We previously blogged (here and here) the Tax Court’s amendment of Rule 173(b) to require the IRS to file answers in small tax cases (the amount in controversy is $50,000 or less).  The IRS Chief Counsel has issued amended procedures (CC-2007-009) in response to the changes in Rule 173(b):

This Notice amends the procedures for filing answers with the Tax Court to reflect amended Rule 173(b) of the United States Tax Court’s Rules of Practice and Procedure. Rule 173(b) now requires the filing of answers in all small tax cases brought pursuant to section 7463 in which the petition is filed after March 13, 2007. Previously, answers were not required to be filed in small tax cases unless the case presented an issue on which the Commissioner bore the burden of proof, such as cases in which the Commissioner determined fraud or relied upon an exception to the 3-year statute of limitations, or as otherwise directed by the court. Answers in small tax cases are to conform to the requirements applicable to answers generally as provided in Tax Court Rule 36. The provisions set out below replace the provisions currently in the CCDM on the general requirements of Answers, Pretrial Memoranda, and Affirmative Allegations, and delete the section related to Answers in “S” cases.