- There are a variety of different cases and controversies that are heard by the United States Tax Court throughout the country. Taxpayer deficiency cases, tax liability determinations, employee classifications, interest payment suspensions and Internal Revenue Service (IRS) collections actions are all initially adjudicated under the jurisdiction of the Tax Court. The Tax Court has jurisdiction over questions involving federal taxes and not state taxes; therefore, if a person is declared as deficient regarding his state taxes, then he must appeal through the appropriate state channel.
- The United States Tax Court commonly hears cases brought by taxpayers that challenge the IRS's determination that they are deficient in their taxes. A person will be considered deficient if he pays less than the amount he owes in federal income taxes or if he computes his taxes in error, resulting in a tax payment of less than the amount owed. When the Commissioner of IRS declares a person to be deficient, he will be sent a "Notice of Deficiency" providing 90 days to appeal the declaration in Tax Court.
- The Tax Court is unlike the majority of the courts in the United States, which are created pursuant to Article III of the United States Constitution. Article III is the specific section that creates and details the judiciary branch of the government. The Tax Court, while a court that hears cases like other courts, is created pursuant to Article I, Section 8, clause 18 of the Constitution, which gives the legislature the power to "make all Laws which shall be necessary and proper for carrying into Execution [its] powers..." The Tax Court, therefore, is called an "Article I" court, as opposed to an "Article III" court.
- The Tax Court sits in the District of Columbia; however, due to the nature and importance of its cases, trials are held in most states. Every state except Delaware, New Hampshire, New Jersey and Rhode Island has at least one location to hear Tax Court trials.
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