Stipulation of Facts in Tax Court

What a stipulation of facts is

After you petition the U.S. Tax Court, the IRS is represented by an attorney from its Office of Chief Counsel. Before trial, that attorney (or an Appeals officer working the case) will usually send you a draft stipulation of facts. The Tax Court defines it as “a document signed by both the petitioner and the respondent outlining relevant facts of the case not in dispute,” with undisputed documents usually attached as exhibits. The IRS manual calls it a formal document of “mutually agreed statements of fact which require no proof in Court” (IRM 8.4.1).

The stipulation is not optional. Tax Court Rule 91(a) says the parties “are required to stipulate, to the fullest extent to which complete or qualified agreement can or fairly should be reached,” all relevant matters that are not privileged, whether they are facts, documents, or how the law applies to the facts. The same rule says this applies “without regard to where the burden of proof may lie.” So neither side can refuse to agree to a true fact just because it helps the other.

Every document in the stipulation is one you don’t have to prove at trial. For the informal document exchange that usually comes first, see the Branerton letter and informal discovery.

Stipulation of facts vs stipulation of settled issues vs stipulated decision

Three documents with similar names do very different jobs:

A stipulation of facts can mention amounts without agreeing what the tax should be. If the IRS sends you a document with a dollar amount of tax or penalty and a line for the judge’s signature, that is a stipulated decision, not a stipulation of facts. Our page on settling a Tax Court case covers decision documents.

What goes into a stipulation and what it looks like

The Tax Court’s petitioner guidance lists items you should normally be able to agree on:

• a copy of the tax return or returns;
• a copy of the notice of deficiency (or other notice the case is based on);
• agreements or contracts that concern the disputed items;
• canceled checks, receipts or invoices that concern the disputed items.

Rule 91(b) sets the form. The stipulation must be in writing and signed by the parties or their counsel. It must be “clear and concise,” with separate items in separate numbered or lettered paragraphs. Exhibits are numbered in order, followed by “P” if you offer it, “R” if the IRS (the respondent) offers it, or “J” if it is joint, for example 1-J, 2-J, 3-P. Documents the parties intend to place before the court must be attached to or filed with the stipulation.

Paragraphs can be “qualified”: you may agree that a document is what it appears to be without agreeing it proves what the IRS says. A typical qualified line reads “Petitioner kept the mileage log attached as Exhibit 4-J; respondent does not agree that the log was prepared at or near the time of the trips.”

How to respond to the IRS draft, step by step

1. Read every paragraph against your records. Check each numbered paragraph of the IRS draft against your return, the notice of deficiency and your own documents. Mark anything that is wrong, incomplete or worded in a way that implies a conclusion you do not accept.
2. Check every exhibit. Open each attached exhibit and confirm it is complete, legible and the document the paragraph says it is. Exhibits are numbered with P (yours), R (the IRS’s) or J (joint).
3. Propose corrections in writing. Send the IRS attorney a marked-up copy or a short letter listing each paragraph number and the wording you propose instead. Keep a copy and a record of when you sent it.
4. Add your own facts and documents. Ask for paragraphs and exhibits that support your side: receipts, bank records, contracts, logs. Rule 91 requires stipulating facts that fairly should not be in dispute, whoever has the burden of proof.
5. Note objections instead of refusing. If you agree a document is genuine but think it is irrelevant, you can sign and note the objection in the stipulation. Under Rule 91(a), a relevance objection is not a reason to refuse to stipulate.
6. Sign only the final version and meet the deadline. Sign once the text matches what you agreed. The standing pretrial order requires the stipulation of facts, with its documents, to be filed no later than 14 days before the first day of the trial session.

You do not have to sign the first draft; negotiating the wording is normal.

Why signing matters: a stipulation is binding

Rule 91(e) says a stipulation “will be treated, to the extent of its terms, as a conclusive admission” by the parties who signed it. The court “will not permit a party to a stipulation to qualify, change, or contradict a stipulation in whole or in part, except that it may do so if justice requires.” So treat every paragraph as something you will not be able to argue against at trial.

• Only this case. Rule 91(e) also says the stipulation is binding “only in the pending case” and “cannot be used against any of the parties thereto in any other case or proceeding.”
• Objections. Rule 91(d) says objections should be noted in the stipulation. The court will also consider objections made when trial begins, or during trial for good cause.
• Joint petitions. If you and your spouse petitioned together, the Tax Court notes that both signatures may be needed on a stipulation of facts.

A stipulation is not a substitute for proof of everything else. Rule 149(b) says filing a stipulation “does not relieve the party, upon whom rests the burden of proof” of proving facts the stipulation does not establish. For how the burden works at trial, see calendar call and trial.

Deadlines from the standing pretrial order

The Tax Court sends a notice setting your case for trial, generally about five months before the trial date, with a standing pretrial order. The order served in your case controls, but the court’s current samples (served January 2026) set these stipulation-related dates, counted back from the first day of the trial session:

The order warns that if a complete stipulation is not ready 14 days before trial “due to lack of cooperation by either party, the Court may order sanctions against the uncooperative party,” and the court “may refuse to receive in evidence” documents not filed as proposed exhibits by the 7-day date. In a small tax case the order uses “should” rather than “must” for some items, but the dates are the same. See Tax Court small case procedure for S case differences.

If one side won't stipulate: Rule 91(f) and requests for admission

If, after the notice setting the case for trial is served, a party refuses to confer or to stipulate, the other side can file a motion to compel stipulation under Rule 91(f) no later than 45 days before the calendar call. The motion must list each proposed paragraph and the basis for it. The court then normally issues an order to show cause, and the party it is aimed at has 20 days from service to respond, admitting what isn’t disputed and explaining, with sources, anything that is.

This works both ways. If the IRS attorney won’t agree that your genuine documents are authentic, you can use the same rule, or bring the documents as proposed trial exhibits by the 7-day deadline (the Tax Court’s checklist says to bring three copies of any document the IRS won’t stipulate).

Doing it yourself, free help, and when to bring in a professional

Many petitioners handle the stipulation themselves; it is mostly careful reading and good records.

• Tax clinics and calendar call programs. The court lists clinics and pro bono programs by trial city. Low Income Taxpayer Clinics can represent eligible taxpayers in court for free or a small fee (IRS LITC page).
• The court’s own guidance. The Tax Court’s guidance for petitioners explains each step for people representing themselves; it says it provides “information, but not legal advice.”
• A representative. Worth considering when the draft contains legal conclusions, when many exhibits or years are involved, or when fraud penalties are at issue. Anyone who appears for you in Tax Court must be admitted to practice before the court; ask about that before hiring.

Global Gate Tax Relief’s team includes licensed tax attorneys, enrolled agents and CPAs. In a free consultation we review your notice, your records and where your case stands, and tell you plainly if you can handle it yourself. If we take the case, the flat fee is quoted upfront and no outcome is promised. Request a free case review or call 1-877-800-8180.

Frequently asked questions

Keep reading in the IRS Audit Guide

• U.S. Tax Court step by stepHow a case moves from petition to decision.
• The Branerton letterInformal discovery that usually comes before the stipulation.
• Calendar call and trialThe pretrial order, pretrial memorandum and burden of proof.
• Settling a Tax Court caseDocketed Appeals and the stipulated decision.
• IRS audit with missing recordsHow to rebuild the documents you want to stipulate.
• Tax Court small case procedureHow S cases handle evidence and trial.