26 U.S.C. § 7463 — Disputes involving $50,000 or less

submitted 57 years ago by Pub. L. 91-172 to r/title-26-INTERNAL-REVENUE-CODE · 616 words · no verdicts yet

in plain englishAI-generated · not legal advice

Taxpayers with small disputes — generally $50,000 or less — can ask the Tax Court to use a simplified small-case process. In exchange for the simpler process, the decision can't be appealed to any other court and doesn't set a precedent for other cases.

(a) In general. If a taxpayer's Tax Court petition involves a deficiency or claimed overpayment that doesn't go over $50,000 (measured per year, or per relevant period, depending on the type of tax involved), the taxpayer can choose — with the Tax Court's agreement, before the hearing — to have the case handled under this section's simplified procedures. The Tax Court can use whatever rules of evidence and procedure it wants for these cases, instead of the normal rules. A decision, with a brief explanation, satisfies the normal reporting requirements. (b) Finality of decisions. A decision made under this simplified process can't be reviewed by any other court, and it doesn't count as a precedent for any other case. (c) Limitation of jurisdiction. In a case handled this way, the court can't decide on a deficiency or overpayment amount beyond what was actually disputed or what the parties agreed to. (d) Discontinuance of proceedings. Before a decision under this section becomes final, either the taxpayer or the Secretary can ask to stop using the simplified process. The Tax Court can grant that request if it finds there are reasonable grounds to think the real dispute is actually over $50,000, and that the excess is big enough to justify switching back to normal procedures. If it does, the case then proceeds under the regular rules. (e) Amount of deficiency in dispute. For this section, the disputed deficiency amount includes related additions to tax, extra amounts, and penalties, to the extent certain other procedures apply. (f) Additional cases eligible. With Tax Court agreement before the hearing, this simplified process can also be used for: (1) a request for innocent-spouse relief where the amount sought is $50,000 or less; (2) an appeal of a collection due process determination where the unpaid tax is $50,000 or less; and (3) a request for interest abatement where the amount sought is $50,000 or less.

the actual law source: uscode.house.gov ↗public domain

(a) In general

In the case of any petition filed with the Tax Court for a redetermination of a deficiency where neither the amount of the deficiency placed in dispute, nor the amount of any claimed overpayment, exceeds—

(1)

$50,000 for any one taxable year, in the case of the taxes imposed by subtitle A,

(2)

$50,000, in the case of the tax imposed by chapter 11,

(3)

$50,000 for any one calendar year, in the case of the tax imposed by chapter 12, or

(4)

$50,000 for any 1 taxable period (or, if there is no taxable period, taxable event) in the case of any tax imposed by subtitle D which is described in section 6212(a) (relating to a notice of deficiency),

at the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings in the case shall be conducted under this section. Notwithstanding the provisions of section 7453, such proceedings shall be conducted in accordance with such rules of evidence, practice, and procedure as the Tax Court may prescribe. A decision, together with a brief summary of the reasons therefor, in any such case shall satisfy the requirements of sections 7459(b) and 7460.

(b) Finality of decisions

A decision entered in any case in which the proceedings are conducted under this section shall not be reviewed in any other court and shall not be treated as a precedent for any other case.

In any case in which the proceedings are conducted under this section, notwithstanding the provisions of sections 6214(a) and 6512(b), no decision shall be entered redetermining the amount of a deficiency, or determining an overpayment, except with respect to amounts placed in dispute within the limits described in subsection (a) and with respect to amounts conceded by the parties.

(d) Discontinuance of proceedings

At any time before a decision entered in a case in which the proceedings are conducted under this section becomes final, the taxpayer or the Secretary may request that further proceedings under this section in such case be discontinued. The Tax Court, or the division thereof hearing such case, may, if it finds that (1) there are reasonable grounds for believing that the amount of the deficiency placed in dispute, or the amount of an overpayment, exceeds the applicable jurisdictional amount described in subsection (a), and (2) the amount of such excess is large enough to justify granting such request, discontinue further proceedings in such case under this section. Upon any such discontinuance, proceedings in such case shall be conducted in the same manner as cases to which the provisions of sections 6214(a) and 6512(b) apply.

(e) Amount of deficiency in dispute

For purposes of this section, the amount of any deficiency placed in dispute includes additions to the tax, additional amounts, and penalties imposed by chapter 68, to the extent that the procedures described in subchapter B of chapter 63 apply.

(f) Additional cases in which proceedings may be conducted under this section

At the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing of the case, proceedings may be conducted under this section (in the same manner as a case described in subsection (a)) in the case of—

(1)

a petition to the Tax Court under section 6015(e) in which the amount of relief sought does not exceed $50,000,

(2)

an appeal under section 6330(d)(1)(A) to the Tax Court of a determination in which the unpaid tax does not exceed $50,000, and

(3)

a petition to the Tax Court under section 6404(h) in which the amount of the abatement sought does not exceed $50,000.

Source credit: (Added Pub. L. 91–172, title IX, § 957(a), Dec. 30, 1969, 83 Stat. 733; amended Pub. L. 92–512, title II, § 203(b)(1), (2), Oct. 20, 1972, 86 Stat. 945; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–600, title V, § 502(a)(1), (2)(A), (b), Nov. 6, 1978, 92 Stat. 2879; Pub. L. 96–222, title I, § 105(a)(1)(A), Apr. 1, 1980, 94 Stat. 218; Pub. L. 97–362, title I, § 106(a)(1), Oct. 25, 1982, 96 Stat. 1730; Pub. L. 98–369, div. A, title IV, § 461(a)(1), (2)(A), July 18, 1984, 98 Stat. 823; Pub. L. 101–508, title XI, § 11801(c)(21)(B), Nov. 5, 1990, 104 Stat. 1388–528; Pub. L. 105–206, title III, § 3103(a), July 22, 1998, 112 Stat. 731; Pub. L. 106–554, § 1(a)(7) [title III, § 313(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–642; Pub. L. 114–113, div. Q, title IV, § 422(a), Dec. 18, 2015, 129 Stat. 3123.)

history & why it existsrecord from the source credit

1969Enacted · Pub. L. 91-172 · 83 Stat. 733
1972Amended · Pub. L. 92-512 · 86 Stat. 945
1976Amended · Pub. L. 94-455 · 90 Stat. 1834
1978Amended · Pub. L. 95-600 · 92 Stat. 2879
1980Amended · Pub. L. 96-222 · 94 Stat. 218
1982Amended · Pub. L. 97-362 · 96 Stat. 1730
1984Amended · Pub. L. 98-369 · 98 Stat. 823
1990Amended · Pub. L. 101-508 · 104 Stat. 1388
1998Amended · Pub. L. 105-206 · 112 Stat. 731
2000Amended · Pub. L. 106-554 · 114 Stat. 2763, 2763
2015Amended · Pub. L. 114-113 · 129 Stat. 3123

A history note hasn’t been published yet. The record shows enactment by Pub. L. 91-172 on 1969-12-30.

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