur. Motions may be filed. Settlement discussions often take place, but they are framed by litigation risk, not goodwill.

This is where many misunderstand the process. Most Tax Court cases do not go to trial, but they are resolved because trial is possible. The leverage comes from preparation, legal position, and procedural discipline.

The IRS evaluates cases based on hazards of litigation. If you cannot demonstrate risk to the government's position, there is little incentive for meaningful resolution.

Why Tax Court Is Not "Just Another Appeal"

Tax Court is fundamentally different from audits and administrative appeals. At the audit stage, the IRS is developing its case. At Appeals, it is weighing settlement internally. In Tax Court, the dispute is governed by rules of evidence and procedure.

Statements made earlier in the process matter. Documents submitted, or not submitted, matter. Burdens of proof matter. Deadlines matter.

Once litigation begins, the IRS' posture hardens. Casual cooperation gives way to formal positions. This is why Tax Court strategy begins long before a trial date is ever set.

The Cost of Waiting

The most damaging Tax Court cases are not necessarily the largest ones. They are the cases where nothing was done until the Notice of Deficiency arrived, or worse, until the deadline passed.

Every step before Tax Court shapes the outcome inside it. Waiting compresses options. It shifts leverage. It limits strategy.

The IRS does not need your agreement to proceed. It only needs the clock to run.

Who Tax Court Representation Is For

Tax Court representation is not designed for cost-driven or passive engagement. It requires timely action, complete information, and an understanding that litigation is strategic, not reactive.

Those who approach Tax Court casually often discover that the process moves faster and with less forgiveness than expected. Those who approach it deliberately preserve options and leverage.

United States Tax Court Representation in Bakersfield

Based in Bakersfield, California, the Law Office of Jorge Alesna, Jr. represents individuals and businesses throughout Kern County and California in matters before the United States Tax Court. Local representation matters when federal tax disputes intersect with California income, business, and enforcement realities.

Whether the issue arises from an IRS audit, Appeals determination, or Notice of Deficiency, early intervention can preserve rights and prevent escalation.

Consultation & Case Evaluation

United States Tax Court matters are governed by strict jurisdictional deadlines and procedural rules. This practice is structured for deliberate, strategic representation, not last-minute damage control.

Consultations are substantive and focused on evaluating the Notice of Deficiency, procedural posture, and litigation risk. If you are prepared to address the matter seriously, a consultation is an appropriate next step. If not, it is better to know that upfront.

If you have received a Notice of Deficiency or believe one is imminent, time is the controlling factor. Addressing the matter early preserves leverage. Waiting rarely does.