Taxpayers are generally limited in their options for contesting state and local tax matters. The statutes imposing income, corporate, sales and property taxes prescribe the steps to be taken and the forum for challenging those taxes. The doctrine of ‘exhaustion of administrative remedies’ requires taxpayers to go through the administrative procedures before being able to go to court to adjudicate their protests. This year, the U.S. Court of Appeals for the Seventh Circuit opened the door to federal challenges to state taxes when a taxpayer is precluded from making constitutional claims under the state’s tax adjudication process.

Read the full GT Alert, “Federal Challenges to State Taxes.”