139 T.C. No. 12
Tax Ct.2012Background
- Petitioner Raymond Cohen, pro se, challenges Respondent IRS's denial of a whistleblower award under I.R.C. § 7623(b).
- Cohen provided information he believed would trigger an administrative or judicial action and potential proceeds but none were pursued or collected.
- Cohen filed Form 211 seeking an award; the Whistleblower Office denied eligibility because no proceeds were collected.
- Cohen sought an order to reopen his whistleblower claim; Respondent moved to dismiss for failure to state a claim and Cohen moved for summary judgment.
- This Tax Court case concerns whether the Court may order reopening or provide relief under § 7623(b) when no action is initiated and no proceeds are collected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is relief available under § 7623(b) when no action is initiated or proceeds collected? | Cohen argues the Commissioner abused discretion and must reopen the claim. | Respondent contends § 7623(b) grants relief only after an action is started and proceeds collected. | No relief available; petition dismissed. |
| Can the court provide any relief under § 7623(b) before prerequisites are met? | Cohen seeks outcome-based relief despite lack of action/proceeds. | Relief preconditions not satisfied; no jurisdiction to rehear or compel action. | Relief not available; dismissal affirmed. |
| Does the Administrative Procedure Act create a right of action or expand jurisdiction here? | APA provides a basis for relief or review of denial. | APA does not create a right of action or expand jurisdiction in § 7623(b) cases. | APA does not provide relief; not applicable. |
| Is equitable relief available under § 7623(b)? | Equitable relief should be available to address denial. | Court is not a court of equity; § 7623(b) does not support preconditioned remedies. | Not available; no equitable relief. |
Key Cases Cited
- Cooper v. Commissioner, 135 T.C. 70 (2010) (limits jurisdiction to award determinations under § 7623(b))
- Cooper II, 136 T.C. 597 (2011) (no authority to compel actions by Commissioner under § 7623)
- Stovall v. Commissioner, 101 T.C. 140 (1993) (no equitable relief under § 7623)
- Commissioner v. McCoy, 484 U.S. 3 (1987) (limits equitable relief in tax whistleblower context)
- Anonymous v. Commissioner, 134 T.C. 13 (2010) (APA does not create right of action or expand jurisdiction here)
- Kasper v. Commissioner, 137 T.C. 37 (2011) (jurisdiction tied to § 7623(b) award determination)
- Whistleblower 14106-10W v. Commissioner, 137 T.C. 183 (2011) (award determination requires Commissioner's action and proceeds)