The U.S. Supreme Court ruled 8-1 that the U.S. Tax Court lacks jurisdiction to hear cases when the Internal Revenue Service (IRS) drops its request for a tax levy that initiated the dispute. The case involved a New Jersey woman, Zuch, whose tax levy was challenged after the IRS applied a tax refund from a different year to her outstanding debt. The Court held that once the IRS ceases to pursue the levy, the Tax Court proceedings become moot, leading to dismissal of the case. Justice Neil Gorsuch dissented, warning that the majority's interpretation could make it prohibitively expensive for taxpayers to challenge enforcement actions. Legal experts have noted concerns that this ruling may limit taxpayers' ability to contest IRS collection efforts effectively. The decision reverses an earlier IRS loss and affirms the agency's maneuver to drop tax disputes without Tax Court review.