Neil R. Clement & Meredith M. Clement, Docket No. 22590-18, filed 11/17/25, take a double hit, as IRS hauls back the Section 31 wage withholding they claim for year at issue to offset an outyear’s unpaid liability, leaving them with an enhanced deficiency.  And even if they could apply to year at issue the Section 31 wage withholding, the Section 6211(b)(1) computation of a deficiency specifically excludes any Section 31 credit. 

Anyway, Section 6512(b)(4) ousts Tax Court of jurisdiction over IRS haulbacks of overpayments.

Hence Ch j Patrick J. (“Scholar Pat”) Urda leaves Neil & Meredith high and dry for the outyear but awash for year at issue: enhanced deficiency and no Section 31 credit.

IRS, however, fumbles in the backfield when they fail to plead, whether in answer or amendment, proper disallowance of a mortgage insurance premium deduction. IRS conceded a reduction in the deficiency, but that led to an arithmetic jumble that Ch J Scholar Pat can only state is “less than meets the eye,” a rounding error. Neil & Meredith prevail on the deduction. See Order, at p. 4, footnote 4.