CHAPTER FOUR
JUDICIAL
INTERPRETATIONS
EXPECTED LEARNING
OUTCOMES

Understand the following about
judicial interpretations:
•
•
•
•
•
•
The different types of tax cases
Their level of authority
How they are located
How to examine them
How to determine their validity
How they are cited
TYPES OF JUDICIAL
INTERPRETATIONS
Tax Court
Circuit Court
of Appeals
District Court
U.S. Court of
Federal Claims
Federal Circuit
U.S. Court
of
Appeals
Supreme
Court
Judicial Sources - Primary
Sources

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Findings have precedential value
Trial courts - Tax Court (do not pay the
deficiency), District Court, U.S. Court of
Federal Claims (pay first, sue for refund),
Small Cases Division
Reg. Tax Law Cases v. Memo Decisions
Appeals - Regional Circuit, Federal uphold,
modify, reverse, vacate and remand
U.S. Supreme Court– certiorari needed
All courts must follow SC decisions, not
the case for circuits
THE AUTHORITY OF
JUDICIAL INTERPRETATIONS


Doctrine of precedential
authority or stare decisis
The Golsen Rule: follow
appellate court rulings for
appropriate district.
Factors to Consider in
Determining Authority

Level of authority: which court issued
decision

Jurisdiction of the court

Factual similarity

Code Section at issue: has code changed?

Logic of analysis
Structure of a Case

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Case title
Housekeeping notations
Attorneys involved
Description of the facts
Identification of the key
issues
Court’s opinion: focus here on
reasoning and holding
Briefing a Case
Case name and cite
 Case facts
 Issue before the court
 Court’s conclusion
 Court’s reasoning
 Go Over Common Terms: pg.
193-194

How to Access
Case Law

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Online reference Service /
Secondary Sources /
Official Reporters
See List on Page 198-199
Unofficial Reporters
• United States Tax Cases (CCH)
• American Federal Tax Reporter
(RIA)
Citing Cases

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Case name, use of Id. And
Supra
Volume of reporter
Abbreviation of reporter
name
Page/paragraph when case
begins – chart on 201-203
Court and year of decision
Citing a Tax Court Case

Regular Decision
• Lucky Duck, 80 TC 100 (1999)

Memo Decision
• Lucky Duck, 75 TCM 200 (1999)
• Lucky Duck, 1999 RIA Memo TC
¶99,500 (1999)
Citing a Non-Tax
Court Case

USTC
• Duck v. Commissioner, 99-1 USTC
100 (CA 7)

AFTR
• Duck v. Commissioner, 75 AFTR992000 (1999)
Sources of Case Texts

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Print/Paper
CD-ROM
Modem
Web
Confirming the
Reliability of a Case


Danger of being reversed or
overruled
The Citator
• Organized by taxpayers last name.
• List in alphabetical order
• Same name may have three courts
that heard cases

Examples on Page 210-211.