Recent Tax Court Whistleblower Case and the Administrative Record

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Matthew L. Roberts

Matthew L. Roberts

Principal

469.998.8482
mroberts@freemanlaw.com

Mr. Roberts is a Principal of the firm. He devotes a substantial portion of his legal practice to helping his clients successfully navigate and resolve their federal tax disputes, either administratively, or, if necessary, through litigation. As a trusted advisor he has provided legal advice and counsel to hundreds of clients, including individuals and entrepreneurs, non-profits, trusts and estates, partnerships, and corporations.

Having served nearly three years as an attorney-advisor to the Chief Judge of the United States Tax Court in Washington, D.C., Mr. Roberts leverages his unique insight into government processes to offer his clients creative, innovative, and cost-effective solutions to their tax problems. In private practice, he has successfully represented clients in all phases of a federal tax dispute, including IRS audits, appeals, litigation, and collection matters. He also has significant experience representing clients in employment tax audits, voluntary disclosures, FBAR penalties and litigation, trust fund penalties, penalty abatement and waiver requests, and criminal tax matters.

Often times, Mr. Roberts has been engaged to utilize his extensive knowledge of tax controversy matters to assist clients in their transactional matters. For example, he has provided tax advice to businesses on complex tax matters related to domestic and international transactions, formations, acquisitions, dispositions, mergers, spin-offs, liquidations, and partnership divisions.

In addition to federal tax disputes, Mr. Roberts has represented clients in matters relating to white-collar crimes, estate and probate disputes, fiduciary disputes, complex contractual and settlement disputes, business disparagement and defamation claims, and other complex civil litigation matters.

Recent Tax Court Whistleblower Case and the Administrative Record

Van Bemmelen v. Comm’r, 155 T.C. No. 4 | August 27, 2020 | Thornton, J. | Dkt. No. 19787-18W

Short SummaryOn March 12, 2018, Dr. Van Bemmelen’s attorney submitted to the IRS Whistleblower Office (WO) a completed Form 211, Application for Award for Original Information.  The IRS reviewed the claim and determined that the allegations were “not specific, credible or . . . [were] speculative[.]”  Accordingly, the IRS issued a letter entitled “FINAL DECISION UNDER SECTION 7623(a)” which denied any award to Dr. Van Bemmelen.

Dr. Van Bemmelen timely filed a petition with the Tax Court in response to the IRS’ determinations in the letter.  The IRS filed a motion for summary judgment, which was opposed by Dr. Van Bemmelen.  Later, Dr. Van Bemmelen filed a motion to supplement the record, in addition to a first supplement to motion to supplement the record, requesting that the administrative record be supplemented with two items that were not included in the materials the IRS certified as the administrative record:  a 2012 document and a 2019 docuement.  The IRS filed an opposition to the motions.

Key Issue:  Whether:  (1) the administrative record should be supplemented; and (2) the IRS’ motion for summary judgment should be granted.

Primary Holdings

Key Points of Law:

InsightThe Van Bemmelen decision shows the significance of ensuring the administrative record is complete and also the hardship tax whistleblowers have in receiving an award where the IRS refuses to act on the whistleblower information.

Representation in Tax Audits & Appeals

If you need assistance in managing the audit process, Freeman Law can help taxpayers navigate state tax laws.  We offer value-driven services and provide practical solutions to complex issues. Schedule a consultation or call (214) 984-3410 to discuss our tax representation services.

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