Stages of Proceedings in U.S. International Tax Litigation outlines the sequential phases through which international tax disputes progress in U.S. courts.
U.S. international tax litigation generally proceeds through three stages:
These stages apply across the three principal forums: the United States Tax Court, the United States Court of Federal Claims, and the United States District Courts. However, the procedural rules and scope of discovery differ among them.
International tax disputes typically involve interpreting tax treaties, evaluating transfer pricing positions and supporting documentation, applying foreign law, and obtaining or presenting evidence located outside the United States.
Next, let’s understand the first stage of international tax litigation: the pre-trial phase. The pre-trial phase is important as parties exchange information through discovery and narrow the issues through pre-trial motions before trial.
Let’s dive into the pre-trial phase in the next section.