The United States Tax Court is a branch of the Federal court system that is dedicated to addressing and resolving complications that occur in regard to the payment of taxes. Congress established this trial court in order to handle any Federal income tax disputes.
There are a variety of different legal settings in which an individual can litigate tax discrepancies. However, the U.S. Tax Court functions as the only arena that permits an individual to dispute tax matters prior to paying the full cost of the tax.
For example, an individual can also choose to dispute taxes within the U.S. Court of Federal Claims. If an individual does choose to argue the discrepancy within this forum, he/she will be required to pay the tax prior to the court proceedings. He/she can subsequently file a lawsuit in order to obtain the disputed amount.
Taxation is often a point of extensive debate and argument. The origins of Tax Court can be traced to the Revenue Act, which was passed by Congress in 1924. This legislation was responsible for creating the Board of Tax Appeals. This Board was established due to the growing complexity of tax law and litigation. The Board did not develop into a Tax Court until 1942, when a new Revenue Act was enacted.
Since its inception, the United States Tax Court has continued to grow and evolve. Today, it is responsible for overseeing all discrepancies and controversies involving Federal taxation. This can include payment deficiencies if an individual has failed to pay his/her taxes, or the overpayment of taxes