Tax Procedure: The Tax Court Clarifies its Scope and Standard of Review for Whistleblower Cases

whistleblower, false claimsOn January 9, 2018, the Tax Court issued an important decision on the scope and standard of review in whistleblower cases, ruling that the record rule (limiting review to the agency record) would apply and then delineating specific exceptions that may apply in whistleblower cases; the court also held that IRS whistleblower determinations would be reviewed for abuse of discretion. Kasper v. Comm’r, 150 T.C. No. 2, 2018 U.S. Tax Ct. LEXIS 2 (Jan. 9, 2018).

In 2006, section 7623 of the Internal Revenue Code was amended to make changes to the regime for whistleblower awards in tax cases. Prior to the amendments, the IRS had essentially unfettered discretion, as there was no mechanism for judicial review of awards.… Read More

A Fair Decision: IRS Refusal of Hardship Waiver for Rollover Contributions is Overturned

IRA RolloverA retired New York City policeman who missed the deadline to roll over retirement plan distributions into an IRA sought a hardship waiver and asked the IRS for “a fair decision” based on his personal difficulties. He received it from the Tax Court in a precedential opinion. Trimmer v. Comm’r, Docket No. 27238-14, 2017 U.S. Tax Ct. LEXIS 15 (Apr. 20, 2017).

Mr. Trimmer worked as a New York City police officer for twenty years until he retired in April of 2011. His wife worked as a school teacher. 2017 U.S. Tax Ct. LEXIS 15 at *3. Mr. Trimmer had planned to work as a security guard with the New York Stock Exchange after retirement, but that job was not offered to him.… Read More