Small Case or Regular Case: Which Should You Choose?
If your dispute is under $50,000, you can sometimes choose simplified procedures — but you give up the right to appeal. Here's how to decide.
When you file a petition with the Tax Court, you'll face an early decision: should your case be a "small case" or a "regular case"?
If the amount in dispute is $50,000 or less, you may qualify for small case procedures. The exact rules depend on your case type.
What's the Difference?
The Tax Court offers simplified procedures for disputes of $50,000 or less (including penalties and additions to tax, but not interest). These are called "small tax cases" or "S cases."
| Small Case | Regular Case | |
|---|---|---|
| Threshold | $50,000 or less per tax year | Any amount |
| Procedures | Informal | Formal |
| Evidence rules | Relaxed — may consider anything relevant | Federal Rules of Evidence apply |
| Trial locations | 74 cities | 59 cities |
| Post-trial briefs | Usually not required | Required |
| Appeal rights | None | Can appeal to Court of Appeals |
| Precedent | Decision doesn't set precedent | Decision may be cited in future cases |
The key trade-off: small cases are simpler and faster, but the decision is final. You can't appeal if you lose.
Small Case Advantages
Small case procedures were designed for people representing themselves. The Tax Court's rules say these cases should be "conducted as informally as possible consistent with orderly procedure."
What this means in practice:
- The judge isn't bound by the formal rules of evidence. If something seems relevant, they can consider it.
- You won't usually need to file formal legal briefs after trial.
- Trials are scheduled faster.
- There are 15 more trial locations available, so you may be able to attend a court session closer to home.
For most pro se petitioners with straightforward factual disputes, small case procedures make the process significantly less intimidating.
The Big Downside: No Appeal
Under IRC § 7463(b), a decision in a small case "shall not be reviewed in any other court."
If the judge rules against you, that's it. There's no second chance. You can't take your case to the Court of Appeals.
In a regular case, either side can appeal. If you believe the Tax Court made a legal error, you have a path to challenge it.
When Small Case Makes Sense
Small case is usually the right choice if:
- Your dispute is under $50,000
- The issue is primarily factual (you have documentation the IRS didn't see, or there's a misunderstanding about your situation)
- You want the case resolved as quickly and simply as possible
- Your dispute is about facts, not about how the law should be interpreted
Most pro se petitioners fall into this category. You're not trying to change tax law — you're trying to show that the IRS got your specific facts wrong.
When Regular Case Might Be Better
Consider regular case procedures if:
- You have a strong legal argument that could benefit from appeal if the Tax Court disagrees
- The same issue affects multiple tax years beyond this dispute
- You want your case to potentially set precedent for others
- You're comfortable with more formal procedures (or have representation)
Regular cases require more procedural formality: stricter evidence rules, formal briefs after trial, and potentially a longer timeline. But you preserve the right to appeal.
You Can Switch — Within Limits
You're not locked in immediately.
- If you start as a regular case, you can request small case status anytime before trial (if you qualify).
- If you elect small case, you can request to change to regular case before trial begins.
- After trial starts, switching becomes much harder.
The court can also remove your small case designation on its own motion if your case raises legal issues of first impression that would benefit from precedent or appellate review. This is rare, but it happens.
How to Elect Small Case
When you file your petition, you'll indicate whether you want small case procedures. If you use the Tax Court's online petition generator, it will ask you.
If you qualify and elect small case, your docket number will include an "S" — for example, 12345-25S.
The Bottom Line
For most pro se petitioners disputing less than $50,000, small case is the right choice. The simpler procedures are designed for people without legal training, and most Tax Court cases settle before trial anyway.
But if you're making a legal argument you might need to appeal — or if you want your day in court to potentially help others in similar situations — regular case preserves those options.
If you're unsure, a Low Income Taxpayer Clinic can help you think through the decision, even if you don't qualify for full representation.
This article is for informational purposes only and does not constitute legal or tax advice. If you're facing an IRS dispute, consult a qualified professional about your specific situation.