Tax court, United States, Is a federal court that and les disputes involving income, estate, gift, and other taxes. Taxpayers who cannot reach an agreement with the Internal Revenue Service may file a petition with the U.S. Tax Court. The court has offices in Washington, D.C., but it holds sessions at locations throughout the country for the convenience of taxpayers.

Taxpayers may choose to take a case involving $10,000 or less to the court’s Small Tax Division. This division provides simplified procedures for handling cases, and its decisions are final. All other Tax Court rulings may be appealed to the U.S. Court of Appeals and then to the Supreme Court of the Unites States.

The Tax Court was established in 1924 as the U.S. Board of Tax Appears. It received its present name in 1969.

Taxation is a system of raising money to finance government services and activities. Governments at all levels-local, state, and national-require people and businesses to pay Taxes. Governments use the tax revenue to pay the cost of police and fire protection health programs, schools, roads, national defense, and many other public services.

Taxes are as old as government. The general level of taxes has varied through the years, depending on the role of the government. In modern times, many governments-especially in advance industrial countries—have rapidly expanded their roles and taken on new responsibilities. As a result, their need for tax revenue has become great.

Through the years, people have frequently protested against tax increase. In these situations, taxpayers have favored keeping services at current levels or reducing them. Voters have defeated many proposals for tax increases by state and local Governments.

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