Question

Eddy Falls is considering litigating a tax deficiency of approximately $229,030 in the court system. He asks you to provide him with a short description of his alternatives, indicating the advantages and disadvantages of each court. a. Indicate to which court(s) the following statements apply: the U.S. Tax Court, a U.S. District Court, or the Court of Federal Claims by selecting "Yes" or "No" for each court.

	U.S. Tax Court	U.S. District Court	Court of Federal Claims
•	Requires payment of deficiency before trial.
•	Appeals go to the court of appeals for the federal circuit.
•	Hears tax cases only.
•	Only one court nationwide.
•	Jury trial available.
•	Each state has at least one; therefore, this forum minimizes the inconvenience and expense of traveling for the taxpayer and his or her counsel.

Answer 1

• Requires payment of deficiency before trial - U.S. District Court and the Court of Federal Claims.
• Appeals go to the court of appeals for the federal circuit - Court of Federal Claims
• Hears tax cases only - U.S. Tax Court
• Only one court nationwide - U.S. Tax Court and the Court of Federal Claims.
• Jury trial available - U.S. District Court
• Each state has at least one; therefore, this forum minimizes the inconvenience and expense of traveling for the taxpayer and his or her counsel - U.S. District Court