Tax Court Can Review IRS Awards for Information Provided Before and After 7623(b)

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The United States Tax Court has jurisdiction to review IRS whistleblower awards issued involving information provided before and after the passage of the Tax Relief and Health Care Act of 2006. The tax whistleblower received a discretionary reward from the IRS under section 7623(a) and appealed the award determination. The decision is available at 144 TC 15 (Whistleblower 21276-13W v. IRS).

The individual provided information to the IRS between June 2006 and fall 2009. The effective date of I.R.C. sec. 7623(b), the IRS’ mandatory reward program for cases involving more than $2 million in dispute, was December 20, 2006. A Form 211 was filed in 2008 and then resubmitted in 2011 for an award under section 7623(b). The government had sought dismissal of the petitioner’s appeal.

The Commissioner of Internal Revenue sought dismissal on jurisdictional grounds, arguing that because information was provided prior to Dec. 20th, the whistleblower was not entitled to appeal the award to the tax court. The Court denied the motion to dismiss, holding that the Tax Court can review award determinations when there are allegations that the whistleblower provided information both before and after the enactment of section 7623(b).

If you have questions about this or another aspect of the IRS whistleblower program, feel free to contact one of our tax  whistleblower attorneys via our contact form or by calling 1-800-590-4116.  Our law firm offers a free, confidential initial legal consultation with a lawyer for whistleblowers.

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