Question

In which courts may litigation dealing with tax matters begin? (Select all that apply.)

A. the U.S. Court of Federal Claims
B. the Tax Court
C. the taxpayer's state court
D. the U.S. district court for the taxpayer's jurisdiction

Answer 1

Litigation dealing with tax matters can begin in the U.S. Court of Federal Claims, the U.S. Tax Court, or the U.S. district court for the taxpayer's jurisdiction. Federal tax disputes are handled in the federal court system, and are not initiated in the taxpayer's state court.

Step-by-step explanation:

When dealing with tax matters, litigation may begin in various courts. Specifically, the litigation can start in the U.S. Court of Federal Claims, which hears monetary claims based on the Constitution, federal laws, or executive regulations. Another option is the U.S. Tax Court, which focuses on cases related to tax disputes and tax deficiency issues.

However, it should be noted that the taxpayer's state court is not typically the venue for initiating federal tax litigation. State courts handle issues under state tax law, whereas federal tax disputes are initiated in the federal court system where they can properly address questions of federal tax law and the Internal Revenue Code.