Question

The IRS recently completed an audit of Shea’s tax return and assessed $15,000 additional tax. Shea requested an appeals conference but was unable to settle the case at the conference. She is contemplating which trial court to choose to hear her case. Provide a recommendation based on the following alternative facts:

1. Shea resides in the 2nd Circuit, and the 2nd Circuit has recently ruled against the position Shea is litigating.
2. The Federal Circuit Court of Appeals has recently ruled in favor of Shea’s position.
3. The issue being litigated involves a question of fact. Shea has a very appealing story to tell but little favorable case law to support her position.
4. The issue being litigated is highly technical, and Shea believes strongly in her interpretation of the law.
5. Shea is a local elected official and would prefer to minimize any local publicity regarding the case.

Answer 1

(assuming the above are mutually independent cases) =>

1. Shea resides in the 2nd Circuit, and the 2nd Circuit has recently ruled against the position Shea is litigating: Shea can appeal the United Court of Federal Claims (USCFC) and refer the matter to the United States Federal Circuit Jury.
2. The Federal Circuit Court of Appeals has recently ruled in favor of Shea’s position: Shea can continue the case in the USCFC itself.
3. The issue being litigated involves a question of fact. Shea has a very appealing story to tell but little favorable case law to support her position: Shea can approach the United States District Courts since the case involves question of facts and no law is in much favour of her.
4. The issue being litigated is highly technical, and Shea believes strongly in her interpretation of the law: Highly technical, hence it would require the experts to address the case. Since issue is involving interpretation of law (ie more than single understanding), Shea can dispute the case in the Tax Courts itself.
5. Shea is a local elected official and would prefer to minimize any local publicity regarding the case: Generally, cases dealt by the district courts are more probable of becoming public than those dealt in Tax courts. Hence, Shea should prefer disputing her case in the USCFC or the Tax court