Tax Court in Brief | Whistleblower 769-16W v. Comm’r | Can the Tax Court divest itself of jurisdiction over a whistleblower proceeding?

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The Tax Court in Brief – August 1st – August 5th, 2022

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation:  The Week of August 1st, 2022, through August 5th, 2022

Whistleblower 769-16W v. Comm’r, 159 T.C. No. 2 | August 4, 2022 | Toro, J. | Dkt. No. 769-16W

Short Summary: This is a limited- but novel-issue opinion. Petitioner and the IRS submitted a Joint Motion to Remand asking the Tax Court to enter an order and decision vacating prior determinations of the Whistleblower Office (WBO) and remanding the claims to the WBO for further consideration without retaining jurisdiction. The case began in 2016 and, over the years, required the Tax Court to confront novel issues concerning the application of section 7623(b), some of which were remanded to the WBO for further proceeding. In this situation, the parties jointly moved for another remand, to (1) permit the WBO to evaluate the contribution of the whistleblower’s information to any ongoing IRS action against certain targets and (2) without the Tax Court retaining jurisdiction.

Key Issue:

Primary Holding:

Key Points of Law:

Insight: This opinion likely has limited application. But, where the whistleblower and the IRS jointly agree to vacate orders and divest the Tax Court of jurisdiction over matters remanded to the WBO to allow for further proceeding, nothing in the Code prohibits that jurisdictional divestment.