IRS Move ‘Unilaterally’ Circumvented Tax Court Case, SCOTUS Told

The US Tax Court should retain jurisdiction to hear a taxpayer’s dispute even if the IRS “unilaterally” uses a tax refund from one year to cancel her debt from another year and moot an ongoing case, the taxpayer told the US Supreme Court.

Jennifer Zuch told the high court she was denied the right to a notice and administrative hearing before the IRS seized her property—a tax refund—and applied it to taxes from a different year.

The IRS’ “abusive practices” shouldn’t terminate a live dispute before the Tax Court, Zuch said in her March 17 high court brief. The way ...