When it comes to dealing with the IRS and tax issues, there is a good chance that some of the issues will need to be litigated through a court system. There are a few various of courts for the taxpayer or IRS to handle and file these cases such as, United States Tax Court, U.S. Court of Federal Claims, United States District Courts.
U.S. Tax Court Litigation
When there is a court case for tax issues, the case will be brought before the United States Tax Court. This particular court specializes in dealing with tax law cases, however this court does not present for jury trials. These particular cases are handled and tried by a single judge. Given their extensive knowledge in tax law these judges have a good comprehension of tax law issues, the IRS code and its practices.
Tax Refund Litigation
In the event that a taxpayer overpays their taxes they have a right to a refund in the overpaid amount. However, even though they are due a refund they may have to sue the IRS in order to get their refund. This particular situation is known as tax refund litigation. In order to take this matter to a higher level that taxpayer will need to address the U.S. district courts or the U.S. Court of Federal Claims.
U.S. Court of Federal Claims
The U.S. Court of Federal Claims is a court that specializes in dealing with cases against the United States government. The benefit of this court is not despite citizenship, any person can file a tax refund suit against the U.S. within the Court of Federal Claims.
This court is stationed in Washington, D.C., but deals with cases across the nation. This makes it much easier on the taxpayer given the fact that they can assign a convenient geographical location for the trial. However, the appeal will only be heard by the U.S. Circuit Court of Appeals on behalf of the Federal Circuit. Much like the U.S. Tax Court this particular court does not offer jury trials and will be tried by the one judge.
U.S. District Court Litigation
The United States District Courts has proven to be a particularly accepted choice for taxpayers to bring their case to court. In this situation the taxpayer will litigate their case in the district that is located where they reside. Given the fact that the district court files the appeals with Circuit Court of Appeals, they must adhere to the regulations of the Circuit Court of Appeals. This particular court is the only option where the taxpayer is allowed to have their case tried with a jury.
Summons Enforcement Proceedings
The IRS has an immense amount of authority to summon the taxpayer and/or the third-party to appear in court, as well as bring forth their records such as books and/or papers. While the IRS has a certain level of authority, they must also have a valid reason for the summoning of the taxpayer and/or their records. In short, they can only issue the summons to acquire pertinent information to establish the accuracy of the tax return.
Additional Legal Site: Tax Lawyer Thorn Law Group. Serving throughout the U.S. and D.C.