Tax litigation in Richmond can run from trial to appeal without leaving the city. The U.S. Tax Court comes here for trial sessions, and the Eastern District of Virginia hears refund suits in its Richmond Division. Appeals from either court generally go to the Fourth Circuit, which also sits in Richmond. Whiteford Tax Defense prepares every case for trial from the first day, so the evidence decides it, not guesswork.
In recent years, the IRS has looked harder at corporate returns and focused more on coordinated enforcement. That shift has brought more disputes, and more court cases, to Richmond residents and businesses. Tax litigation is a court case over a tax dispute, and it can be civil or criminal. Federal tax cases are heard in the U.S. Tax Court, a U.S. District Court, or the U.S. Court of Federal Claims. Our tax appeals and litigation team works in all three.
The Tax Court's Richmond sessions
Richmond and Roanoke are Virginia's two places of trial, where the U.S. Tax Court holds trial sessions. Neither has a permanent Tax Court courtroom, so the notice setting your trial gives the address. The court can hear both regular cases and small tax cases in Richmond. Small tax cases, an option in some disputes of $50,000 or less, use a simpler procedure, but the decision cannot be appealed.
Under 26 U.S.C. section 7442, the Tax Court hears civil tax cases, including deficiencies and the penalties tied to them. A deficiency is extra tax the IRS proposes, and you can contest it there before paying. A notice of deficiency gives you 90 days from its date to file a petition. That deadline cannot be extended. The court also reviews the result of a Collection Due Process hearing after a lien or levy notice, and it decides innocent spouse claims on joint returns.
In practice, many cases settle before trial. Once you file, IRS lawyers generally send a new deficiency case to the Independent Office of Appeals to try to settle it. They skip that step if Appeals issued the notice or you opt out. A settlement becomes a stipulated decision, which both sides sign and the court enters. At trial, a judge decides the case without a jury, and IRS lawyers argue the government's side.
Refund suits in the Eastern District's Richmond Division
A refund suit works the other way around: you pay the tax first, then sue to get it back. You can sue only after you file a refund claim and the IRS denies it or lets six months pass. In a federal district court, the suit is filed where you live. For a Richmond resident, that means the Eastern District of Virginia. Its Richmond Division covers the city and counties such as Henrico, Chesterfield, and Hanover.
Unlike the Tax Court, the district court lets either side ask for a jury. Justice Department lawyers, not IRS lawyers, represent the United States there. The Eastern District is known as the Rocket Docket for its speed, which leaves little room for error in filings or evidence. Our Richmond office prepares refund suits and Tax Court petitions with that pace in mind from the first IRS letter.
Appeals to the Fourth Circuit in Richmond
Appeals from the Eastern District go to the Fourth Circuit, the federal appeals court that holds regular sessions in Richmond. Tax Court appeals generally go there too if you lived in Virginia when you filed your petition, or if your business was based here. Because the Fourth Circuit would hear the appeal, the Tax Court follows its precedent in your case. Lawyers call this the Golsen rule. So Fourth Circuit decisions shape a Richmond case from the start, not only on appeal.
A refund suit in the Court of Federal Claims is the exception. Its appeals go to the Federal Circuit instead, so the choice of refund court can change which precedent applies.
Third-party summonses in the Eastern District of Virginia
An IRS summons can reach past you to the people who hold your records, such as your bank, your accountant, or a business partner. In most cases, the IRS must notify you within three days of serving that third party. You then have 20 days to file a petition to quash, which asks the court to cancel the summons. You file it in the district where the recipient resides or is found. For a Richmond-area bank, that is the Eastern District of Virginia.
The government can ask the same court to order the recipient to comply. The Justice Department brings these summons enforcement cases for the IRS, in the name of the United States. To get an order, the government must show that:
- the summons has a legitimate purpose
- the records may be relevant to that purpose
- the IRS does not already have them
- the IRS followed the required administrative steps
Privileged communications are generally protected from a summons.
Common matters we handle
- Tax Court petitions after a 90-day notice of deficiency, including cases set for trial in Richmond
- Refund suits in the Eastern District of Virginia under 26 U.S.C. section 7422
- Contesting or negotiating IRS summonses, including those served on Richmond-area banks and accountants, and defending summons enforcement cases
- Collection Due Process hearings under IRC sections 6330 and 6320 after a lien or levy notice
- Innocent spouse claims on joint federal returns, including Tax Court review under IRC section 6015
- Civil disputes over underreported income, disallowed deductions, and employment taxes
- Criminal tax exposure involving alleged evasion, false returns, or fraud
A note on admissions Federal tax matters are handled nationwide, including IRS examinations, appeals, collection, and Tax Court litigation. Virginia state and local tax matters are handled together with Whiteford attorneys admitted in Virginia, or with co-counsel where a matter requires it.
Why taxpayers choose Whiteford
- Local to Richmond and familiar with the Eastern District of Virginia and its Rocket Docket
- Every matter prepared for trial, which strengthens our hand in settlement and keeps the case ready for court
- Focused on tax controversy, from the first IRS notice through the Tax Court and federal district court