IRS Warns Justices Circuit Split Will ‘Transform’ Tax Levy Cases

The US Supreme Court should review whether the US Tax Court has jurisdiction to resolve a disputed liability even if there remains no unpaid tax or proposed levy in a case, the IRS said.

The US Court of Appeals for the Third Circuit’s decision to revive Jennifer Zuch’s levy redetermination suit should be reversed because it lacks a statutory basis in IRC Section 6330, which grants taxpayers the right to a predeprivation levy hearing before the IRS and right of review before the Tax Court, the IRS said in its petition, docketed Tuesday.

If allowed to stand, that ...