Transparency and Obfuscation in Tax Court Procedure

Abstract

The Internal Revenue Code permits the Chief Judge of the United States Tax Court to assign to Special Trial Judges cases that involve amounts in controversy over $50,000, but does not permit Special Trial Judges to enter the decision of the court in those cases. Instead, under Tax Court Rule 183, after conducting the trial in such a case, the Special Trial Judge must submit a report, including findings of fact and opinion, to the Chief Judge, and the Chief Judge will assign the case to a Judge or Division of the Court... Rule 183 further provides that due regard shall be given to the circumstance that the Special Trial Judge had the opportunity to evaluate the credibility of witnesses, and the findings of fact recommended by the Special Trial Judge shall be presumed to be correct. This article argues that the Special Trial Judge's report should be disclosed, at least to reviewing Courts of Appeals.

Keywords: Tax law, tax procedure, tax policy, court procedure

JEL Classification: K34, K41