Federal Court Subject Matter Jurisdiction

August 13, 2013, the Magistrate Judge determined that the State of Wisconsin can adjust a taxpayer's reported income on Wisconsin Income Tax Form 1 (1); the federal adjusted gross income taken from Federal Income Tax Form 1040 without giving the taxpayer notice or an opportunity to be heard on the adjustment made by the state taxing agency.

The reasoning is that the Taxpayer Bill of Rights is federal law and the Fifth and Fourteenth Amendments to the U.S. Constitutional do not apply in state tax cases, therefore the federal court does not have subject matter jurisdiction.