Congress created the Board of Tax Appeals in 1924 as an independent agency in the executive branch to hear disputes over federal income taxes. It was renamed the Tax Court of the United States in 1942, and the Tax Reform Act of 1969 made it the United States Tax Court, an Article I court of record. Its nineteen judges are nominated by the President and confirmed by the Senate for fifteen-year terms, and they are assisted by special trial judges.
Its main attraction for taxpayers is timing. When the IRS sends a notice of deficiency, a taxpayer can petition the Tax Court and contest the amount without paying first, while in the other courts with tax jurisdiction, the district courts and the Court of Federal Claims, the taxpayer must generally pay and then sue for a refund. As a result the Tax Court handles the great majority of litigated federal tax disputes. Cases are tried without a jury, and an informal small tax case procedure is available for disputes of 50,000 dollars or less per year.
Although based in Washington, the court is national and its judges travel to hold trial sessions in dozens of cities. Its decisions in regular cases can be appealed to the regional court of appeals for the taxpayer's residence, while small tax case decisions are final. Many taxpayers in the court represent themselves, and low-income taxpayer clinics provide free help to some.
| Status | Active |
| Part of | Article I vs. Article III Courts |
| Led by | Chief Judge |
| Legal basis | Revenue Act of 1924, Tax Reform Act of 1969, 26 U.S.C. 7441 |
| Official site | ustaxcourt.gov |
| Origin | Board of Tax Appeals, 1924 |
| Type | Article I, since 1969 |
| Judges | Nineteen, fifteen-year terms |
| Key feature | Contest a deficiency without paying first |
| Small tax cases | Up to 50,000 dollars per year, decisions final |
| Appeals go to | Regional court of appeals |
| Date | Board of Tax Appeals 1924, current court since 1969 |
| Location | 400 Second Street NW, Washington, D.C. |