Ted lives in San Francisco, which is in the 9th circuit. He is litigating a case in the Tax Court that involves the issue of whether a particular item can be excluded from his income for tax purposes. In several earlier Tax Court cases the court ruled that this type of item is not excludable. Two taxpayers appealed the decision of the Tax Court. On appeal the 7th Circuit affirmed the Tax Court decision in one of the cases, but in the other case the 9th Circuit reversed and held that the item is excluded from gross income.