Critical questions on the way to court in tax controversy matters

In the latest installment of “A Pinch of SALT” published in Tax Notes State, Eversheds Sutherland attorneys Tim Gustafson, Chelsea Marmor and Emma Shokeir examine the administrative process that precedes state tax litigation and the key considerations that can shape a taxpayer's path to court. The authors explain that state tax controversies often involve lengthy administrative proceedings and that understanding a state's procedures can affect the timing, cost, and strategy of a case.

The article highlights four critical questions taxpayers should ask before litigating a state tax matter:

• Is there discovery?
• Is a record set?
• What is the standard of review at court?
• Have administrative remedies been exhausted? 

As the authors conclude, "tax litigation begins long before ever approaching the courthouse steps." Understanding how administrative procedures differ across jurisdictions can help taxpayers make informed decisions and better position themselves for success if a dispute ultimately reaches court.

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