Federal Tax Procedures: Levels of the Judicial Process

Question 1

Which court is composed of tax experts and only hears tax cases, along with the following:

• Hears cases related to income tax, estate tax, gift tax, and certain excise taxes
• Only court with a small claims division ($50,000 or less) but no appeals allowed
• Not required to pay the disputed amount before judiciary

Answer 1

U.S. Tax Court

Question 1

Which court is composed of generalists, not tax experts, and judges hear all types of legal matters, along with the following:

• Only tax trial court where a jury trial can be requested
• Must pay disputed deficiency and sue for refund
• Many different district courts throughout the country

Answer 1

U.S. District Courts

Question 2

Which court is comprised of generalists, not tax experts, along with the following:

• Must pay disputed deficiency and sue for refund
• Will not hear a case involving a claim for refund of a penalty related to an abusive tax shelter or to aiding and abetting the understatement of tax on someone else’s return
• Only one court of 16 judges located in Washington, D.C.

Answer 2

U.S. Court of Federal Claims

Question 3

Which court may or may not decide to hear a case, but will usually hear a case when an issue has broad implications that are of national importance or when there has been disagreement among the circuit courts?

Answer 3

U.S. Supreme Court