T.C. M em o . 2 0 1 9 -1 4 1

UNITED STATES TAX COURT

VINCENT J
. APRUZZESE, Pet i t i on er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 1 2 1 51 -1 7 W
. Fi l edOct o b er 2 1 , 2 0 1 9
.
Vi n cen tJ . Ap ru zzes e, p ro s e. Greg o ry H. Beck er, Bart h o l o m ew Ci ren za, Ki m b erl y A. Dai g l e, Pat ri ci a P. Dav is , an d Kev i n G. Gi l l i n , fo r res p o n den t .

M EM ORANDUM OPINION VASQUEZ, Ju d ge: Th i s wh i st l eb lo wer award cas e i s b efo re th e Co urto n a
m o ti o n fo r s u m

m ary ju d g m en tfi l edb y

the In t ern al Rev en ue Serv i ce (IRS o r
res p o n d en t). Fo r t h e b el o w reas o n s we wi l l g ran tres po n den t’ s m o t i o n .- 2
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[* 2 ] Back gro u n d Th e fo l l o w i n g fact s are b as edo n th e p art i es ’ p l ead i n g s an dm o t i o n p ap ers , i n cl u d i n g th e d ecl arat i on s an dex h i b i t s at t ach edth eret o . See Ru l e 1 2 1 (b ). 1 Pet i t io n er res i dedi n Fl o ri d a wh en h e fi l edh i s p et i t i o n . OnSep t em

b er 1 6 , 2 0 1 1 , p et i t io n er an da co cl ai m an t 2 s ub m it t edFo rm 2 1 1 , Ap p l i cat i o n fo r Awardfo r Ori g i n al In fo rm at i o n , t o th e IRS W hi s t l eb l o wer Offi ce (W O ). Onth e Fo rm

2 1 1 p et it i on er s t at edth ath e an d h is co cl ai m an twere i n v o l v ed i n a l aws u i t ag ai n stan es t at e (t arg et ). Pet i t i o n er al l eg ed th atth e t arg eth ad
u n d ers t at edi t s Fed eral es t at e t ax b y s ev eral m i l l i o n d o l l ars b y fai l in g t o i n cl u d e
s ev eral as s et s o n i t s es t at e t ax retu rn . 3 Pet i t i o n er al s o al l eg edth atth e t arg eth ad
u n d erv al u edo th er as s et s o n th e es tat e t ax retu rn . Aft er recei v i ng p et i t i o n er’ s Fo rm 2 1 1 th e W O as s i g n edp et i t i o ner a cl ai m
n u m b er an dackn owl ed g ed recei p t o f t he cl ai m b y l et t er d at edSep t em

b er 2 7 , 2 0 1 1.

1 Al l Ru l e referen ces are t o th e Tax Co u rt Ru l es o f Pract i ce an dPro cedu re, an d al l s ect i o n referen ces are t o th e In t ern al Rev en u e Co d e i n effect atal l rel ev an t t i m es . W e ro u n d al l m o n et ary am o u n ts t o the n eares td o l l ar.

2 Th e co cl ai m an ti s n o ta p art y t o th i s cas e. 3 Pet i t i o n er p rem is edp arto f t h i s al l eg at io n o n t h e b el i ef t h atthe d eced en t o f t h e t arg eth ads o ldas s et s i n ex ch an g e fo r i n v al i d i n s t al l m en tn ot es .- 3
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[* 3 ] Th e W O s en tp et i t i o n er’ s Fo rm 2 1 1 i n fo rm at i o n t o th e Es t at e & Gi ftUn i t (E&G) o f t h e IRS Sm al l Bu s i n es s / Sel f-Em p lo y edDi v i s i on . Th e t arg et ’ s es tat e t ax retu rn was al read y u n d er ex am in at i o n wh enp et i t i o n er
s ub m i t t edh i s i n fo rm at i o n t o th e W O. Befo re recei vi n g p et i t i o n er’ s i n fo rm at i o n , E&G At t o rn ey

Bry anBab co ck

was p rep ari n g t o i s s u e t h e t arg et a “N o Ch an g e” l et t er. Ho wev er, up o n rev i ewi ng p et i t i o n er’ s i n fo rm at i o n , M r. Bab co ckch an g ed
co u rs e an dp u rs u ed i n fo rm at i o n p ert ai n i ng t o the l aws u i treferen cedi n p et it i o n er’ s Fo rm 2 1 1 . Subs equ en t l y , M r. Bab co ck ’ s d i s co v ery th atth e t arg eth ad u sed“ t ax affect i n g ” b u s i n es s v al u at i o n s p ro m p t ed h im t o s el ectfo u r o f t h e d eced en t ’ s g i ft t ax return s fo r ex am i n at i o n . Atth e co n cl u s i o n o f t h e ex p an d edex am in at io n , th e IRS an dthe t arg et ag reedt o ad

ju s t m en t s t o th e es t at e t ax retu rn an dg i ftt ax retu rn s . Th e IRS
as s es s edt ax an di nt eres t o f $ 4 24 ,0 1 9 , wh i ch th e t arg etp ro m p t ly p ai d . M r. Bab co cks ub m i t t ed Fo rm 1 1 3 69 , Co n fi d en t i al Ev al u at i o n Rep o rt o n Cl ai m fo r Award , t o th e W O. Th erei n Mr. Bab co ck s tat edth atp et i t io n er h ad“ s ubs t an t i al l y
co n tri b u t edt o th e ex am i n at i o n o f t h e es tat e t ax retu rn .” Th ereaft er t h e W O as s i g n ed p et i t i o n er’ s cl ai m t o Sen i o r Tax An al y s t El i zab et h Bo ren s t ei n . Aft er rev i ewi n g p et it io n er’ s cas e fi l e, i ncl u d i n g M r. Bab co ck ’ s Fo rm

1 1 3 6 9 , M s . Bo ren s t ei n i ss uedp et i ti o n er a Prel i m i n ary Award- 4
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[* 4 ] Reco m

m en d at i o n Un d er Sect i o n 7 6 2 3 (a) (p rel i m i naryaward
reco m m en d at i o n) reco m

m en d i n g a p rel i m i naryawardo f $ 4 3 ,4 2 4 (2 2 % o f o n eh al f 4 o f t he co l l ect edp ro ceed s l es s a 6 .9 % s equ es trat i o n redu ct i o n ). In a l et t er t o M s . Bo ren s t ei n d at edM arch 2 2 , 2 0 1 7 , p et it i o n er ex p res s ed d i s ag reem en twi th th e p rel i m i n ary awardreco m

m en d at io n . Pet i t io n er d i dn o t d i s p u t e t h e p ro p o s edaward p ercen t ag e o r t he am o u nto f t h e co l l ect edp ro ceed s . In s t eadh e o b

ject edt o res po n d en t ’ s ad ju s t m en t s t o the t arg et ’ s retu rn s , wri t i n g : W i th al l du e res pect , I b el i ev e t h at th e IRS h as fai l ed t o fu ll y co m p reh en dth e s co p e o f t h e fai lu re o f t h e rep res en t at i v es o f * * * [t he t arg et ] t o accu rat el y

refl ectth e as set s an dl i ab i l i t i es o f * * * [t h e t arg et ] t o th e IRS, an d acco rd in g l y h as fai l ed t o p ro p erl y

d et erm in e th e am o u nto f ad d i t i o n al t ax es o wedb y * * * [t h e t arg et ]
. OnM ay 2 , 2 0 1 7 , th e W O i s s u edp et i t io n er a Fi nal Deci s i o n Un d er Sect i o n 7 6 2 3 (a) (fi n al d eci s i o n ). Th erei n res p o n d en tad v i sedp et i t i o n er t h at , aft er
co n si d erat io n o f h i s co m

m en ts , th e wh i s t l eb l o wer award wo u ldrem ai n $ 4 3 ,4 2 4
. OnM ay 3 0 , 2 0 1 7 , p et i t i o n er fi l ed th e p et i t io n t o co m m en ce t h i s cas e, i n wh i ch h e al l eg edth atres p o n d en t ’ s ad ju st m en t s t o th e t arg et ’ s retu rn s were i n ad equ at e. Anam en d m en tt o th e p et i t i o n fo l l o wedo n J u l y 2 6, 2 0 17 , i n wh i ch p et i t i o n er u rg edth e Co u rtt o rev ers e t h e fi n al d eci s i on an d o rd er t h e IRS t o re4 Th e W O d i v i d edth e co l l ect edp ro ceed s b y o n e-h al f b ecau s e p et i t i on er s ub m i t t edth e Fo rm

2 1 1 wi th a co cl ai m an t. As s t at eds up ra n o t e 2 , th e co cl ai m an t i s n o ta p art y

t o t h i s cas e.- 5
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[* 5 ] ex am i n e t he t arg et . Res p o n d en ts ub s equ en t l y fi l eda m o ti o n fo r s umm ary ju d g m en tan dam en d m en tt o m o t i o n fo r s u m m ary ju d g m en t , t o wh i ch p et i t i o n er
o b ject ed . Th e Co urt h eardo ral arg u m en t o n th e m o t io n i n Tam p a, Fl o ri d a. Di s cu ss i o n I. Su m

m ary J u dg m en t Su m m ary ju d g m en ti s i n t en d edt o ex p ed i te l i t i g at i o n an d av o i du n n eces s ary
an d ex p en s i ve t ri al s. Fl a. Peach Co rp . v . Co m m i s s i o ner, 9 0 T.C. 6 7 8 , 6 8 1 (1 9 8 8 ). Th e Co u rtm ay

g ran ts u m

m ary ju d g m en t“ up on al l o r an y p arto f t h e l eg al i s s u es i n
co n tro v ers y ” wh en th ere i s n o g en u i n e d i s p u t e as t o an y m at eri al factan da d eci s i o n m ay

b e ren d eredas a m at t er o f l aw. Ru l e 1 2 1 (a) an d(b ); s ee Su n d s tran d Co rp . v . Co m

m i ss i o n er, 9 8 T.C. 5 18 , 5 2 0 (1 9 9 2 ), aff’ d, 1 7 F.3 d 9 6 5 (7 th Ci r. 1 9 9 4 ). In d eci d in g wh et h er t o g ran ts u m m ary ju d g m en t , we co n s tru e fact ual
m at eri al s an di nferen ces drawn fro m th em i n t h e l i gh tm o s tfav orab l e t o th e
n o n m o v i n g p art y . Su nd st ran d Co rp . v . Co m m i s s i o ner, 9 8 T.C. at5 20 . Ho wev er, th e n o nm o v i n g p art y

“ m ay n o tres tup o n t h e m ere al l eg at i o ns o r d en i al s” o f h i s p l ead i n g s b u ti n st ead“ m

u s ts etfo rt h s p eci fi c fact s s h o wi n g thatth ere i s a g en u i n e d i s p u t e fo r t ri al .” Ru l e 1 2 1 (d ); s ee Su n d s tran dCo rp . v . Co m m is s io n er, 9 8 T.C. at5 2 0
.- 6
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[* 6 ] Fi n d i n g n o m at eri al fact s t o b e i n g en u i n e d i s p u t e, we co n cl u d e th atth i s
cas e m ay b e ad ju d i cat ed s umm ari l y . II. J u ri s d i ct i o n Sect io n 7 6 2 3 (b ) p ro v i d es fo r n o n d i s cret i o n ary (i .e., m an d at o ry ) wh i st l eb l o wer award s i f cert ai n req u i rem en t s are m et . Sect i o n 7 6 23 (b )(4 ) p ro v id es th at“ [a] n y

d et erm i n at i o n reg ard i ng an award u n d er p arag rap h (1 ), (2 ),
o r (3 ) m ay , wi th in 3 0 d ay s o f s u ch d et erm i n at i o n , b e ap p eal edt o th e Tax Co u rt (an dth e Tax Co u rts h al l h av e ju ri s d i ct i o n wi th res p ectt o s u ch m at ter).” Th i s
s t atu te i s u n u s u al as a ju ri s d i ct i o n -co n ferri n g p ro v i s io n b ecau se i t d o es n o t p res cri be an y

p art icu l ar fo rm

o f n o t i ce t o th e wo u l d -b e p et i ti o n er. Wh i st l eb l o wer 4 4 9 6 -1 5 W v . Co m

m i s s i on er, 1 4 8 T.C. 4 2 5 , 4 3 1 (2 0 1 7 ); Wh i s t leb l ower 2 3 7 1 1 -1 5 W

v . Co m m i s s i o n er, T.C. M em o. 2 0 18 -3 4 , at* 8
. In p ri o r cas es “ [w] e h av e h el dth at th e n am e o r l ab el o f a d o cu m en t d o es n o t
co n tro l wh et h er t h e d o cu m en tco n st i tu t es a d et erm i nat i o n ” an d t h at“ o u r juri s d i ct i o n i s es t ab l i s h edwh en the Co m m i ss i o n er i s s u es a wri t t en n o t i ce t h at
em bo d i es a d et erm i n at i o n .” Co o p er v . Co m m i s s i o n er, 1 35 T.C. 7 0 , 7 5 (2 0 1 0 ). A wri t ten n o t i ce i n fo rm i n g a cl ai m an tth at th e IRS h as co n s i d eredi n fo rm at i o n th at h e s ubm i t t ed an d h as d eci d edwh et h er t h e i n fo rm at i o n qu al i fi es the cl ai m an tfo r an awardg en eral l y wi l l b e s u ffi ci en t . See Co m pari n i v . Co m

m i s si o n er, 1 4 3 T.C. 2 7 4 ,- 7
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[* 7 ] 2 7 8 -2 7 9 (2 0 1 4 ); s ee al s o M y ers v . Co m m is s i o n er, 9 28 F.3 d 1 0 2 5 , 1 03 2 (D.C. Ci r. 2 0 19 ), rev ’ g an drem an d i n g o n o th er g ro u nd s 1 4 8 T.C. 4 3 8 (2 0 1 7 ). In a wh i st l eb l o wer act i on , we h av e ju ri s d i ct io n o n l y wi th res p ectt o t h e Co m m i s s i o n er’ s awardd et erm i n at i o n o r d en ial th ereo f. Sm i th v . Co m m i ss i o n er, 1 4 8 T.C. 4 4 9 , 4 5 4 (2 0 1 7 ). Th e fi n al d eci si o n i n thi s cas e d o es n o treferen ce s ect i o n 7 6 2 3 (b ) b u trat h er
s ect i on 7 6 2 3 (a), wh i ch p ro v i d es fo r d i s cret i o n ary award s . Ho wev er, t h e fi n al d eci s i o n s t at es thatthe W O co n s i d eredp et i ti o n er’ s i n fo rm at i o n an d“ m ad e a fi n al d eci s i o n ” t o g i v e p et it i o n er an awardo f $ 4 3 ,4 2 4. In h eren ti n t h atd eci s i o n i s
res p o n d en t’ s d et erm i n at i o n thatp et i t i o n er i s n o ten t it l edt o a m an d at o ry s ect i o n 7 6 2 3 (b ) awardex ceed i n g $ 4 3 ,4 2 4
. Ina p et i ti o n fi l edwi th i n 3 0 d ay s o f t h e d at e o f th e fi nal d eci s i o n , p et i ti o n er ch al l en g edth atd et erm i n at i o n. Th is m at t er i s cl earl y wi th i n th e s co p e o f o u r ju ri sd i ct i o n au th o ri zedb y Co n g res s i n s ect i o n 7 6 2 3 (b )(4 ). See Sm i th v . Co m

m i ss i o n er, 1 4 8 T.C. at4 5 3 -4 5 4 (rev i ewi n g ch al l en g e t o a fi n al d eci s i o n ).- 8
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[* 8 ] III. An al y s i s Sect io n 7 6 2 3 (a) au th o ri zes th e Secret ary 5 t o p ay award s fo r “ d et ect i n g
u n d erp aym en t s o f t ax ” o r “ d et ect i n g an d b ri ng i n g t o tri al an dp u n i s h m en tp ers o ns g u i l ty o f v i o l at i ng th e i n t ern al rev en u e l aws o r co n n i v i n g atth e s am e”. Award s
u n d er s ect i o n 7 6 2 3 (a) are d i s cret i o n ary . Ho wev er, Co n g res s h as p ro v i dedfo r
n o n d i s cret i o n ary award s t o wh i s t l eb l o wers wh ere t h e Secret ary “p ro ceed s wi th
an y ad m i n i s trat i ve o r ju d i ci al act i o n d es cri b edi n s ubs ect i on (a)” an ds p eci fi ed ad d it i o n al req u i rem en ts are m et . Sec. 7 6 2 3(b )(1 ). Sect io n 7 6 2 3 (b )(1 ) p ro v i d es th at , “ [i ] f t h e Secret ary p ro ceed s wi th an y ad m i n is trat i v e o r ju d ici al act i o n d es cri b edi n s ub s ect i o n (a) b as edo n i n fo rm at i o n b ro u gh t t o th e Secret ary ’ s at t en t i o n b y an i n d i v idu al ,” t hati n d iv i du al wi ll , s ub ject t o cert ai n co n di ti o n s , recei v e an awardo f 1 5 % t o 3 0 % o f t he p ro ceed s co l l ect ed
. Th e s ize o f t h e awardd ep en d s o n th e ex t en tt o wh ich th e wh i s t leb l o wer

“ s ub s t an t i al l y

co n tri b u t edt o s uch act i o n .” Sec. 7 6 23 (b )(1 ) (l as t s en t en ce) an d(2 ).

5 Th e t erm

“ Secret ary ” m ean s “ th e Secret ary o f t h e Treas u ry

o r h i s d el eg at e”, s ec. 7 7 01 (a)(1 1 )(B), an dthe t erm “ o r h i s d el eg at e” m ean s “ an y o ffi cer, em pl o y ee, o r ag en cy o f t h e Treas u ry Dep art m en tdu l y

au th ori zedb y

the Secret ary o f t h e Treas u ry di rect l y , o r i n d i rect l y b y o n e o r m o re red el eg at i o n s o f au th o ri ty , t o p erfo rm th e fu nct i o n m en t i o n edo r d es cri b ed i n th e co n t ex t”, s ec. 7 7 0 1 (a)(1 2 )(A)(i ).- 9
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[* 9 ] Un d er th i s s t atu t o ry s ch em e a wh i s t l eb l o wer can no tqu al i fy fo r a
n o n d i s cret i o n ary awardu n les s two co n d i t i o n s are m et . Fi rs t , th e Secret ary m u s t

“p ro ceed [] wi th an [] ad m i n i s trat i v e o r ju d i ci al act io n d es cri bedi n s ub s ect i o n (a) b as edo n i n fo rm at i o n b ro ug h tt o th e Secret ary ’ s at t en t i on ” b y th e wh i s tl eb l o wer. Sec. 7 6 23 (b )(1 ). Seco n d , th e Secret ary m u s td eri v e p ro ceed s fro m

th i s act io n . Id .;
s ee Co h en v . Co m

m i s s i o n er, 1 3 9 T.C. 2 9 9 , 3 0 3 (2 0 1 2 ) (“ W e can p ro v i d e rel i ef
u n d er s ect i o n 7 6 2 3 (b ) o nl y aft er t h e Co m

m is s i o n er h as i n it i at edan ad m i n i s trat i v e
o r ju d i ci al act i o n an dco l l ect edp ro ceed s .”), aff’ d , 5 5 0 F. Ap p ’ x 1 0 (D.C. Ci r. 2 0 1 4 ); Co o p er v . Co m

m i ss io n er (Co o p er II), 1 3 6 T.C. 5 97 , 6 0 0 (2 0 1 1 ) (“ [A] wh i st l eb l o wer award i s d ep en d en tup o n b ot h th e i ni t i at i on o f an ad m in i s trat i v e o r ju d i ci al act i o n an dco l l ect i o n o f t ax p ro ceed s.”). Wh i l e we h av e ju ri sd i ct i o n t o rev i ew t h e Co m m i s s i o n er’ s award d et erm i n at i o n , we d o n o t h av e au th o ri ty t o “ rev i ew t h e Co m m is si o n er’ s d et erm i n at i o n s o f t h e al l eg edt ax l i ab i l i ty t o wh ich th e cl ai m

p ert ai n s.” Co h en v . Co m m i s s i o n er, 1 3 9 T.C. at3 0 2. No r d o we h av e au th o ri ty “ t o d i rect the Secret ary t o p ro ceed wi th an ad m i ni s trat iv e o r ju d i ci al act i on .” Co o p er II, 1 3 6 T.C. at6 0 0
. W e rev iew t h e Secret ary ’ s d et erm i n at i o n as t o wh et h er a wh i s t l eb lo wer i s
en t i t l edt o an awardb y

ap pl y i n g an ab u s e-o f-d i s cret i o n s tan d ard . Kas p er v . Co m m i s s i o n er, 1 5 0 T.C. 8 , 2 2 (2 0 1 8 ). Ab u s e o f d i s cret io n ex i st s wh en a- 1 0 -

[* 1 0 ] d et erm in at i o n i s arb i trary , cap ri ci o u s , o r wi th o u ts o u n db as i s i n facto r l aw. M u rp h y v . Co m m i s s i o n er, 1 2 5 T.C. 3 0 1 , 3 2 0 (2 0 05 ), aff’ d , 4 6 9 F.3 d2 7 (1 s tCi r. 2 0 0 6 ). In as cert ai n i ng wh et her t h e Secret ary ab u s edh is d i s cret i o n , we g en eral l y
co n fi n e o u r rev i ew t o th e ad m i n i s trat i v e reco rd . Kas per v . Co m m is s i o n er, 1 5 0 T.C. at2 0
. W e co ncl u d e t h at th e W O d idn o t ab u s e i t s d is cret i o n i n award i n g p et i t i o n er
n o m o re t h an th e am o u n ts t at edi n th e fi n al d eci s i o n . Th e ad m i n i s trat i v e reco rd
s h o ws th atth e W O fo rward edp et i t i o n er’ s i n fo rm at i o n t o E&G, wh i ch h adal read y
co m m en cedan ex am i n at i on o f t h e t arg et . M r. Bab co ck , th e E&G at t o rn ey
as s i g n edt o th e ex am i n at i o n , was p rep ari n g t o i s s u e t he t arg eta “No Ch an g e” l et t er b u tch an g edco u rs e wh en h e recei v edp et i t i on er’ s i n fo rm at i o n . Us i ng p et i ti o n er’ s i n fo rm at i o n , M r. Bab co ckp u rs u edn ew l ead s th at u l t im at el y l edt o th e as s es s m en t
o f es t at e an dg i ftt ax an di n t eres to f $ 4 2 4 ,0 1 9 . Ina Fo rm 1 1 3 6 9 s ubm i t t edt o th e W O, M r. Bab co cks t at edth atp et i t i o n er “ s ig n ifi can t l y co n tri b u t ed ” t o th e
ex am i n at i o n o f t h e t arg et ’ s es t at e t ax retu rn . Onth e b as is o f M r. Bab co ck ’ s Fo rm 1 13 6 9 an do th er d o cu m en t s i n th e cl ai m fi l e, W O Sen io r Tax An al y s tBo ren st ei n reco m m en d edthatp et i t i on er b e award ed$ 4 3 , 4 2 4 (2 2 % o f o n e-h al f o f t he co l l ect edp ro ceed s l es s a 6 .9 %
s equ es trat i o n redu ct i on ). Aft er co n s i d eri n g p et i t i o n er’ s wri t t en res p o n s e t o th e- 1 1 -

[* 1 1 ] p rel i m i n ary

awardreco m

m en d at i o n , th e W O i s su edth e fi n al d eci s i o n ad v is i n g p et i t i o n er th atth e wh i s t l eb l o wer award wo u l d rem ai n $ 4 3 , 4 2 4
. Pet i t i o ner d o es n o tal l eg e an y m at eri al d i s p u t e as t o th es e fact s . He d o es
n o t , fo r ex am

p l e, d i s p u t e t h e am o u n to f p ro ceed s res po n d en tco l lect edfro m th e t arg et . No r d o es h e co n ten dth ath is co n tri b u t i o n t o th e ex am i n at i o n m eri t edm o re th an a 2 2% award . See s ec. 7 6 2 3 (b )(1 ) (au th o ri zi n g n o n d is cret i o naryaward s b et ween 1 5 % an d3 0 % o f co l l ect edp ro ceed s d ep en di n g o n th e ex t en t t o wh i ch wh i st l eb l o wer “ s ub s t an t i al l y co n tri b u t ed ”). In s t ead pet i t i o ner al l eg es th atth e am o u n tres po n den tco l lect edwas

“ wo efu l l y i n ad equat e” b ecau s e t h e as s et s i n th e t arg et ’ s g ro s s es t at e were p u rp ort ed l y

m o re v al u ab l e t h anres p o n d en t d et erm i n ed . Pet i t i o n er u rg es th e Co u rt t o o rd er res p o n d en t t o re-ex am i n e t h e t arg et ’ s es t at e t ax retu rn fo r ad di t i o n al d efi ci en ci es an d , i f n eces s ary , o rd er res p o n d en tt o p ro ceed t o tri al ag ai n s t th e t arg et . In Co o p er II, 1 3 6 T.C. at5 9 8 , an at t o rn ey -wh i s tl eb l o wer al l eg edth atcert ai n t ax p ay ers h adfai l edt o p ay m i ll i o n s o f d o l l ars i n es tat e an dg en erat i on -s k i p p i n g tran s fer t ax . Th e wh i s t l eb o wer p ro v i d edth e IRS wi th i n fo rm at i o n p ert ai n i n g t o th e es t at e. Id . Th e W O fo rward edth e i nfo rm at i on t o th e ap pro p ri at e IRS o ffi ce, wh i ch d eci d edn o tt o p u rs ue ad m i n i s trat i v e o r ju d i ci al act io n ag ai n s tthe t ax p ay er.- 1 2 -

[* 1 2 ] Id . at5 9 9 . Becau s e t here was n o ad m i n i s trat iv e o r ju d ici al act i o n th atl ed t o th e co l l ect i o n o f p ro ceed s , th e W O d et erm in edth atth e wh is t leb l o w er was n o t
en t i t l edt o an award . Id . Li k e p et i t i o n er i n th i s cas e, t h e Co op er II wh is t leb l o wer ap p eal edth e W O’ s d et erm i nat i o n an d as kedth i s Co u rtt o d irect th e Co m m i s s i o n er

“ t o u n d ert ak e a co m

p l et e re-ev al u at i o n o f t he fact s i n th is m at t er, b eg i n an i n v es t i g at i o n , o pen a cas e fi l e, an dt ak e wh at ev er o th er s t ep s are n eces saryt o d et ectan u nd erp aym en t o f t ax . ” See i d . at6 0 0 . Gran ti n g th e IRS’ m o t i on fo r
s u m m ary ju d g m en t , th e Co u rti n Co o p er II ex p l ai n ed : “ Ou r ju ri sd i ct i o n u n d er
s ect i on 7 6 2 3 (b ) d o es n o t co n t em p l at e t h atwe red et erm i n e t h e t ax l i ab i l i ty o f t h e t ax p ay er. * * * [A] l tho u g h Co n g res s au th o ri zedth e Co urtt o rev i ew the Secret ary ’ s award d et erm i n at i o n , Co n g res s d idn o tau th o ri ze t h e Co u rtt o d i rect th e Secret ary

t o p ro ceed wi th an ad m i n i s trat i v e o r ju d i ci al act i o n .” Id
. Th e s am e p ri n ci p l e ap p l i es t o th e cas e atb ar. Al th o u g h p et i t i o n er’ s i n fo rm at i o n l ed t o ad m i n i s trat i v e act i o n ag ai n s tth e t arg etan dth e co l l ect io n o f p ro ceed s t h erefro m , p et i t i o n er an dthe Co op er II wh i st leb l o wer s h are t he s am e
o v erarch i n g g ri ev an ce--t h atthe IRS al l o wed th e t arg ett o p ay l es s i n t ax than i t
s h o u ldh av e. Pet i t i o n er i s as ki n g the Co u rtt o red res s t h is g ri ev an ce b y o rd eri n g
res p o n d en t t o re-ex am i n e t h e t arg et . W e d o n o t h av e t h i s au th o ri ty . See Co h en v . Co m m i s s i o n er, 1 3 9 T.C. at3 0 2; Co o p er II, 1 36 T.C. at6 0 0 -6 0 1
.- 1 3 -

[* 1 3 ] Becau s e p et i t i o n er h as n o ts h o wnth ath e was en t i t l ed t o a l arg er award th an
res p o n d en t d et erm i ned , th e W O d i d n o tab u s e i t s d i scret i o n i n m ak i n g i t s d et erm i n at i o n . W e wi l l th erefo re g ran ts u m m ary ju d g m en t fo r res p o n d en t . W e h av e co n s id eredal l th e o th er arg u m en ts m ad e b y th e p art i es , an dt o th e
ex t en tn o td i s cu ss edab o v e, fi n dth o s e arg u m en t s t o b e i rrel ev an t , m o o t , o r wi th o u t
m eri t . To refl ectthe fo reg o i n g , Anap p ro p ri at e o rd er an dd eci s i o n wi l l b e en t ered
.