Tax Court Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Tax Court, written in plain English, along with examples of how it is used.

What is Tax Court?

An specialized agency or court which hears solely taxpayers appeal.They are authorized by state government and federal government in US to hear tax disputes and controversies by which the taxpayers appeals against the Internal Revenue Services(IRS) decisions, without paying the amount claimed by IRS.

History and Meaning of Tax Court

Tax Court is a specialized court in the United States that is responsible for hearing cases related to tax disputes and controversies. This court is authorized by both the federal and state governments to provide a forum for taxpayers to appeal decisions made by the Internal Revenue Service (IRS) without having to pay the amount claimed by the IRS. The Tax Court operates under the United States Tax Court, which was established in 1942.

Examples of Tax Court

  1. A taxpayer disagrees with the IRS's assessment of taxes owed and files an appeal with the United States Tax Court.
  2. A taxpayer receives a notice of deficiency from the IRS and decides to challenge it by filing a petition with the Tax Court.
  3. A corporation files a lawsuit against the IRS in the Tax Court seeking a refund of overpaid taxes.
  4. A taxpayer appeals to the Tax Court after the IRS disallows a claim for a tax credit or deduction.
  5. An individual that disagrees with the findings of the IRS Office of Appeals may elect to file a petition with the United States Tax Court.

Legal Terms Similar to Tax Court

  1. Appeals Court: The appellate court hears appeals from the lower court's decisions.
  2. Administrative Law Judge (ALJ): A judge who is part of an agency that is established by Congress to carry out a particular function.
  3. U.S. District Court: Courts of general jurisdiction that have original jurisdiction over most federal cases.
  4. Small Claims Court: A type of court that handles cases involving small amounts of money or disputes.
  5. Court of Claims: A court that hears cases in which an individual or entity is seeking compensation from the government.