CCH Tax Day Report
The Tax Court had jurisdiction over an informer’s petition alleging that the IRS improperly reduced his whistleblower award to reflect the sequester imposed by the Budget Control Act of 2011. In an apparent case of first impression, the court concluded that the IRS made a determination of his award when it issued his award check, and not when he signed or the IRS received his acceptance of the proposed award. Since he filed his petition within 30 days of the date the check was mailed to him, his petition was timely.
However, the court could not increase his award because the form on which he accepted the proposed award included an explicit waiver of his appeal rights. He voluntarily signed the waiver, the parties did not make a mutual mistake as to the amount of the proposed award, and the IRS did not breach the award contract when it withheld federal income tax from the reduced award.
Whistleblower 4496-15w, 148 TC —, No. 19, Dec. 60,909
Code Sec. 7623
CCH Reference – 2017FED ¶42,957.12
CCH Reference – 2017FED ¶42,957.40
Tax Research Consultant
CCH Reference – TRC IRS: 63,060.05