专员诉祖赫案

In 2012, Jennifer Zuch and her then-husband Patrick Gennardo filed late 2010 federal tax returns. Gennardo submitted an offer in compromise involving $50,000 in estimated tax payments, which the IRS applied to his account. Zuch later amended her return, reporting additional income and incurring $28,000 in taxes due. She argued the $50,000 should be credited to her account, entitling her to a refund, but the IRS disagreed and placed a levy on her property. Zuch requested a Collection Due Process hearing, which sustained the levy. She appealed to the Tax Court under §6330(d)(1). During the proceedings, Zuch filed tax returns showing overpayments; the IRS applied these to her 2010 liability, reducing it to zero. The IRS moved to dismiss as moot, and the Tax Court agreed. The Third Circuit vacated, but the Supreme Court reversed, holding the Tax Court lacks jurisdiction when the IRS is no longer pursuing a levy.

The Supreme Court held 8-1 that the Tax Court lacks jurisdiction under §6330 to resolve disputes between a taxpayer and the IRS when the IRS is no longer pursuing a levy. Justice Barrett delivered the majority opinion; Justice Gorsuch dissented. The Third Circuit's decision was reversed and remanded.

Whether the U.S. Tax Court retains jurisdiction under 26 U.S.C. §6330 to review a Collection Due Process determination once the IRS is no longer pursuing a levy because the taxpayer's liability has been satisfied.

The decision limits taxpayers' ability to obtain prepayment judicial review of tax liabilities in Tax Court once the IRS satisfies the debt through overpayment offsets. Justice Gorsuch warned the ruling allows the IRS to avoid accountability and may leave taxpayers without a forum to challenge agency errors. The ruling has been criticized for enabling the IRS to moot Tax Court proceedings by applying subsequent refunds to disputed liabilities, potentially forcing taxpayers into more burdensome refund suits.