Plain-English summary
Tax Court lacks jurisdiction under §6330 to decide disputes once IRS stops seeking the levy
The Court held that the Tax Court cannot hear a challenge under 26 U.S.C. §6330 once the IRS is no longer pursuing the levy that triggered the challenge. The judgment of the Third Circuit was reversed and the case remanded.
Why this matters
This decision limits the ability of taxpayers to obtain judicial review in the Tax Court of proposed IRS levies once the IRS has stopped pursuing the levy. It clarifies when §6330 jurisdiction exists and reduces the instances in which taxpayers can obtain a pre-deprivation review if the underlying IRS enforcement action is withdrawn or abandoned.
Who may feel it
- Individual taxpayers facing proposed IRS levies
- Tax practitioners and attorneys who represent taxpayers in Tax Court
- The IRS and its enforcement procedures
- Lower federal courts handling tax jurisdiction and procedure issues
Key questions
- Does a §6330 proceeding become moot when the IRS is no longer pursuing the proposed levy that prompted the proceeding?