The court ultimately issues an opinion containing findings of fact and conclusions of law. If the decision requires recalculation of the tax liability, the parties submit computational schedules (such as Rule 155 computations in the Tax Court).
Appeals follow the forum of the original case: Tax Court and District Court decisions are appealed to the relevant regional Court of Appeals, while decisions of the Court of Federal Claims are appealed to the Court of Appeals for the Federal Circuit.
In international cases, appellate courts typically review treaty interpretation as a legal question, while factual determinations—such as transfer pricing findings—receive more deferential review.
Even after a court decision, taxpayers may still pursue relief through the treaty Mutual Agreement Procedure, depending on the relevant treaty provisions and the practices of the treaty partner.
Next, let’s understand the judges and decision-making structure in international tax litigation. Different federal courts handle international tax disputes, and each forum has judges with different roles, experience, jurisdiction, and procedural authority. These differences may affect how tax disputes are heard, decided, and appealed.