United States Tax Court
Rules
TITLE XVII
SMALL TAX CASES
Rule 170. General
The Rules of this Title XVII, referred to herein as the
"Small Tax Case Rules," set forth the special provisions which
are to be applied to small tax cases as defined in Rule 171. See
Code Section 7463 (Appendix II). Except as otherwise provided in
these Small Tax Case Rules, the other rules of practice of the
Court are applicable to such cases.
Rule 171. Small Tax Case Defined.
The term "small tax case" means a case in which:
(a) Neither the amount of the deficiency, nor the amount of
any claimed overpayment, placed in dispute (including any
additions to tax, additional amounts, and penalties) exceeds--
(1) $ 10,000 for any one taxable year in the case of income
taxes,
(2) $ 10,000 in the case of estate taxes,
(3) $ 10,000 for any one calendar year in the case of gift
taxes, or
(4) $ 10,000 for any one taxable period or, if there is no
taxable period, for any taxable event in the case of excise taxes
under Code Chapter 41, 42, 43, or 44 (taxes on certain
organizations and persons dealing with them) or under Code
Chapter 45 (windfall profit tax);
(b) The petitioner has made a request in accordance with Rule
172 to have the proceedings conducted under Code Section 7463;
and
(c) The Court has not entered an order in accordance with Rule
172(d) or Rule 173, discontinuing the proceedings in the case
under Code Section 7463.
Rule 172. Election of Small Tax Case Procedure
With respect to classification of a case as a small tax case
under Code Section 7463, the following shall apply:
(a) A petitioner who wishes to have the proceeding in the case
conducted under Code Section 7463 may so request at the time the
petition is filed. See Rule 175.
(b) A petitioner may, at any time after the petition is filed
and before trial, request that the proceedings be conducted under
Code Section 7463.
(c) If such request is made in accordance with the provisions
of this Rule 172, then the case will be docketed as a small tax
case. The Court, on its own motion or on the motion of a party to
the case, may, at any time before the trial commences, enter an
order directing that the small tax case designation shall be
removed and that the proceedings shall not be conducted under the
Small Tax Case Rules. If no such order is entered, then the
petitioner will be considered to have exercised the petitioner's
option and the Court shall be deemed to have concurred therein,
in accordance with Code Section 7463, at the commencement of the
trial.
Rule 173. Discontinuance of Proceedings
After the commencement of a trial of a small tax case, but
before the decision in the case becomes final, the Court may
order that the proceedings be discontinued under Code Section
7463, and that the case be tried under the Rules of Practice
other than the Small Tax Case Rules, but such order will be
issued only if (1) there are reasonable grounds for believing
that the amount of the deficiency, or the claimed overpayment, in
dispute will exceed $ 10,000 and (2) the Court finds that justice
requires the discontinuance of the proceedings under Code Section
7463, taking into consideration the convenience and expenses for
both parties that would result from the order.
Rule 174. Representation
A petitioner in a small tax case may appear without
representation or may be represented by any person admitted to
practice before the Court. As to representation, see Rule 24.
Rule 175. Pleadings
(a) Petition.
(1) Form and content. The petition in a small tax case shall
be substantially in accordance with Form 2 shown in Appendix I,
or shall, in the alternative, comply with the requirements of
Rule 34(b), and contain additionally (A) the location of the
office of the Internal Revenue Service which issued the
deficiency notice, (B) the taxpayer identification number (e.g.,
social security number) of each petitioner, and (C) a request
that the proceedings be conducted under Code Section 7463.
(2) Filing fee. The fee for filing a petition shall be $ 60,
payable at the time of filing. The payment of any fee under this
paragraph may be waived if the petitioner establishes to the
satisfaction of the Court by an affidavit containing specific
financial information the inability to make such payment.
(3) Verification not required. The petition need not be
verified, unless the Court directs otherwise.
(b) Answer. No answer is required to be filed in a small tax
case, except where there is an issue on which the Commissioner
bears the burden of proof or where the Court otherwise directs.
Where an answer is filed, the provisions of Rule 36 shall apply.
In a case where no answer is filed, the allegations of error and
facts relating thereto set forth in the petition shall be deemed
denied.
(c) Reply. A reply to the answer shall not be filed unless the
Court, on its own motion or upon motion of the Commissioner,
shall otherwise direct. Any reply shall conform to the
requirements of Rule 37(b). In the absence of a requirement of a
reply, the provisions of the second sentence of Rule 37(c) shall
not apply and the affirmative allegations of the answer will be
deemed denied.
Rule 176. Preliminary Hearings
If, in a small tax case, it becomes necessary to hold a
hearing on a motion or other preliminary matter, the parties may
submit their views in writing and may, but shall not ordinarily
be required to, appear personally at such hearing. However, if
the Court deems it advisable for the petitioner or the
petitioner's counsel to appear personally, the Court will so
notify the petitioner or the petitioner's counsel and will make
every effort to schedule such a hearing at a place convenient to
them.
Rule 177. Trial
(a) Place of trial. At the time of filing the petition, the
petitioner may, in accordance with Form 4 in Appendix I or by
other separate writing, designate the place where the petitioner
would prefer the trial to be held. If the petitioner has not
filed such a designation, then the Commissioner shall, within 30
days after the date of service of the petition, file a
designation showing the place of trial preferred by the
Commissioner. The Court will make every effort to conduct the
trial at the location most convenient to that designated where
suitable facilities are available.
(b) Conduct of trial and evidence. Trials of small tax cases
will be conducted as informally as possible consistent with
orderly procedure, and any evidence deemed by the Court to have
probative value shall be admissible.
(c) Briefs. Neither briefs nor oral arguments will be required
in small tax cases, but the Court on its own motion or upon
request of either party may permit the filing of briefs or
memorandum briefs.
Rule 178. Transcripts of Proceedings
The hearing in, or trial of, a small tax case shall be
stenographically reported or otherwise reported but a transcript
thereof need not be made unless the Court otherwise directs.
Rule 179. Number of Copies of Papers
Only an original and two conformed copies of any paper need
be filed in a small tax case. An additional copy shall be filed
for each additional docketed case which has been, or is requested
to be, consolidated.
