Tax Court Finds Clarifies its Jurisdiction Over Whistleblowers – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on October 24, 2012

“Whistleblowers got a strong dose of reality when the Tax Court recently clarified its jurisdiction over them,” stated Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner. Cohen v. Commissioner of Internal Revenue, 139 T.C. No. 12 (2012).

Cohen, a CPA, became a whistleblower to the Internal Revenue Service after learning that an estate was not reporting dividend and interest income on uncashed dividend checks and unredeemed bonds. After an investigation by the Whistleblower Office, Cohen was informed he was not eligible for an award because no proceeds were collected from the estate. Cohen filed a petition with the Tax Court requesting the IRS to reopen his whistleblower claim.

Whistleblowers are entitled to an award if the IRS proceeds with any administrative or judicial action based on information an individual brings to the IRS’s attention. While the Tax Court has jurisdiction to review any award determination the IRS makes, it has no jurisdiction when the IRS does not initiate an administrative or judicial action and collect proceeds. IRC Sec.7623(b)(4). Further, the IRS is not obligated to explain why it denied a whistleblower claim.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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