This is a week for non-adjustments. First came Mark L. Nebeker; see my blogpost “I Don’t Want To Get Adjusted,” 8/16/16, Now comes Judge Tamara Ashford to wave off Allied Adjustment Services, Inc., Docket No. 23849-14L, filed 8/17/16, with a designated hitter.

Allied is fighting liens and a levy involving income and employment tax liabilities, which fight began four years ago. After successive NODs blowing off Allied’s CDPs and a remand with a Supplemental NOD, Allied, seeing the interest snowballing and cascading, pays up.

IRS says, “OK, dismiss as moot, we’ve got nothing to collect.”

Allied says, “we wuz robbed, and we want to fight, and we only paid up to save on the interest.”

Judge Ashford: “Given the limitations on our jurisdiction in lien and levy actions under section 6230(c) and 6330(d), the relief that we can provide to a petitioner in adjudicating such actions is limited, amounting to giving a ‘thumbs-up or thumbs-down’ on whether respondent may proceed with the collection action in question. If we find that the existence and amount of the underlying tax liability is correct and Appeals’ determination did not constitute an abuse of discretion, we may uphold the determination and sustain the collection action. If we find that the existence and amount of the underlying tax liability is incorrect or that Appeals’ determination constituted an abuse of discretion because of Appeals’ failure to consider relevant information or for some other reason, we may, as the Court did earlier in Docket No. 12037-13L, remand the case for further consideration by Appeals, or reject Appeals’ determination and overrule the collection action.

“As a result, if subsequent to the filing of a petition in this Court commencing a lien and levy action under section 6230(c) and 6330(d), respondent no longer intends to pursue collection of the outstanding tax liability by levy and has released the applicable lien, then there is no further relief that we are able to grant under sections 6320 and 6330 and the case must be dismissed as moot, even if the petitioner maintains some dispute regarding the propriety of the liability.” Order, at pp. 5-6.

So after four years. Allied can file for a refund and sue in USDC or USCFC. If they can afford it.

Great result…yeah, right.