Dolores J. Russell v. Commissioner of Internal Revenue

Appellant Russell seeks relief from the harsh effects of a misunderstanding about the procedural rules allocating jurisdiction between the Tax Court and the district courts. The trouble stems from Russell’s failure to argue the merits of a refund claim in a Tax Court deficiency contest because she mistakenly believed that it could be pursued in a previously filed district court action. The district court case was reversed on appeal by this court due to lack of jurisdiction. Russell v. United States, 592 F.2d 1069 (9th Cir.), cert. denied, 444 U.S. 946 , 100 S.Ct. 308 , 62 L.Ed.2d 315 (1979). The Tax Court now refuses to allow her to pursue the issue there.

We affirm in part and reverse in part. The Tax Court properly denied leave to file a motion to vacate its earlier decision, but erred in ignoring Russell’s motion for calendaring of her refund claim which it had never adjudicated.

PROCEDURAL HISTORY

This appeal arises from the pitfalls for the unwary created by the jurisdictional rules governing refund suits and tax deficiency contests in the district and tax courts. Russell has diligently pursued her refund claim through nine years of litigation but has not yet received a…