When a tax dispute arises, it can feel overwhelming to figure out who exactly is involved. Federal tax controversies are not handled by a single office or court — several government entities share responsibility. Each plays a distinct role in making, interpreting, enforcing, and litigating tax law.

Congress

Congress writes the Internal Revenue Code. It enacts the statutes that set out what income is taxable, which deductions and credits are available, and the rates at which tax is imposed. Every tax rule starts with legislation.

Treasury Department

The Treasury Department issues regulations that interpret and implement the Code. These regulations provide detailed guidance on how statutory provisions apply in practice. Regulations carry significant legal weight and are often central in disputes.

Internal Revenue Service (IRS)

The IRS is the administrative agency charged with enforcing the Code. It issues tax forms, processes returns, conducts audits, collects taxes, and attempts to resolve disputes at the administrative level. The IRS is the primary point of contact for taxpayers and the central player in most controversies.

Joint Committee on Taxation

This congressional committee has a specific oversight role: it must approve refunds exceeding $2 million before they can be issued. While not directly involved in day-to-day disputes, the committee provides an additional layer of accountability for very large refund claims.

Department of Justice (DOJ)

When tax cases move to federal court (other than the U.S. Tax Court), the DOJ represents the government. DOJ attorneys handle both civil and criminal tax litigation in U.S. District Courts and the U.S. Court of Federal Claims.

The Courts

Several courts provide judicial resolution of tax controversies, each with distinct rules:

• U.S. Tax Court. A specialized national court where taxpayers may challenge a deficiency without first paying the tax. IRS Chief Counsel attorneys represent the Commissioner here.
• U.S. District Courts. General federal trial courts. Taxpayers must pay first and sue for a refund. These courts allow jury trials.
• U.S. Court of Federal Claims. Located in Washington, D.C. Like district courts, refund suits require payment first, but no jury trials are available.
• U.S. Courts of Appeals. Review decisions of the Tax Court, district courts, and the Court of Federal Claims.
• U.S. Supreme Court. The final arbiter of tax law, though it hears relatively few tax cases.

Why This Matters

Understanding which entity is responsible at each stage of a tax controversy helps taxpayers and their advisors make informed decisions. A dispute may begin with an IRS audit, move to Appeals, and then proceed into litigation in Tax Court or a refund forum. At higher levels, appellate courts and even the Supreme Court may weigh in. Knowing the role of each player ensures taxpayers preserve their rights and navigate the process strategically.