The United States Tax Court is the federal court designated to hear many appeals of federal income and other taxes. The US Tax Court sits in Washington DC. However, the taxpayer who is appealing his or her income tax does not need to travel to Washington DC to attend court. The Tax Court, including the Tax Court Judge and administrative staff, instead travels to various locations throughout the country to hold court. In Montana, the Tax Court typically travels to our state one time a year for one week to hear cases. The Court typically convenes in May or June. The US Tax Court consists of 19 active judges, in addition to senior judges on recall and special trial judges. One judge is selected to travel to Montana. The judge stays for a week and hears all cases scheduled for the year during that week.
In Montana, the US Tax Court Judge hears small cases typically in Billings. These cases are for amounts of $50,000 or less. Often these taxpayers are not represented by legal counsel. The Montana Low Income Taxpayer Clinic attempts to confer with the taxpayers to see if the case can be resolved without litigation. The Clinic has had a representative on site in the past to try to work cases out.
Larger cases are heard at the Federal Courthouse either in Missoula or Helena, depending on the year. The week begins with a calender call where the taxpayer and legal counsel and IRS legal counsel appear before the judge, typically on the Monday of the week, to apprise the court of the status of the case and set the matter for hearing during the week. This is a time when the court can be advised of settlement or other issues.
For 2020, the US Tax Court was supposed to come to Helena and Billings during the week of May 18, 2020. However, the hearings were postponed due to the COVID-19 pandemic. All scheduled hearings were vacated. The Tax Court has not yet announced when those hearing will be rescheduled.
However, the US Tax Court has just announced that it will now be conducting its proceedings remotely.[1] The Tax Court has stated that it will hold a calender call via Zoomgov and schedule the tax trial during the upcoming week.[2] In Montana, the U.S. Bankruptcy Court has long held certain hearings and calender calls by video conference. But having the Tax Court do so will be a new experience for many practitioners and the Court. No doubt there will be bugs to work out. However, in a state like Montana where access to Tax Court hearings may be limited, videoconference hearings offer a possible way to provide timely access to the Court, especially in Montana and western intermountain states where the Tax Court only rarely travels.
Jared M. Le Fevre is a Partner in the Tax, Trusts and Estates Practice Group of Crowley Fleck PLLP. Mr. Le Fevre represents taxpayers before the IRS, IRS Independent Office of Appeals, Tax Court, Federal District Court and state tax agencies throughout Montana, Wyoming, North Dakota, Idaho, and Utah. Mr. Le Fevre is involved in federal and state and local tax audits, appeals, and tax resolution throughout these western states. Mr. Le Fevre also advises clients on the tax effects of business and real estate transactions.
[1] United States Tax Court, Press Release, May 29, 2020.
[2] United States Tax Court, Administrative Order No. 2020-02, May 29, 2020.