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Tax Appeals

Small Claims Proceedings

As an alternative to a formal hearing, taxpayers have the right to elect a small claims proceeding if the amount in dispute is within certain dollar limits as prescribed by regulations adopted by the Tribunal. Currently, the limits are $20,000 (not including penalty and interest) for any 12- month period for personal income and corporate franchise tax and $40,000 for sales and compensating use taxes. A small claims hearing is conducted informally by a presiding officer whose determination is final on both parties. However, at any time before the conclusion of the small claims hearing, a taxpayer may discontinue the proceeding and request transfer to a formal hearing before an Administrative Law Judge.