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