Tax Tribunals Created In More States

More States Courting Taxes

Anyone who’s been to U.S. Tax Court knows how much of a hassle – or blessing – it can be. It can also be another reason to hire a lawyer, or a line of defense against overzealous IRS judgments or agents.

Nowadays these niche tribunals are making their way to more and more states. Twenty-seven states have tax courts, but whether they’re staffed by tax experts varies. Six states created theirs or considered creating theirs over the past two years, and four have been created since 2003.

Tax courts are preferred by the business community and some individuals due to the opportunity to receive a fair shake. But where some see an advantage, others see an extra burden benefiting tax attorneys more than anyone else.

State tax courts typically allow taxpayers to appeal tax assessments, but unlike U.S. Tax Court they often make their hearings, judgments, and records public. They can even make taxpayers’ returns public, too.

But state politicians have created them as an answer for people who are alleged to owe back taxes. And with more state tax courts popping up, there’s more ways to resolve back tax debt.

Getting in legal disputes with the IRS in U.S. Tax Court isn’t only a hassle, it can be expensive. But working with a tax attorney or tax professional beforehand can help you resolve a shaky financial situation and avoid state and federal tax court.

That’s a better way to spend a day than in court.

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