Problem $2-20($LO$.1,2)$

Tom, an individual taxpayer, has been audited by the IRS and, as a result, has been assessed a substantial deficiency $($which has not yet been paid$)$ in additional income taxes. In preparing his defense, Tom considers the following possibilities:

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a$.$ Although a resident of Kentucky, Tom plans to sue in a U$.$S$.$ District Court in Oregon that appears to be more favorably inclined toward taxpayers.

Tom may sue in

$.$

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b$.$ Tom plans to take his case to a Kentucky state court where an uncle is the presiding judge. Can Tom have his tax case heard in state court?

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c$.$ Since Tom has found a B$.$T$.$A$.$ decision that seems to help his case, he plans to rely on it if he takes his case to the U$.$S$.$ District Court or the state court where his uncle presides.

Select "Yes" or $"$No$"$ whichever is applicable.

$1.$ The B$.$T$.$A$.$ will likely have little validity, regardless of which court Tom's case is heard in$.$

$2.$ The B$.$T$.$A$.$ will be effective if his case is heard in the U$.$S$.$ District Court; however, states do not have to follow any decisions cited in the B$.$T$.$A$.$

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d$.$ If he loses at the trial court level, Tom plans to appeal either to the U$.$S$.$ Court of Federal Claims or to the U$.$S$.$ Second Circuit Court of Appeals because he has relatives in both Washington, D$.$C$.,$ and New York. Staying with these relatives could save Tom lodging expense while his appeal is being heard by the court selected.

Select "Yes" or $"$No$"$ whichever is applicable.

$1.$ Tom cannot appeal from a U$.$S$.$ District Court to the U$.$S$.$ Court of Federal Claims.

$2.$ Tom can appeal from a U$.$S$.$ District Court to the U$.$S$.$ Court of Federal Claims.

$3.$ An appeal issuing from a case heard in U$.$S$.$ District Court would be to the Sixth Circuit Court of Appeals.

$4.$ An appeal issuing from a case heard in U$.$S$.$ District Court would be to the Second Circuit Court of Appeals.

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e$.$ Whether Tom wins at the trial court or appeals court level, he feels certain of success on an appeal to the U$.$S$.$ Supreme Court. The U$.$S$.$ Supreme Court

agree to hear a court case.

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