Notts County have confirmed they have been issued with a winding-up petition by Her Majesty's Revenue & Customs.
But the npower League One club insist their finances are up to date and expect the case to be thrown out at the High Court on Monday.
County have instructed legal counsel to represent them tomorrow, but insist they will move to recover their costs in addition to claiming damages "for the harm suffered by the Football Club".
"On Friday evening it was brought to the attention of the Notts County Chairman, Ray Trew, that the Football Club is due to appear in the High Court on Monday 11 February to defend a winding up petition," County's statement read.
"This action came without any prior notification to the Chairman and his fellow Directors. After investigation, it was found that this petition was being brought by Her Majesty's Revenue & Customs (HMRC) for PAYE payable on Wednesday 19 December 2012.
"The club can state, unequivocally, that the business is completely up to date with all VAT and PAYE monies and that this action is regarded by the Board as both disruptive and damaging.
"Unfortunately, we had no option other than to instruct legal counsel to represent us, but we fully expect this issue to be resolved in our favour once the judge has before him all the facts.
"Once this has happened, the Board, will be seeking legal advice regarding taking action against HMRC and the officer personally responsible for this and will seek to recover all costs associated with defending the action plus punitive damages for the harm suffered by the Football Club."