IRS Slammed For Handling of Whistleblower Matters

Judge Maurice B. Foley, a U.S. Tax Court judge, slammed the IRS for its handling of the cases of two whistleblowers who were denied awards after submitting whistleblower claims against their employers.

The two whistleblowers, who remain anonymous, appealed the dismissal of their awards claims in November 2012.  At that time, the U.S. Tax Court granted the IRS’ motion for summary judgment, ruling against the whistleblowers appeal.  However, in February 2013, the IRS sent letters to the whistleblowers, informing them that their claims had been reopened but that that the IRS had not made a decision as to whether they were eligible to receive an award.

Judge Foley, in a strongly worded opinion, chided the IRS for failing to tell the court in a timely manner that it had reopened the whistleblower’s investigation, and was potentially reopening the whistleblowers’ awards claim.  Judge Foley noted that he did “not know whether these failures were the result of bureaucratic confusion or ineptitude,” but that he did know that “the obfuscation surrounding this matter has either been caused or exacerbated” by the IRS.

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