In terms of procedure, before a taxpayer may file a claim for a tax refund in a federal district court or a federal claims court he or she must
A)Hire a tax lawyer.
B)Exhaust the IRS's administrative remedies.
C)Avoid an IRS Appeals Conference.
D)Settle with the local IRS office.

Question

Quizplus · Accepted Answer

Before filing a claim for a tax refund in a federal district court or a federal claims court, the taxpayer must exhaust the IRS's administrative remedies, which means they must have gone through the appropriate channels within the IRS to resolve the issue before seeking legal action. This typically involves filing a claim for refund with the IRS and waiting for a response before considering other options. Hiring a tax lawyer, avoiding an IRS Appeals Conference, or settling with the local IRS office may not be necessary or applicable in all cases, but exhausting administrative remedies is a required step in the process.

In Terms of Procedure, Before a Taxpayer May File a Claim