HowToSue.org

Everybody would love to sue the IRS and get some of their hard-earned tax money back–but more people talk about it than actually do it. Is it possible? Yes. But suing the IRS is a whole different “animal” than suing someone else. Before proceeding, you need to understand the differences between suing the IRS and suing a corporation, a private individual, or even suing a city government.

First of all, there is a special, separate court system for IRS lawsuits. While it is possible to sue in Federal District Court in some cases, most cases are heard by the U. S. Tax Court. And even if you feel that you have been hit with unfair liabilities, you must usually first pay them, regardless of merit, and then sue for a refund.

Second, you’re going to have to understand the legal basis for your lawsuit, which may need to be different than it would be if you were suing someone else. And there may be special procedures to follow as well. Usually, before you file a lawsuit against the IRS, you must first go through the agency’s internal channels and seek “administrative remedies.” Only if these are fruitless can you proceed to a lawsuit.

So if you’re going to sue the IRS, you’re going to have to do your homework. As with any other lawsuit, gather all your evidence. Then consult an experienced tax attorney, who will be able to advise you on how to proceed.

By the way, one thing you should not do is file a “frivolous” lawsuit against the IRS. There are many Web sites out there that suggest that the IRS’s procedures are illegal or unconstitutional; that income tax regulations do not have the same legal status as “real” laws; that IRS judgments are unenforceable due to some purported defect in the law, and so on. These sites encourage you either (1) to not pay your taxes, and then use their novel “theories” to defend yourself when the IRS comes after you, or (2) to sue the IRS using these theories. Be advised that you not only will lose if you actually file suit based on a phony legal theory; you probably also will be slapped, at the very least, with a penalty for filing a frivolous suit. This may seem unfair, and perhaps it is. But the other side of the story is that these laws save taxpayer money that would otherwise be expended in defending against pro se lawsuits filed by people with time on their hands who want to test out half-baked legal theories.

So regardless of how you feel about the IRS and income taxation, don’t attempt to vent your frustration using quack legal theories. If you feel you have genuinely been wronged by the IRS, then collect all the evidence and talk to a tax attorney. If you’re in the right, you do have a chance in court despite the special rules that tend to stack the deck in favor of the IRS and against the taxpayer. But be prompt: there are strict statutes of limitations involved too.