Tax Insights

Your Guide to State, Local, Federal, Estate + International Taxation

No Respect for the Tax Court

The Tax Court doesn’t get much love out there by some.  They contend the Tax Court does not have the authority to decide legal issues. However the law says otherwise.

The United States Tax Court is a federal court of record established by Congress under Article 1 of the United States Constitution.  Congress created the Tax Court to provide a judicial forum in which affected persons could dispute tax deficiencies prior to payment of the disputed amount.  The jurisdiction of the Tax Court includes the authority to hear tax disputes concerning notices of deficiency, notices of transferee liability, certain types of declaratory judgment, readjustment and adjustment of partnership items, review of the failure to abate interest, administrative costs, worker classification, relief from joint and several liability on a joint return, and review of collection due process actions.

Section 7441 provides that “there is hereby established, under article 1 of the Constitution of the United States, a court of record to be known as the United States Tax Court.  The members of the Tax Court shall be the chief judge and the judges of the Tax Court.”  Section 7442 provides that the “Tax Court and its divisions shall have such jurisdiction as is conferred on them by this title, by Chapters 1, 2, 3, and 4 of the Internal Revenue Code of 1939, by title II and title III of the Revenue Act of 1926 (44 Stat. 10-87), or by laws enacted subsequent to February 26, 1926.

Dale F. Jensen, CPA