Tax Court

AAA

DEFINITION of 'Tax Court'

A specialized court of law that hears and adjudicates tax-related disputes and issues. The tax court in the United States is a federal court established by Congress to provide a judicial forum where an entity could contest a tax deficiency determined by the Internal Revenue Service before paying the disputed amount. The Tax Court of Canada, a superior court established in 1983 that is independent of the Canada Revenue Agency and other departments of the Canadian government, hears tax-related cases in Canada.

INVESTOPEDIA EXPLAINS 'Tax Court'

Tax courts have the authority to provide rulings on a wide range of taxation subjects. The U.S. Tax Court hears cases relating to income, estate and gift tax; it also rules on tax disputes ranging from notices of deficiency and worker classification to reviews of collection actions. Most of the cases heard by the Tax Court of Canada are in connection with income tax, goods and services tax and employment insurance.

The U.S. Tax Court is located in Washington and has 19 members who are appointed by the President. A Tax Court case commences with the filing of a petition, for which a $60 filing fee must be paid. The case is heard by a single judge, and taxpayers may be represented either by themselves or by legal practitioners admitted to the bar of the Tax Court.

RELATED TERMS
  1. Tax Advisor

    A financial expert with advanced training and knowledge of tax ...
  2. First To File Rule

    A rule stating that whoever is the first to file suit is awarded ...
  3. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  4. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  5. Appeals Conference

    A conference that a taxpayer can request with the Internal Revenue ...
  6. Writ

    A legal document written by a judge or other body with administrative ...
RELATED FAQS
  1. What is the difference between income tax and capital gains tax?

    The conceptual difference between income tax and capital gains tax is that income tax is the tax paid on income earned from ... Read Full Answer >>
  2. What is the optimal level of withholding tax to enter on my W-4?

    Most workers in the United States have part of their income withheld from each paycheck. This step is required by the federal ... Read Full Answer >>
  3. How can I calculate my withholding tax rate?

    Your withholding tax rate is estimated by your employer, who relies on the information on your Form W-4. How you fill out ... Read Full Answer >>
  4. What's the difference between short-term investments and marketable securities?

    The chief difference between federal and state withholding taxes is that state withholding is done based on state-level tax ... Read Full Answer >>
  5. Which factors drive the marginal propensity to consume?

    A limited liability company (LLC) is not a separate entity from its business owners but is instead considered a pass-through ... Read Full Answer >>
  6. What is the difference between MAGI (modified adjusted gross income) and adjusted ...

    Calculating personal income tax correctly involves understanding two important tax terms: adjusted gross income (AGI) and ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    The Perks Of Dividend Reinvestment Plans

    These plans offer shareholders a way to directly invest in some of the top companies without the commissions.
  2. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  3. 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.
  4. Taxes

    Should You File An Early Tax Return?

    When it comes to filing your taxes, it can often pay to wait until the deadline.
  5. Taxes

    10 Money-Saving Year-End Tax Tips

    Getting organized well before the deadline will curb your frustration and your tax liability.
  6. Taxes

    Capital Gains Tax 101

    Find out how taxes are applied to your investment returns and how you can reduce your tax burden.
  7. Taxes

    Tax Court: Your Last Resort

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

    Unexpected 1099-R Form: What To Do

    Did your IRA custodian report distributions you thought were non-reportable? Find out what went wrong.
  9. Taxes

    Understanding Income Tax

    Income tax is a levy many governments place on revenue of entities within their jurisdiction.
  10. Economics

    What is a Tax Liability?

    Tax liability is the amount of money a person or entity owes to the government as the result of a taxable event.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center