How it works
After an audit or an unanswered CP2000, the IRS issues a statutory notice of deficiency stating the tax it intends to assess. You have 90 days (150 if the notice is addressed outside the United States) to file a petition with the U.S. Tax Court. The deadline is jurisdictional: the court cannot extend it, and the IRS cannot waive it. If no petition is filed, the tax is assessed and collection begins.
Why it matters
This is the only point at which you can dispute a proposed tax without paying it first. After assessment, the route is paying and suing for a refund, or negotiating collection alternatives.
Example
A taxpayer receives a notice of deficiency dated March 1 for a 2022 crypto adjustment. Her petition must be filed by May 30. Filing it moves the case to IRS counsel and Appeals, where most cases settle before trial.
Related: Tax Court petition, IRS Independent Office of Appeals. Read more: Appeals or Tax Court.
