Commissioner v. Zuch

605 U.S. 422
CourtSupreme Court of the United States
DecidedJune 12, 2025
Docket24-416
StatusPublished

This text of 605 U.S. 422 (Commissioner v. Zuch) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commissioner v. Zuch, 605 U.S. 422 (2025).

Opinion

PRELIMINARY PRINT

Volume 605 U. S. Part 2 Pages 422–442

OFFICIAL REPORTS OF

THE SUPREME COURT June 12, 2025

REBECCA A. WOMELDORF reporter of decisions

NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors. 422 OCTOBER TERM, 2024

Syllabus

COMMISSIONER OF INTERNAL REVENUE v. ZUCH

certiorari to the united states court of appeals for the third circuit No. 24–416. Argued April 22, 2025—Decided June 12, 2025 This case involves the jurisdiction of the United States Tax Court over appeals from collection due process hearings when there is no longer an ongoing levy. The dispute here began in 2012, when Jennifer Zuch and her then-husband Patrick Gennardo each fled an untimely 2010 federal tax return. Gennardo subsequently submitted an offer in compromise to resolve outstanding tax liabilities. This offer implicated $50,000 in estimated tax payments that the couple had previously sent to the IRS; following the offer, the IRS applied these payments to Gennardo's ac- count. For her part, Zuch later amended her 2010 tax return to report additional income, which resulted in an additional $28,000 in taxes due. But Zuch maintained that the IRS should have credited the couple's $50,000 payment to her account, entitling her to a $22,000 refund. The IRS disagreed and sought to collect her unpaid taxes by placing a levy on her property pursuant to its authority under 26 U. S. C. § 6331(a). Zuch requested a collection due process hearing to contest the levy. The appeals offcer rejected Zuch's argument about the misapplied $50,000 tax payment and issued a Notice of Determination sustaining the levy action under § 6330(c)(3). Zuch then appealed to the Tax Court under § 6330(d)(1). During the multi-year proceedings before the agency and the Tax Court that followed, Zuch fled several annual tax returns showing overpayments. Each time, the IRS applied these overpayments to her outstanding 2010 tax liability rather than issuing refunds. Once Zuch's liability reached zero, the IRS moved to dismiss the Tax Court proceeding as moot, arguing that the Tax Court lacked jurisdiction because the IRS no longer had a basis to levy on Zuch's property. The Tax Court agreed. But on appeal, the Third Circuit vacated the dismissal, holding that the IRS's abandonment of the levy did not moot the Tax Court proceedings. Held: 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. Pp. 428–432. (a) “The Tax Court is a court of limited jurisdiction.” Commissioner v. McCoy, 484 U. S. 3, 7 (per curiam). Section 6330(d)(1) grants the Tax Court jurisdiction to “review” an appeals offcer's “determination” in a collection due process hearing. The scope of the “determination” deter- Cite as: 605 U. S. 422 (2025) 423

mines what the Tax Court has jurisdiction to review. The Court agrees with the Government that “determination” refers to the binary decision whether a levy may proceed. Section 6330(c)(3) requires the appeals offcer to consider three things when making this “determination,” in- cluding “issues raised” by the taxpayer. The statute thus distinguishes between “consideration[s]” that inform the “determination” and the “de- termination” itself. Here, Zuch's dispute about estimated tax payments was an input into the “determination”—an “issu[e] raised” that the ap- peals offcer was required to consider under § 6330(c)(3)(B). The “deter- mination,” by contrast, was just the appeals offcer's decision to sustain the levy. Statutory context also supports the Government's position on the lim- ited scope of the Tax Court's jurisdiction under § 6330(d)(1). When a taxpayer wants to contest tax liability, the default rule requires taxpay- ers to frst pay the disputed tax before pursuing a challenge. § 7421(a). Had the IRS simply offset Zuch's overpayments without pursuing a levy, her only recourse would have been a refund suit in line with the default rule. The IRS's proposed levy triggered Zuch's right to a collection due process hearing under § 6330(a)(1), but § 6330—titled “Notice and opportunity for hearing before levy”—focuses just on the proposed levy. The hearing's scope tracks its purpose: taxpayers may raise only levy- related issues. See § 6330(c)(2)(A) (“any relevant issue relating to the unpaid tax or the proposed levy”); § 6330(c)(2)(B) (“challenges to the ex- istence or amount of the underlying tax liability” (emphasis added)). Given § 6330's unwavering focus on levies and the default rule requiring postpayment suits, it would be strange if a taxpayer could use a § 6330 appeal to resolve tax disputes that no longer have any connection to an ongoing levy. Finally, the Court doubts the Tax Court has authority under § 6330(e) to provide relief beyond enjoining a levy. Nothing in § 6330(e)(1) au- thorizes the Tax Court to order refunds or to issue declaratory judg- ments resolving tax liability disputes. While Zuch argues that author- ity to enjoin a levy necessarily includes the ability to declare the validity of underlying tax obligations, the Tax Court's authority to render such conclusions depends on the levy's existence. Pp. 428–431. (b) The Tax Court properly dismissed Zuch's appeal. The appeals offcer issued a “determination” that the IRS's proposed levy could pro- ceed. The Tax Court had jurisdiction to review that determination— to decide whether the levy could (or could not) go forward. As part of that review, the Tax Court initially had authority to determine whether the appeals offcer's predicate conclusions—like whether the $50,000 should have been credited exclusively to Gennardo—were correct. But once Zuch no longer owed unpaid taxes, there was no basis for a levy 424 COMMISSIONER v. ZUCH

Opinion of the Court

and thus no relevant “determination” to review. The Tax Court lacked jurisdiction to opine on disputed tax liability independent of any ongoing collection effort. Zuch's recourse for alleged tax overpayments is to fle a refund suit, see 28 U. S. C. §§ 1346(a)(1), 1491(a)(1), which she has already done. Pp. 431–432. 97 F. 4th 81, reversed and remanded.

Barrett, J., delivered the opinion of the Court, in which Roberts, C. J., and Thomas, Alito, Sotomayor, Kagan, Kavanaugh, and Jack- son, JJ., joined. Gorsuch, J., fled a dissenting opinion, post, p. 432.

Erica L. Ross argued the cause for petitioner. With her on the briefs were Solicitor General Sauer, Acting Solicitor General Harris, Deputy Assistant Attorney General Hub- bert, Deputy Solicitor General Gannon, Francesca Ugolini, Jennifer M. Rubin, and Julie Ciamporcero Avetta. Shay Dvoretzky argued the cause for respondent. With him on the brief were Parker Rider-Longmaid, Armando Gomez, Sylvia O. Tsakos, Hanaa Khan, Raza Rasheed, and Frank Agostino.*

Justice Barrett delivered the opinion of the Court. The Tax Code authorizes the Internal Revenue Service to levy on—in other words, to seize and sell—a taxpayer's property to collect unpaid taxes. 26 U. S. C. § 6331(a).

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Commissioner v. Zuch
605 U.S. 422 (Supreme Court, 2025)

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