Key Takeaways Tax Court is the only forum where you can challenge a tax deficiency without first paying the disputed amount U.S. District Court and the Court of Federal Claims require you to pay the tax first, then sue for a refund Only U.S. District Court offers the right to a jury trial in tax cases Each forum follows different precedent, which can affect the outcome of your case Strategic forum selection is a critical decision that should involve experienced tax litigation counsel Three Forums for Tax Disputes When your tax dispute reaches the point of litigation, federal law provides three possible forums where you can have your case heard. Each has distinct characteristics, procedural rules, and strategic implications. Understanding these differences is essential to choosing the forum most likely to produce a favorable outcome for your specific case. As part of our comprehensive IRS Appeals and Tax Court guide , this article provides detailed analysis to help you and your tax professional make an informed forum selection decision. 1. United States Tax Court The U.S. Tax Court is a specialized federal court that hears only tax cases. It was established by Congress specifically to provide taxpayers with a judicial forum for resolving tax disputes. Key characteristics include: Prepayment forum: You do not have to pay the disputed tax before filing. This is the Tax Court's most significant feature. Specialized judges: Tax Court judges are appointed specifically for their tax expertise. They hear tax cases exclusively and have deep knowledge of tax law. No jury: All Tax Court cases are decided by a judge (bench trial). There is no right to a jury trial. Jurisdiction: Tax Court has jurisdiction over income tax, estate tax, gift tax, and certain excise tax deficiency cases. The IRS must issue a notice of deficiency...