A taxpayer generally may bring an action in a tax dispute in the U.S. Tax Court, the applicable Federal District Court, or the U.S. Court of Federal Claims, subject to certain limitations. For some clients, particularly where the amount in dispute is significant, it may be worthwhile to consider the precedent in the applicable appellate court when selecting the venue for the initial tax litigation.
Regular Tax Court cases and tax cases in federal district court are appealed to the relevant Federal Appeals Court in the circuit that would otherwise have jurisdiction over the taxpayer’s claim if it were filed in the federal district court. S cases in the Tax Court cannot be appealed. Appeals of cases in the Court of Federal Claims are brought before the Court of Appeals for the Federal Circuit.