Taxpayer Standing Law and Legal Definition

Taxpayer standing refers to the locus standi or standing of a taxpayer to file a lawsuit against the taxing body for allocating the funds in an improper way. The U.S. Supreme court in Flast v. Cohen, 392 U.S. 83 (U.S. 1968), has ruled that taxpayer standing cannot be taken as a sufficient basis to file a suit against the U.S. government. A taxpayer has to prove that the taxing body has violated the Establishment clause found in the first amendment of the constitution. Later, in DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (U.S. 2006), the court stated that the taxpayer standing can be applied to state governments. Nevertheless, states have discretion to determine for allowing or denying a taxpayer standing.