Powers of the U.S. Tax Court

The U.S. Tax Court is a dedicated court with special and original jurisdiction over federal tax cases. This court is an ‘Article I’ court, and this article in the Constitution provided for its establishment and jurisdiction. This court is largely provided for so that citizens may dispute tax amounts, deficiencies and other issues which arise between the individual and the Commissioner of Internal Revenue. When the Tax Court will be hearing a case, the individual is not required to pay any due taxes until the dispute is resolved.

Jurisdiction of the U.S. Tax Court

In addition to hearing tax amount disputes, the U.S. Tax Court may determine or do the following:

* Redetermine transferee liability

* Make declaratory judgments
* Adjust partnership items owned
* Order an abatement of interest
* Award administrative and litigation costs
* Redetermine worker classification
* Determine relief from joint and several liabilities on a joint return
* Review certain collection actions by the IRS
* Review awards to whistleblowers providing information to the Commissioner since December 20, 2006

There are 19 judges in the Tax Court who are presidentially appointed, and trials are carried out by these judged in addition to senior and special trial judges. The Court is located in Washington, D.C., though judges will travel to various cities in order to hear tax cases. 

Cases in U.S. Tax Court

The purpose of the Tax Court is to ensure that taxpayers are assessed and asked to pay no more than what they rightfully owe according to tax laws and the facts presented in court. In order to bring a case in the U.S. Tax Court, the court must receive a petition within a specific period of time outlined within the tax laws. A filing fee of $60 must be paid at that time, and any claimed amounts owed in taxes are suspended until the case is determined by the court.

If the dispute involves a monetary amount of $50,000 or less, the petitioner may choose to have his or her case heard under what is known as a ‘small tax case procedure.’ This procedure is typically much faster in producing a decision and less formal than larger cases, but any decision made by the Court may not be appealed. Should the petitioner choose a regular trial and disagree with the Court’s final judgment, the case may be appealed to the corresponding U.S. Court of Appeals.

Article I Courts

As an Article I tribunal or court, the U.S. Tax Court was created by Congress, but the judges are not protected under Article III of the Constitution. This means that the Tax Court judges are not appointed for life, and Congress may also reduce their salaries. In the past, the Supreme Court has ruled that if any decision in an Article I tribunal may deprive life, liberty, property or property interest, it may be reviewed in an Article III court, which is what the U.S. Courts of Appeals are considered to be. Further information may be found on the Tax Court’s website at

http://www.ustaxcourt.gov/index.htm.