Case: Award of Only 22% of Collected Proceeds From Whistleblower Office Was Abuse of Discretion (D.C. Cir.) (IRC §7623)

An award by the IRS Whistleblower Office (WBO) of only 22% of collected proceeds to a whistleblower was an abuse of discretion, the U.S. Court of Appeals for the District of Columbia Circuit held, vacating the U.S. Tax Court’s decision affirming the award and remanding for further proceedings. Appellant, a former employee at an investment banking firm, provided information to the IRS about tax avoidance schemes developed by several Wall Street firms. The IRS recovered hundreds of millions of dollars in unpaid taxes based on Appellant’s information. The WBO awarded Appellant 30% of proceeds recovered from four firms, but only ...