Secondary
Most tax discrepancies can be resolved between the taxpayer (or their representative) and the auditing agent working for the local IRS division. However, tax issues that cannot be resolved between the IRS and the taxpayer may be taken to the federal courts for resolution.

Three Courts to the Federal Judicial System:


1) U.S. Tax Court
  • Tax cases only
  • Nineteen judges nationwide
  • Jury trial is not available
  • Tax liability is paid only if there's an adverse judgment
  • No appeal for the small cases division

2) U.S. District Court

  • Tax and non-tax issues
  • One judge per court location
  • Jury trial is available
  • Taxpayer must first pay deficiency and then sue for refund

3) U.S. Court of Federal Claims

  • Monetary claims against the U.S.
  • Sixteen judges nationwide
  • Jury trial is not available
  • Taxpayer must first pay deficiency and then sue for refund

If the tax issue was not resolved to satisfaction in one of the above courts, then the taxpayer may have the right of appeal. This can be done in the Washington DC Court of Appeals, the Court of Appeals for the Federal Circuit or at one of the eleven Circuit Courts of Appeals.

Research Sources
There are several sources that can be utilized for tax research and planning needs, they include the following:

  • IRS website (www.irs.gov)
  • Tax guides and manuals (available at amazon.com and bookstores)
  • Tax software (H&R Block, Turbo Tax, etc…)
  • Internet web searches (type key words to search)
  • Tax professionals (advice of CPAs, Enrolled agents, financial planners)
  • IRS Publications
  • Contact the IRS by phone
  • Private letter rulings


Sample Questions 1 - 5

Related Articles
  1. Taxes

    Tax Court: Your Last Resort

    Appealing an unfavorable or unfair tax ruling may be your last chance to save your finances.
  2. Taxes

    How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.
  3. Taxes

    The Court Cases That Have Shaped US Sales Tax Law: How They Apply Today

    Explore two Supreme Court cases that established legal precedent for the treatment and apportionment of sales taxes at the state level.
  4. Financial Advisor

    IRS Allows Mortgage Deduction for Unwed Couples

    Single taxpayers who co-own one or more of their homes with another person can now each claim a deduction for the mortgage interest.
  5. Taxes

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  6. Taxes

    IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.
  7. Taxes

    Start Over With The IRS

    If you're struggling to pay back taxes, try a fresh start with the IRS. They really can help.
  8. Insights

    How The IRS Works: Functions & Audits

    Even the most enlightened citizen curses taxes, possibly while simultaneously acknowledging that they're the price of a civilized society.
  9. Investing

    Patent Trolls Dealt Blow in High Court Ruling

    By narrowing the interpretation of a relevant statute, the Supreme Court limits 'venue shopping.'
  10. Taxes

    5 Ways To Receive Your Tax Refund

    Taxpayers in the U.S. can receive their income tax refund in many different forms - checks, debit cards, savings bonds and direct deposits. Find out which one is right for you.
Frequently Asked Questions
  1. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ...
  2. What is the 'three-legged stool'?

    The "three-legged stool" was a retirement terminology from the past that many financial planners used to describe the three ...
  3. If I am looking to get an investment banking job, what education do employers prefer? MBA or CFA?

    If you are looking specifically for an investment banking position, an MBA may be marginally preferable over the CFA. The ...
  4. Is a Simplified Employee Pension (SEP) IRA tax deductible?

    Learn everything you need to know about your SEP IRA, including the benefits to employers and whether or not a SEP IRA is ...
Trading Center