Federal tax controversies can be litigated within the U.S. Tax Court, the U.S. Court of Federal Claims or the federal district courts. The choice which court to litigate in is best made with Experienced Tax Counsel because the court ultimately selected must have the proper authority to hear the type of issue that the taxpayer is needs to have resolved. Each court only has the authority to hear certain types of federal tax matters. This type of authority is referred to in the legal profession as “jurisdiction”.
The factors that experience legal counsel will weigh in making a determination of which court a taxpayer should select include:
After the running of the four month time period, IRS District Counsel assumes control over the case and can be approached for settlement discussions. In matters before a district court or the Court of Federal Claims, settlement discussions available through the Tax Division of the Department of Justice.
The Tax Court’s is also a limited jurisdiction Court. The Tax Court has jurisdiction to review deficiency determinations (a finding that additional tax is owed usually via and income tax examination) asserted against taxpayers for additional income, estate, gift, excise and private foundation taxes. However, once a taxpayer files a petition with the Tax Court, the Tax Court can also determine if there has been an overpayment.
Additionally, the Tax Court has jurisdiction to:
Location of the court,
The location of the court impacts the following factors:
The US Tax Court conducts sessions throughout the United States via traveling circuits that are available in various major cities which are chosen for the convenience of taxpayers. The taxpayer requests a specific trial location at the time the petition is filed.
The Court of Federal Claims is located in Washington, D.C. and, like the Tax Court, the judges travel to hear cases in various major cities throughout the United States.
District courts are located throughout the country and specific choice of venue rules apply to determine where a particular case may be heard. Refund actions must be brought in the district where the taxpayer resides at the time of filing the lawsuit. When a Corporate refund action must be brought in the district in which the corporation’s principal place of business or principal office or agency is located.
Contact me, an Orange County, Irvine, Los Angeles County and Westwood Tax Litigation Attorney, to schedule your reduced rate initial consultation today.