Question

How would you know which judicial court system to take your tax case to?

Answer 1

There are following judicial court system to take our tax case to-

A. Judicial Tax Courts-These tax courts are the federal trial courts that hear only tax cases. These are-

1. Court's Small Cases division- United States Tax Court hears only federal tax cases. For this purpose, the taxpayer does not have to pay the disputed tax prior to litigation. Opinions are issued by the Tax Court's Small Cases division and involve disputes of $50,000 or less.

2. The United States District Courts-These are the only tax trial court where a jury trial can be requested by a taxpayer. Taxpayers must pay the amount in dispute and sue for a refund as a condition to litigating in this Court.

3. The United States Court of Federal Claims- It is the court where the taxpayers must pay the disputed amount prior to litigation.

B. Courts of Appeals-Tax cases litigated in the lower level trial courts may be appealed to the U.S. Courts of Appeals or to the U.S. Court of Appeals for the Federal Circuit.

1. The U.S. Courts of Appeals-It review decisions from the Tax Court and the District Courts in the taxpayer geographical residence.

2. The United States Court of Appeals for the Federal Tax Circuit-It reviews decisions from the U.S. Court of Federal Claims.  

C. Supreme Court of the United States-The Supreme Court of the United States hears cases involving constitutional challenges and those involving statutory interpretation in relation to tax matters.

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