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The Serie A outfit have it all to do in the Vicente Calderon after Diego Costa's late strike at San Siro gave Atletico a crucial advantage heading into the return leg.
But Taarabt, who joined from QPR in January, can see no reason why Milan cannot go and produce the result they need to reach the quarter-finals of the competition.
"We should have won in the San Siro, it could have been 2-0 but we were unlucky," he told the club's official television channel.
"On Tuesday we've got no fear about taking on Atletico Madrid.
"They're a strong side, they're second in the Spanish league, but the Champions League is a different competition.
"At the San Siro we showed that we can dominate, I see no reason why we can’t do the same over there in Madrid."
Clarence Seedorf's side go into the game having lost their last two league fixtures, leaving them 10th in the top flight.
