The United States Tax Court (in the case quote, TC ) is a federal court established by Congress under Article I of the US Constitution, section 8 of which provides (in part) that Congress has the power to "form the Tribunal outdone by the Supreme Court". The Tax Court specializes in prosecuting federal income tax disputes, generally before the time when formal tax assessments are made by the Internal Revenue Service. Although taxpayers may elect to file tax claims in various legal settings, beyond bankruptcy, the Tax Court is the only forum in which taxpayers can do so without first paying the full disputed tax. Parties who oppose the imposition of a tax may also file action in any United States District Court, or in the United States Federal Claims Court; But these places require that taxes be paid first, and that the party then filed a lawsuit to recover the contested amount paid ("full payment rule" of Flora v. United States ). The Tax Court Judge is appointed for a period of 15 years, subject to revocation of the presidency due to "inefficiency, negligence, duty or irregularities in the office...."
Video United States Tax Court
History
The first incarnation of the Tax Court was the " US Board of Tax Appeals , established by the Congress in the Revenue Act of 1924 (also known as Mellon's tax bill) to address the increasing complexity of tax-related litigation. Those serving on the Board are only designated as "members." Council members are empowered to vote, on a two-year basis, one of their members as "chairman." The Council originally had 16 members, with Charles D. Hamel serving as the first Chairman. The Council was originally established as an "independent agent in the executive branch of government." It's placed in the House of Internal Revenue Service in the Federal Triangle. The first session of the Tax Appeal Application stretched from 16 July 1924 to 31 May 1925.
In 1929, the Supreme Court of the United States declared that the Tax Appeal is not a "court", but instead was "executive or administrative council, on the decision which the parties were given a chance to base the petition for review, after the investigation of the administration of the Council was owned and decided. "
In 1942, Congress passed the Revenue Act of 1942, renaming the Council as a "United States Tax Court". With this change, the Member becomes the Judge and the Chairman becomes the Chief Judge. By 1956, the density and willingness to separate the judicial and executive powers led to an early attempt to relocate the courts. In 1962, Secretary of State Douglas Dillon appealed to the US General Services Administration (GSA) to include funds for the design of new buildings in the forthcoming budget. GSA allocated $ 450,000, and commissioned renowned architect Victor A. Lundy, who produced a design approved in 1966. However, the funding constraints imposed by the Vietnam War delayed the start of construction until 1972.
The Tax Court re-renamed the current official appointment in the Tax Reform Act of 1969, turning it from an administrative tribunal into a full trial court. The United States Tax Court Building which had been dedicated on November 22, 1974, the fiftieth anniversary of the Revenue Act that created the court.
In 1991, the US Supreme Court at Freytag v. The Commissioner declares that the United States Tax Court is currently "the legislative tribunal of Article I" which "exercises part of the judicial powers of the United States." The Court explained that the Tax Court "exercises judicial power by excluding other functions" and that "exercises its judicial power in the same way as a federal district court conducts it...." This "special judicial role distinguishes it from other non-Article III courts conducting several functions... "Thus, Freytag concludes that the Tax Court runs a" judicial, not executive, legislative, or administrative, power. "The Tax Court" remains independent of the Executive and Legislative Branch "in the sense that its decision is not subject to appeals by the Congress, the President, or in this case, the District Court Article III. The President, however, may remove the judge of the Tax Court, after notice and opportunity for public hearing, for "inefficiency," "neglect of duty," or "deviation in office."
Judge Scalia wrote separate approval for four judges at Freytag . These judges disagree with the reason of the majority of the Court; they will characterize the power of the Tax Court as "executive" rather than "judiciary." Scalia says that to him "it seems [ed]... it is entirely clear that the Tax Court, like the Internal Revenue Service, the FCC, and the NLRB, exercises executive power." Despite Scalia's sharp disagreements in cases of separation of powers such as Mistretta v. United States and Morrison v. Olson , Scalia apparently "described [d] Freytag as the single worst opinion of his position" in the US Supreme Court.
Although the directory of government and legislative executive officers ("US Plum" 2008) categorizes the Tax Court as part of the legislative branch, the revised 2012 version removes the Tax Court and enrolls it under both the legislature and the executive branch.
Under the amendment to the 1986 Internal Revenue Code adopted at the end of 2015, the US Tax Court "is not an agency of, and will be independent of, the executive branch of the Government." However, section 7443 (f) of the Code still stipulates that the judge of the Tax Court may be removed by the President "due to inefficiency, negligence of duties, or deviations in office".
Maps United States Tax Court
Jurisdiction of Tax Court
The Tax Court provides a judicial forum in which the affected persons may question the tax deficiency determined by the Internal Revenue Commissioner before the payment of the disputed amount. The jurisdiction of the Tax Court includes, but is not limited to the authority to hear:
- tax dispute related notices about deficiencies
- notification of transferee liability
- certain types of declaration scores
- customization and adjustment of partnership items
- review failures to reduce interest
- administrative costs
- the classification of workers
- help from a mix and some responsibility for shared returns
- review of specific collection actions
Congress changes the Internal Revenue Code, now codified in the Internal Revenue Code section 7482, provided that the Tax Court ruling may be reviewed by the applicable United States Geographical Appeals Court other than the Court of Appeals for the Federal Circuit. (See Article I and Article III of the tribunal).
"Small Tax Cases" is done under the Internal Revenue Code section 7463, and generally only involves a controversial amount of $ 50,000 or less for a tax year. The procedure "Small Tax Case" is available "at the option of the taxpayer." These cases can not be won or precedence.
Sometimes there is an attempt at the Congress and Tax Bars to create a national Appellate Court for tax cases (or make a decision of the Tax Court appeal to the existing Court of Appeals), to maintain uniformity in the application of state tax laws (reasons underlying the creation of the Tax Court and grants national jurisdiction to the Tax Court), but attempts to avoid "village outcomes" or inconsistent results due to lack of expertise have failed.
An important reason for the movement to create a national Court of Appeals for tax cases is that the United States Tax Court has no exclusive jurisdiction over tax cases. In addition to the Tax Court, federal tax issues can be heard and decided in three other courts: US District Court, Federal Claims Court, and Bankruptcy Court. In the first two instances, the taxpayer carrying the claim in general must first pay for the deficiencies set by the IRS. For the Bankruptcy Court, tax matters should, of course, arise as a problem in the bankruptcy process. Bankruptcy Court Appeal initially to US District Court. Appeals outside the US District Court and the Federal Claims Court follow the same path as the US Tax Court did as described above.
With this number of courts involved in legal decision-making on federal tax matters including the 13 US Courts of Appeals that use the jurisdiction of appeals (11 numbered circuits, Federal Circuit (for appeals from the US Court of Federal Claims), and DC Circuit) some observers have expressed concern that tax laws may be interpreted differently for similar cases. Thus the movement appears on the part of some to Federal Court of Federal Appeals, although the benefits of this are a matter of much discussion.
Judge
The Tax Court consists of 19 judges appointed by the President and confirmed by the Senate. Former judges whose term of office has expired may become "senior judges", may return and assist the court with hearing cases while on duty in recall. In addition, the court is assisted by a number of "special court judges", who are court employees, appointed by the chief judge of the Tax Court, not by the President. Special court judges serve functions similar to those served by district court judges in the United States, and may hear cases of alleged deficiencies or overpayments of up to $ 50,000. The reappointment, when requested by a tax court judge (IRC 7447 (b) (3)) is generally pro forma apart from a political party appointing the President and the political party from the re-appointment of the President. Every active judge appointed by the President has two "legal clerks" (lawyers) and each senior judge and a special court judge has one law officer.
President George W. Bush was strongly criticized by the US Congress, Tax Bar and others when he indicated that he probably would not, or may not, re-appoint a judge of the Tax Court whose term of office ended (though the first Judge to whom President Bush's satisfaction was questioned, John O. Colvin, appointed by President Ronald Reagan). President Bill Clinton was also criticized for not acting in a timely manner to re-appoint the judge of the Tax Court, after allowing one term of the Chief Justice to end, requiring the Tax Court to elect a new Chief Justice. In addition, some Tax Court Judges must wait for more than a year (sometimes more than two years) to be reappointed during the Clinton presidency.
Trial trials are conducted and other work of the Court is conducted by judges, by senior judges assigned to withdrawals, and by special court judges. All judges have expertise in tax laws, and are assigned to "apply that expertise in a way to ensure that taxpayers are judged only by what they owe, and no more." Although the Court's "main office" is located in the District of Columbia, Tax Court judges may sit "anywhere in the United States". Judges travel nationwide to conduct trials in designated cities. The work of the Tax Court is sometimes disturbed by events. In 2001, a trial session in New York City was canceled for the September 11 terrorist attacks. In 2005, stops in Miami and New Orleans were canceled due to the effects of hurricanes that hit shortly before the scheduled visit to each city.
The Tax Court Judge is serving a 15-year sentence, subject to the lifting of the presidency during the term for "[I] inefficiency, negligence, or irregularities in the office." The jury's salary is set at the same level as "[J] udges from the district court in the United States", currently $ 169,300.00 per year.
Party Representation
The Chief Counsel of the Internal Revenue Service (IRS) or its delegation represents the executive branch of the Tax Court. The Tax Court allows non lawyers to the Act to be accepted for practice (to represent taxpayers) by applying for admission and passing the examinations made by the Court. Lawyers who provide proof of membership and reputation in either country bars or D.C bars. can be accepted in the Court bar without sitting for Tax Court hearing. Tax Court Practices are highly specialized and most practitioners are licensed lawyers who specialize in tax controversies.
Tax Court Dispute incident
Many Tax Court cases involve disputes over Federal income taxes and penalties, often after examination by the Internal Revenue Service of the return of the taxpayer. After issuing a series of initial written notices and a lack of agreement between the taxpayer and the IRS, the IRS formally "determines" the number of "deficiencies" and issues an official notice called "a notice of deficiency," or "legal notice" of a ninety-day letter. , the term "deficiency" is an art law term, and is not always equal to the amount of unpaid taxes (though usually).The drawback is generally the excess of the IRS in question is the correct tax on the number of taxpayers shown back - in both cases, regardless of how much has been paid.
After issuing a notice of deficiency (after IRS determination of the tax amount, but prior to the formal IRS tax assessment), the taxpayer generally has 90 days to petition the Tax Court for "redetermination of deficiencies". If no petition is filed on time, the IRS can then formally "assess" the tax. To "assess" tax in this sense means to administratively and formally record taxes on the books of the US Treasury. Formal formal appraisal is a critical measure, since the compulsory tax lien which is in effect effective retroactively on the date of appraisal, and imposed all property and property rights on the taxpayer's property.
Tax Court case life cycle
Due to the negative legal consequences that occur with regard to legal judgments (especially the lien tax and the terms of Flora that the taxpayer otherwise paid the full disputed amount and demanded a refund), the taxpayer is often advised to apply for a tax court timely. The rules in the Tax Court are that taxpayers sued the "Commissioner of Internal Revenue," with taxpayers as "applicants" and Commissioners as "respondents." This rule is an exception to the general rule that the right defendant in a US tax case filed by a taxpayer against the government is "the United States." In the Tax Court, the Commissioner is not personally named. "Minister of Finance", "Ministry of Finance" and "Internal Revenue Service" is not the right party.
Petitions must be submitted on time within the time allowed. The court can not extend the filing time regulated by law. The $ 60 filing fee should be paid when the application is filed. After the application is filed, the underlying tax payment is usually delayed until the case is decided. In certain tax disputes involving $ 50,000 or less, the taxpayer may elect to have a case done under the simplified small tax case procedure of the Court. Trials in small tax cases are generally less formal and result in faster dispositions. However, decisions incorporated in accordance with the small tax procedure can not be appealed and are not presedential.
Cases are prepared for trial as soon as possible (based on first entry/exit first) after the case becomes a problem. When a case is adjourned, the parties will be notified by the Court of the date, time, and place of trial. Trials are conducted before one judge, no jury, and taxpayers are allowed to represent themselves if they wish. However, most cases are solved by mutual agreement without the need for trials. However, if the court is to do so, in due time a report is usually issued by the presiding judge presenting the findings of facts and opinions. This case is then closed in accordance with the opinion of the judge with the entry of the decision.
Appeals Review
Neither the applicant (taxpayer) or the respondent (Internal Revenue Commissioner) may appeal from the adverse decision of the Tax Court to the appropriate US Court of Appeals. In the case of appeals by taxpayers, bonds are usually required to avoid enforcement action during the appeals process. Instead of appealing, the Internal Revenue Service may issue an "Action on Decision" that shows the Commission's "inconsistency" in the decision, which means that the Commissioner will not follow the decision in subsequent cases. In such cases, the Commissioner hopes there will be an opportunity to file a case at another circuit where he will have a better chance of obtaining an appeal.
Note
References
Some of the information on this page comes from the website of the US Tax Court, which, as a publication of the United States government, is in the public domain.
External links
- The United States Tax Authorized Web Site
- US Tax Court Rules and Procedures
- IRS Appeal - Resolving Official IRS Tax Dispute Applying Office Website
Source of the article : Wikipedia
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