Legal Definitions - AOD

AOD stands for Action on Decision.

An Action on Decision (AOD) is a formal statement issued by a government agency, typically the Solicitor General or a delegated authority, indicating how the agency will respond to an adverse court decision. This statement clarifies whether the government will appeal the ruling or acquiesce to it. If the agency acquiesces, it means they will follow the court's precedent in similar future cases, at least within that specific jurisdiction. If they issue a statement of non-acquiescence, it signifies that they disagree with the court's ruling and will continue to litigate similar issues, potentially seeking an appeal or waiting for a different court to rule differently.

• Example 1: Tax Law

  A federal appeals court rules in favor of a small business, determining that certain research and development expenses can be immediately deducted rather than capitalized over several years. This decision contradicts the Internal Revenue Service's (IRS) long-standing interpretation of the tax code.

  The IRS must then issue an Action on Decision. If the IRS issues an AOD of acquiescence, it means they accept this court's ruling and will apply it to other taxpayers in that circuit facing similar circumstances, even if they disagree with the underlying legal reasoning. Conversely, if the IRS issues an AOD of non-acquiescence, it signals that they disagree with the court's decision and will continue to challenge similar cases in other circuits or potentially seek a Supreme Court review, indicating they will not follow this precedent outside of the specific case.

• Example 2: Social Security Disability Benefits

  A federal district court rules that the Social Security Administration (SSA) incorrectly applied a specific vocational guideline when denying disability benefits to a claimant, finding the guideline too rigid for the claimant's unique medical and work history.

  The SSA's Office of the General Counsel will then issue an Action on Decision. If the SSA issues an AOD of acquiescence, it indicates that the agency will adjust its internal procedures or interpretations to align with this court's finding for similar cases within that district's jurisdiction. If the SSA issues an AOD of non-acquiescence, it means the agency believes the court erred and will continue to apply its original interpretation in other cases, potentially appealing the decision or waiting for a different court to rule in its favor on the same issue.