Cecily Zamora
The U.S. Tax Court issues two categories of opinions: formally published dispositions and unpublished dispositions. The latter includes memorandum opinions, which are issued in regular cases where the law is settled or factually driven. While memorandum opinions can be cited as legal authority, they are not considered binding precedent. In other words, they do not establish new law or guidance on tax-related issues but reflect the application of existing law to the facts of a particular case.
| Characteristics | Values |
|---|---|
| Nature of cases | Memorandum Opinions are issued in regular cases that do not involve novel legal issues, where the law is settled or the result is factually driven. |
| Appealability | Memorandum Opinions can be appealed. |
| Citation as legal authority | Memorandum Opinions can be cited as legal authority. |
| Publication | Memorandum Opinions are not published by the Tax Court but are available on the court's website and reproduced by commercial publishers. |
| Precedential value | Memorandum Opinions are not precedential but carry some precedential value as they are often cited by litigants and the Tax Court does not regard these opinions lightly. |
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What You'll Learn
Memorandum Opinions are not precedential but carry weight
Tax Court Memorandum Opinions, also known as Memo Opinions or T.C. Memos, are issued in regular cases where the law is settled or factually driven. They are generally not considered precedential and do not involve novel legal issues. However, they can be cited as legal authority, and the decisions can be appealed. While Memorandum Opinions do not establish new laws or guidance, they reflect the application of existing laws to specific cases.
The distinction between Tax Court Opinions and Memorandum Opinions lies in their impact on future cases and the nature of the issues they address. Tax Court Opinions are considered binding precedents and carry more weight in shaping future tax-related issues. On the other hand, Memorandum Opinions are less likely to be cited as precedents but still hold some precedential value. They provide insights into how existing laws are applied and interpreted in specific contexts.
The U.S. Tax Court acknowledges that Memorandum Opinions should be given due consideration by taxpayers and tax professionals. Although Memorandum Opinions are not officially published by the Tax Court, they are available on the court's website and through commercial publishers. This accessibility allows litigants to cite them in their arguments, and their prevalence contributes to their influence.
The weight of a Memorandum Opinion is further enhanced by its frequency. With approximately 90% of all Tax Court opinions being Memorandum Opinions, they provide a substantial body of authority for taxpayers to draw upon. While Memorandum Opinions may not carry the same weight as Tax Court Opinions, they still play a significant role in shaping legal arguments and influencing the interpretation of tax-related issues.
In summary, while Memorandum Opinions are not precedential in the strict sense, they carry weight in the legal realm, particularly in tax-related matters. They serve as a valuable resource for taxpayers, tax professionals, and litigants seeking to understand the application and interpretation of existing laws in specific contexts. The accessibility and frequency of Memorandum Opinions contribute to their influence, making them a crucial aspect of the legal landscape surrounding tax issues.
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Memo opinions are available on the court's website
The U.S. Tax Court's website states that a Memorandum Opinion is typically issued in a regular case that does not involve a novel legal issue. It is usually issued when the law is settled or factually driven. A Memorandum Opinion can be cited as legal authority, and the decision can be appealed. However, it is not considered binding precedent.
Memorandum Opinions are published on the U.S. Tax Court's website. They can also be found in commercially published sets, such as Tax Court Memorandum Decisions by CCH and RIA. They are also available through online sources such as Bloomberg Law and Westlaw, which offer citations to the CCH reporter for memorandum decisions.
The U.S. Tax Court has stated that Memorandum Opinions carry some precedential value. As a result, taxpayers and tax professionals must give due consideration to relevant Memorandum Opinions. While Memorandum Opinions do not establish new laws or guidance, they reflect the application of existing laws to the facts of a particular case.
It is important to note that the Tax Court's jurisdiction includes the authority to redetermine deficiencies and overpayments in income, gift, or estate taxes, and certain excise taxes of private foundations and foundation managers. The Tax Court also has the power to make certain types of declaratory judgments, adjust partnership items, order abatement of interest, award administrative and litigation costs, redetermine worker classification, and review awards to whistleblowers.
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Tax Court Opinions are considered binding precedent
The US Tax Court is a "court of record" under Article I of the Constitution, and it is a specialised court that exclusively hears tax controversies. It has jurisdiction to redetermine deficiencies and overpayment in income, gift or estate taxes, and certain excise taxes of private foundations and foundation managers.
At the end of a case, the US Tax Court will render a decision in the form of a "Tax Court Opinion" or a "Memorandum Opinion". A Memorandum Opinion is issued in a regular case that does not involve a novel legal issue. It addresses cases where the law is settled or is factually driven. A Memorandum Opinion can be cited as legal authority, and the decision can be appealed. However, it is not considered binding precedent.
A Tax Court Opinion, on the other hand, is issued in a regular case when the Tax Court believes it involves a sufficiently important legal issue or principle. A Tax Court Opinion can be cited as legal authority, and the decision can be appealed. Tax Court Opinions are considered binding precedent, meaning they establish new law or new guidance on tax-related issues.
It is important to note that there are other types of opinions issued by the Tax Court, such as Summary Opinions and Bench Opinions, which have different precedential effects. Summary Opinions are issued in cases where the amount in dispute is less than $50,000, and they are not considered precedential. Bench Opinions are oral opinions issued by the judge during a trial session and are also not considered precedent.
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Summary opinions are issued in cases under $50,000
The U.S. Tax Court is a "court of record" pursuant to Article I of the Constitution, and it is a specialized court that exclusively hears tax controversies. The Tax Court has jurisdiction to redetermine deficiencies and overpayment in income, gift or estate taxes, and certain excise taxes of private foundations and foundation managers.
The Tax Court divides cases between those involving a tax liability under $50,000 for any one tax year and elects small tax case status, and those over $50,000. Cases under $50,000 are handled less formally, with relaxed rules of evidence, and they may be heard by the Special Trial Judges. These cases are heard in the Small Cases division of the Tax Court, and they result in Summary Opinions. Summary Opinions cannot be relied on as precedent, and the decision cannot be appealed.
Memorandum Opinions, on the other hand, are issued in regular cases where the law is settled or factually driven. They can be cited as legal authority, and the decision can be appealed. Memorandum Opinions are published on the U.S. Tax Court’s website, and they are also available in some commercially published sets, such as Tax Court Memorandum Decisions published by CCH and RIA. They are also published unofficially in two competing publications, both titled Tax Court Memorandum Decisions (T.C.M.), by RIA and CCH.
Tax Court Opinions are issued in regular cases when the Tax Court believes it involves a sufficiently important legal issue or principle. These can also be cited as legal authority, and the decision can be appealed. Tax Court Opinions are considered binding precedent, meaning they establish new law or new guidance on tax-related issues.
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Tax Court has 19 judges appointed by the president
The United States Tax Court is a "court of record" under Article I of the Constitution. It is a specialised court that exclusively hears tax controversies. The Tax Court has jurisdiction to redetermine deficiencies and overpayments in income, gift, or estate taxes, and certain excise taxes of private foundations and foundation managers.
The Tax Court has 19 judges, appointed by the President and confirmed by the Senate. The President may also remove Tax Court judges, after notice and opportunity for public hearing, for "inefficiency," "neglect of duty," or "malfeasance in office." Former judges whose terms have ended may become "senior judges", able to return and assist the court by hearing cases while serving on recall.
The Tax Court is unique in that it is physically located in Washington, D.C., but the judges travel to designated cities across the country to hear tax disputes. The judges are appointed for specific terms, which can vary in length. For example, President Obama appointed a judge in 2014 for a term ending in 2029, while President Trump appointed a judge in 2020 for a term ending in 2035.
In addition to the 19 active judges, there are also "special trial judges" who are appointed by the Chief Judge of the Tax Court. These special trial judges serve a similar function to United States magistrate judges in the district courts and may hear cases involving alleged deficiencies or overpayments of up to $50,000.
At the end of a case, the U.S. Tax Court renders a decision in the form of a Tax Court Opinion or a Memorandum Opinion. Both types of opinions can be cited as legal authority, but Tax Court Opinions are considered binding precedent, while Memorandum Opinions reflect the application of existing law to a particular case. Memorandum Opinions are issued in regular cases where the law is settled or factually driven, while Tax Court Opinions are issued when the court believes there is a sufficiently important legal issue or principle involved.
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Frequently asked questions
A Memorandum Opinion is issued in a regular case that does not involve a novel legal issue. It addresses cases where the law is settled or is factually driven.
Memorandum Opinions can be cited as legal authority and the decision can be appealed. However, they are not considered binding precedent.
A Tax Court Opinion is issued in a regular case when the Tax Court believes it involves a sufficiently important legal issue or principle. A Tax Court Opinion is considered binding precedent, meaning it establishes new law or new guidance on tax-related issues.
Tax Court Memorandum Opinions are not published by the Tax Court but are available on the court's website (for opinions released after 25 September 1995) and are reproduced by commercial publishers.
