34.2.1 Jurisdiction of the Court Of Federal Claims

Suits for a Refund of Tax/Counterclaims

  1. Taxpayers may challenge the validity of the Service’s tax determination by paying the disputed tax and commencing a suit for a refund. Section 7422; 28 U.S.C. § 1491. In order to invoke the court’s jurisdiction, a taxpayer must first have filed an administrative claim for refund or credit which was denied or deemed denied under applicable regulations. Section 7422(a). See CCDM regarding counterclaims.

  2. Under the Tax Equity and Fiscal Responsibility Act (TEFRA), a tax matters partner, or, if the tax matters partner fails to do so, certain other partners, may file a petition for readjustment of a partnership item. Section 6226. A tax matters partner or another partner may also petition the court if the Service denies any part of an administrative adjustment request. Section 6228.

  3. A suit in the Court of Federal Claims must seek money damages.

  4. Appeals from decisions of the Court of Federal Claims are to the Court of Appeals for the Federal Circuit.

Declaratory Judgments Relating to Status and Classification of Organizations under Section 501(c)(3)

  1. The Court of Federal Claims has jurisdiction to make a declaration with respect to the Service’s determination, or failure to make a timely determination, of an organization’s initial qualification or continuing qualification under section 501(c)(3) or with respect to its classification as a private foundation. Section 7428; 28 U.S.C. § 1507.