William Prentice Cooper, III v. Commissioner, 136 T.C. No. 30

Cooper filed two Form 211 whistleblower claims in 2008 with the IRS regarding alleged estate and generation-skipping tax underpayments related to Ms. Eweson’s estate and trusts.
Whistleblower Office notified Cooper that the information would be used to determine whether to investigate, and that he would be informed at conclusion whether an award would be paid.
IRS ultimately concluded that no administrative or judicial action would be taken against the taxpayer, and the Whistleblower Office sent letters denying awards for both claims.
Cooper filed two petitions in the Tax Court seeking review of the denials, after which respondent moved for summary judgment.
The Court previously held that the Whistleblower Office letters constitute award-determination notices, but the current issue is whether the Court may predetermine tax liability or reopen investigation.
A whistleblower award requires both initiation of an administrative or judicial action and a subsequent collection of tax proceeds; here no proceeds were collected.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the Court has jurisdiction to predetermine tax liability in a whistleblower case.	Cooper argues for a broader review of facts to detect underpayments.	Cooper contends the Court can open investigation and reopen case for underpayments.	No; Court lacks jurisdiction to predetermine tax liability.
Whether Cooper is entitled to a whistleblower award under 7623(b).	Award should follow from information leading to collection of proceeds.	No award since no administrative or judicial action or collection occurred.	No award; threshold requirements not met.
Whether the Secretary’s processing of whistleblower claims warrants summary judgment against Cooper.	Respondent did not properly investigate or apply the law to the merits.	Whistleblower awards require action and collection, which did not occur; summary judgment appropriate.	Summary judgment granted to respondent.

Cooper v. Commissioner, 135 T.C. 70 (2010) (recognizes whistleblower award eligibility hinges on action and collection)
Elec. Arts, Inc. v. Commissioner, 118 T.C. 226 (2002) (summary judgment standards in Tax Court)
FPL Group, Inc. & Subs. v. Commissioner, 116 T.C. 73 (2001) (summary judgment framework and expedited resolution)
Rauenhorst v. Commissioner, 119 T.C. 157 (2002) (burden on moving party in summary adjudication)
Associated Press v. United States, 326 U.S. 1 (1945) (summary judgment principles and need for no genuine issues)