In an earlier blogpost, I advised taxpayers seeking like-kind treatment of real property leases to “Go Long”, 6/24/13.

Now come Charles E. & Patti H. Bass, Docket No. 13025-12S, filed 7/25/13, who want to go small. Tax Court small claims procedure per Section 7463, that is.

But there’s a statutory $50K maximum for small-claimers, inclusive of amount of deficiency, additions to tax, penalties and any additional amounts permitted by law.

Chas and Patti have a $190K adjustment in the SNOD, with tax above $50K. So IRS moves to remove the magic letter “S” from the docket number, and it looks like a slam dunk.

But Chas and Patti answer IRS’ motion by saying they’re willing to concede $70K of that adjustment. Thus, only $43K of deficiency remains in dispute.

Good enough for Chief Judge Colvin to let Chas and Patti go small.

Takeaway–Tactically, it might be well to concede your way into a small-claimer.