Rowanda Could Not Settle Her Tax Dispute with the IRS

question 95

Multiple Choice

Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:

• A)U)S. District Court
• B)U)S. Circuit Court of Appeals
• C)U)S. Court of Federal Claims
• D)Tax Court
• E)None of the choices are correct.

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Definitions:

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.

Highly Progressive

A tax system in which tax rates increase significantly as income or wealth rises.

Federal Spending

Expenditures by the federal government, which can include spending on defense, social security, health care, and infrastructure, among others.

National Defense

Government actions, including militaristic measures, taken to defend a country from external threats and ensure national security.