Federal Tax Research Guide

U.S. Tax Court

• Cases heard involve disputes where the taxpayer has not paid the disputed taxes before filing suit.
• Higher level of expertise in tax matters than District Courts, especially for technical tax issues.  
• No jury trials. 
• Follows the decisions of the Circuit Courts.  Appeals are to the U.S. Court of Appeals for the taxpayer’s state of residence, and from there to the U.S. Supreme Court.  
• Issues three types of decisions:
  • Regular Opinions (Official reports: United States Tax Court Reports (T.C.) (KF6280 .A2 T37); Lexis: US Tax Court Division Opinions (1942-date); Westlaw: U.S. Tax Court Division Opinions (T.C.) (1924-date)).
    • Decisions involving new, unusual or important legal issues, such as interpretations of the Code that have never been litigated.
    • Treated as a “published opinion.”
  • Memorandum Opinions (no official reports) (Unofficial:Tax Court Memorandum Decisions, CCH (Cited: T.C.M.); KF6280 .A2 C64  (Lexis: US Tax Court Memorandum Decisions (1942-date); Westlaw: U.S. Tax Court Memorandum Opinions (T.C. Memo) (1928-date)).
    • Cases concerning taxpayer factual situation and not interpretation of  the tax code.   Decisions here deal with application of existing law and interpretations of fact.  Cases do not involve novel issues.  Viewed as best court to try more technical tax issues.  The number of these decisions far exceed Regular Opinions.
    • While memorandum opinions may not be used for precedent, their precedential value is changing, much like “unpublished” federal opinions.
  • Summary Opinions (Lexis: US Tax Court Summary Opinions (2001-date); Westlaw: U.S. Tax Court Summary Opinions (T.C. Summary) (2001-date).
    • Opinions issued by the Tax Court's Small Cases Division, similar to a small claims court, involving disputes of $50,000 or less.
    • Pursuant to Internal Revenue Code Section 7463(b), summary opinions may not be treated as precedent for any other case.

U.S. District Court (In Federal Supplement (F.Supp., F.Supp.2d); KF120 .F4; Lexis: All Tax Law Cases; Westlaw: U.S. District Courts Tax Cases (1789-date)).. 

• Cases heard in both the federal district courts and the U.S. Court of Federal Claims involve disputes where the taxpayer has paid the disputed taxes & filed for a refund before filing suit – refund suit.
• Judges don’t have same level of expertise as Tax Court, because the district court is a court of general jurisdiction.
• Jury trials allowed.
• Lower level of tax expertise
• Appeals are to the U.S. Court of Appeals covering taxpayer’s state of residence, and from there to the U.S. Supreme Court.

U.S. Court of Federal Claims (In Federal Claims Reporter (Fed. Cl.); KF125 .C5 U55; Lexis: US Court of Federal Claims, Claims Court & Court of Claims Cases (1856-date); Westlaw: U.S. Court of Federal Claims Tax Cases (1856-date)).

• Cases heard involve disputes where the taxpayer has paid the disputed taxes before filing suit for refund.
• Judges are not tax specialists.
• No right to a jury trial.
• Appealable to the U.S. Court of Appeals for the Federal Circuit.

U.S. Court of Appeals for the Federal Circuit (Federal Reporter (F., F.2d, F.3d) KF105 .F4 1924; Lexis: Federal Circuit - US Court of Appeals Cases (1982-date); Westlaw: U.S. Courts of Appeals Tax Cases).

• The Court of Appeals for the Federal Circuit was formed in 1982 to review decisions of what is now the Court of Federal Claims.  As the Supreme Court reviews so few Court of Appeals decisions, the Court of Federal Claims-Federal Circuit route offers a forum-shopping opportunity.  Taxpayers living in circuits where appellate court decisions with similar issues are adverse can avoid the law of their home circuits by suing in the Court of Federal Claims.

U. S. Courts of Appeals (Federal Reporter (F., F.2d, F.3d) KF105 .F4 1924; Lexis: All Tax Law Cases; Westlaw: U.S. Courts of Appeals Tax Cases (1891-date)).

• Review cases from U.S. District Courts (located within that Court of Appeals circuit), U.S. Tax Court, and the U.S. Court of Federal Claims.

Supreme Court of the United States (U.S. Reports (U.S.); KF101 .A31; Lexis: U.S. Supreme Court Cases, Lawyers' Edition (1790-date); Westlaw: U.S. Supreme Court Tax Cases (1790-date)).

• Hears about 12 tax cases annually.
• The court hears cases that involve constitutional challenges in addition to those concerning statutory interpretation.