If individuals are faced with a dispute involving the U.S. Internal Revenue Service (IRS), the federal Tax Court maintains a special division for small cases. Their case will qualify for the small case division if the disputed amount that the IRS claims they owe for any one tax year is $50,000 or less, including taxes and penalties. A case that qualifies for small claims handling is given an “S” designation. Most tax court cases are settled without a trial.