U.S. District Court
for Civil Tax Litigation
U.S. District Court: wide-ranging civil tax litigation
The U.S. District Courts are more like general practitioner doctors than specialists (i.e. psychiatrists, cardiac surgeons, etc.). These courts handle various types of litigation involving federal laws, disputes between citizens of different states, and so forth. The U.S. District Courts may also determine most types of tax cases. However, these Courts are the only ones that can hear cases on the following matters:
- Summons enforcement actions filed by the United States
- Petitions to quash third-party summons filed by the taxpayer
- Quiet title actions brought by the United States
- Actions to enforce or discharge liens in favor of the United States
- Judicial approval of principal residence levy filed by the United States
- Erroneous refund suit filed by the United States
- Tax return preparer and tax shelter injunction suits filed by the United States
- Actions to quiet title, foreclose, partition, condemn, or interpleader with respect to real property on which the United States claims a lien
- Wrongful levy actions
- Review of jeopardy levy or jeopardy assessment filed by the taxpayer
- Civil damage actions against the United States for IRS failure to release lien or certain unauthorized collection actions
- Claims for refund of trust fund recovery penalties
U.S. District Court: some important considerations
Before you can file certain kinds of civil tax litigation in U.S. District Court, you must first pay the amount demanded by the IRS and file a claim for a refund. Then, the IRS has six months to reject your claim. (It’s fairly rare for the IRS to admit that it was mistaken and give you a refund, but that’s the required bureaucratic procedure.) Often, U.S. District Court is the court of choice for individuals and companies that missed the U.S. Tax Court deadlines, or those who wish for the people (i.e. the jury) to decide their case. In all of the other civil tax courts, these cases are decided by judges that go through a politician-based selection process.
U.S. District Court: background
The U.S. District Courts (also called Federal District Courts or Article III Courts) get their authority from Article III of the Constitution and Acts of Congress. There is at least one U.S. District Court district in each state and 94 districts throughout the country. Appeals of decisions from the U.S. District Courts occur in 12 regional circuit courts of appeals. Appeals from the regional circuit courts are taken to the U.S. Supreme Court.
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