T.C. Mem o. 2 01 4- 10 6

UNITED STAT ES TAX COURT

W HISTLEBLOW ER 10 94 9- 13 W , Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 10 94 9- 13 W . Fil edJu ne 4, 2 01 4. Seal ed , forpe ti ti on er. Seal ed , forres po nd en t.

MEMORANDUM OPINION KROUPA, Ju dg e: Thi s ca se is be fo re the Co urt o n re sp on de nt ’s m ot io n t o 1 di sm is s fo r la ckof juris di ct io n. We m us t d eci de whet he r th e Co urt h as juri sd ic ti on to rev ie w res po nd en t’s wh is tl eb lo wer cl ai m awardde te rm in at io ns

Thi s C ou rt p rev io us ly gran te d the whi st le bl owe r’s m ot io n t o p ro ceed 1 an on y m ou sl y an d s eal edth e rec or d i n thi s ca se .- 2 -

[* 2] whe re the whi st le bl owe r pr ov id edin fo rm at io n b ot h b efo re an d a fte r th e en act m en t o f th e Tax Rel ie f an d Hea lth C are Actof 2 00 6 (TRHCA) , Pub . L. No. 2 10 9- 43 2, d iv . A, sec. 4 06 , 12 0 S ta t. at29 58 , effec ti ve Decem be r 20 , 20 06 . W e ho ldth atwe do . 3 Bac kg ro un d The fol lo win g b ack gr ou ndis dra wn fr om th e p et it io n andres po nd en t’s m ot io n t o d is m is s fo r la ck of s ub ject m at te r juri sd ic ti on an d re sp on se s fi le d b y bo th parti es . W e n ot e th atth e b ack gr ou ndis st at edso le ly for p ur po se s o f ru li ng on th e p en di ng m ot io n t o d is m is s an d i s n ota fi nd in g o f fac ts . Pet it io ne r is a whi st le bl owe r th atrep orte d atax frau d s ch em e to th e Gov ern m en t. Durin g the whi st le bl owe r’s em pl oym en t, the whi st le bl owe r le arn ed of a ta x s tru ctur e in vo lv in g the whi st le bl owe r’s em pl oyer an d s ev eral rel at ed en ti ti es an d s ub si di ary co m pa ni es (targ et s) . W

he n the whi st le bl owe r rai se d co nc ern s o ve r th e ta x s tru ctur e to th e whi st le bl owe r’s em pl oyer, th e whi st le bl owe r’s em

pl oyer us edph y si cal for ce an d arm edm ento in ti m id at e th e Tax Rel ie f an d Hea lth C are Actof 2 00 6, Pub. L. No. 1 09 -4 32 , di v. A, se c. 2 40 6, 1 20 Sta t. at29 58 , cod ifi edat s ec. 7 62 3( b) . All sec ti on refe ren ces are t o the Int ern al Rev enue Co de ineffe ctat a ll 3 rel ev an t t im es , andall Ru le refe ren ces are t o the Tax C ou rt Rul es of P ract ic e an d Pro cedur e, un le ss othe rwis e in di cat ed . All a m ou nt s ar e ro un de d t o the ne ares t do ll ar.- 3 -

[* 3] whi st le bl owe r an d p rev en t d is cl os ur e. Add it io na ll y , th e em pl oyer rem ov ed al m os t al l d oc um en ts an d re co rd s fr om th e whi st le bl owe r’s of

fic e. The whi st le bl owe r, ho wev er, k ep t co m pr eh en si ve ba ckup s o f al l o ffi ce re co rd s. InOcto be r 20 06 th e whi st le bl owe r m etwith In te rn al Rev enue Serv ic e (IR S) an d Dep art m en t o f Ju st ic e (DOJ) rep res en ta ti ve s an d p ro vi de d the m with in fo rm at io n abo utth e ta rg et s’ fai lu re t o p ay tax an d o th er co nduc t. Subs eque nt ly, th e whi st le bl owe r ag ai n m etwith the DOJ rep res en ta ti ve s an d d is cu ss edth e targ et s’ po te nt ia l t erro ris t fi na nc in g a ct iv ity . A gran d jury in ve st ig at io n was co nv en edonth e b as is of the whi st le bl owe r’s in fo rm at io n. 4 The whi st le bl owe r co nt inue d t o p ro vi de ad di ti on al in fo rm at io n re ga rd in g th e ta rg et s’ act iv it ie s an d was inreg ul ar co nt actwith the IRS an d the DOJ rep res en ta ti ve s af

te r Decem

be r 20 , 20 06 . The IR S an d the DOJ rep res en ta ti ve s rep eat ed ly con ta ct edth e whi st le bl owe r se ek in g a dd it io na l i nf orm at io n and an al y si s re ga rd in g the tar ge ts ’ tra ns act io ns . On eac h o ccas io n, the whi st le bl owe r pr ov id edth e reque st edin fo rm at io n andan al y si s. In20 07 th e whi st le bl owe r te st ifi edbe fo re a g ran d jury onth e b as is of i nf

orm at io n the whi st le bl owe r acqui red

The whi st le bl owe r’s in fo rm at io n was supp le m en te d wi thin fo rm at io n fr om 4 an ot he r whi st le bl owe r.- 4 -

[* 4] aft er Dece m

be r 20 , 20 06 . The wh is tl eb lo wer p ro vi de d i nf orm at io n t o the 5 IRS andth e DOJ re pr es en ta ti ve s co nt in ua ll y un ti l Jul y

20 09 . Not ab ly, th e

6 whi st le bl owe r’s as si st an ce i n thi s i nv es ti ga ti onjeop ard iz edth e sa fety of the whi st le bl owe r an d the whi st le bl owe r’s fam il y . As di sc us se d i n d et ai l i n Whi st le bl owe r 10 94 9- 13 W v. Co m m is si on er, T.C. Mem o. 2 01 4- 94 , th e whi st le bl owe r rec ei ve d ade ath thr eatfro m th e ta rg et s. The whi st le bl owe r fi le d aFo rm 21 1, Ap pl ic at io n fo r AwardforOrig in al In fo rm at io n i n 2 01 1 andsubm it te d t o the IRS Whi st le bl owe r Offi ce (Whis tl eb lo wer Offi ce) d oc um en tary ev id en ce re late d t o the tar ge ts ’ act io ns th at th e whi st le bl owe r ha d p rev io us ly dis cl os ed . Sho rtl y th erea fte r, th e Gov ern m en t en te redin to a Non -Pro se cu ti on Agre em en t wi th on e o f th e ta rg et s tha t l edto th e Gov ern m en t re co ve rin g m or e th an$3 0 m il li on intax es , pen al ti es an d i nt eres t. The Whi st le bl owe r Offi ce g ran te d the whi st le bl owe r a d is cret io na ry award

The whi st le bl owe r’s te st im on y in cl ud edth e id en ti ty of do cu m en ts , wire 5 tra ns fers , di sb ur se m en t au th or iz at io ns , in di vi du al s an d e nt it ie s i nv ol ve d i n the tra ns act io ns . The whi st le bl owe r al so co m pi le d andtu rn edov er t o the IRS s pe ci fic 6 in fo rm at io n re ga rd in g the tar ge ts ’ co nduc t an d d oc um en tary ev id en ce o n the tra ns act io ns an d e nt it ie s i nv ol ve d. InJan ua ry 20 08 th e whi st le bl owe r se ntth e IRS a d et ai le d l is t o f th e en ti ti es in vo lv edinth e ta x e va si on sch em e. Thi s i nf orm at io n was pre vi ou sl y

un kn ownto th e IRS .- 5 -

[* 5] de te rm in at io n u nd er s ect io n 7 62 3( a) an d d en ie d the whi st le bl owe r’s reque st fo r anawardun de r se ct io n 7 62 3( b) . The whi st le bl owe r ti m el y fil edth e p et it io n s eek in g re vi ew of res po nd en t’s awardde te rm in at io n. Re sp on de ntfil eda m ot io n t o d is m is s fo r la ckof juris di ct io n on th e g ro un d tha t re sp on de nt ’s awardde te rm in at io n i s n otsubjec t t o ju di ci al rev ie w. Resp on de ntarg ue s tha t thi s C ou rt l ack s juris di ct io n t o re vi ew res po nd en t’s awar d d et erm in at io n b ecau se he pro ceed edag ai ns t the tar ge ts us in g in fo rm at io n the whi st le bl owe r pr ov id edbe fo re the effe ct iv e d at e o f se ct io n 76 23 (b ), Decem

be r 20 , 20 06 . The wh is tl eb lo wer o bjec te d t o the m ot io n, 7 8 as se rti ng th atth e whi st le bl owe r is en ti tl edto jud ic ia l re vi ew of res po nd en t’s awardde te rm in at io n b ecau se th e whi st le bl owe r pr ov id edin fo rm at io n b ot h b efo re an d a fte r th e eff

ect iv e d at e o f se ct io n 7 62 3( b) . W e ag ree wi th th e whi st le bl owe r. W e le av e fo r an othe r da y whet he r th e whi st le bl owe r is en ti tl edto a larg er awar d.

As d is cu ss edin fra, s ec. 7 62 3( b) (4 ) fo r th e fi rs t t im e g ran te d thi s C ourt 7 juri sd ic ti on to he ar a wh is tl eb lo wer’s p et it io n fo r rev ie w of the Co m m is si on er’s awardde te rm in at io n. The am en dm en ts en act in g s ec. 7 62 3( b) ap pl y to in fo rm at io n p ro vi de d o n o r 8 aft er Dece m

be r 20 , 20 06 .- 6 -

[* 6] Dis cu ss io n W e m us t d eci de whethe r th e Co urt h as juri sd ic ti on to rev ie w res po nd en t’s whi st le bl owe r cl ai m

awardde te rm in at io n wh ere the cla im is ba se d o n i nf

orm at io n th e whi st le bl owe r pr ov id edbo th be fo re an d a fte r th e en act m en t o f TRHCA se c. 40 6, 1 20 Sta t. at29 58 . 9 1 0 I. Overvi ew of

th e Co urt’s Jur is di ct io n andth e Whis tl eb lo wer Pro gr am W e b eg inwith the Tax C ou rt’s juris di ct io n. Th e TaxCo urt i s a c ou rt o f li mit edjuri sd ic ti on an d m ay ex erci se juri sd ic ti on on ly to the ex te ntauth or iz edby Co ng res s. Jud ge v. Co m m is si on er, 8 8 T.C. 1 17 5, 1 18 0- 11 81 (19 87 ); Na fte l v . Co m m is si on er, 8 5 T.C. 5 27 , 52 9 (1 98 5) . The Tax Co urt i s wi th ou t au th or ity to en larg e upo n tha t s ta tu to ry grant . See Ph il li ps Petro le um Co . v. Co m

m is si on er, 9 2 T.C. 88 5, 8 88 (19 89 ). W e n ev erthe le ss ha ve juri sd ic ti on to de te rm in e whe th er we ha ve juri sd ic ti on . Ham

br ic k v . Comm is si on er, 1 18 T.C. 34 8 (2 00 2) ; Pyo v . Co m m is si on er, 8 3 T.C. 6 26 , 63 2 (1 98 4) ; Kl ug er v . Comm is si on er, 8 3 T.C. 3 09 , 31 4 (1 98 4) .

Co di fie d, i n p art , at s ec. 7 62 3( b) . 9 W e d eci de d thi s i ss ue inWhi st le bl owe r 11 33 2- 13 W v. Co m m is si on er, 1 42 1 0 T.C. __(Ju ne 4, 2 01 4) , als o fi le d t od ay .- 7 -

[* 7] OurRu le s ar e si le ntas t o d eci di ng a m ot io n t o d is m is s fo r la ckof s ub ject m at te r juri sd ic ti on . Thu s, we l oo k t o the Fed eral Ru le s o f Ci vi l Pr oc edur e. See Ru le (1) (b ); Es ta te of M il le r v. C omm is si on er, T.C. Mem o. 1 99 4- 25 . Whe n de ci di ng a m ot io n t o d is m is s b as edonlac k o f subjec t m at te r juri sd ic ti on , a co urt m us t co ns tru e th e und is pu te d a ll eg at io ns of the co m pl ai ntina m an ne r fav or ab le to th e p la in ti ff. See Da co st a v . Uni te d S ta te s, 8 2 F ed . Cl. 5 49 , 55 2 (2 00 8) . Whe re juri sd ic ti on tu rn s o n c on te st edfact s, al le ga ti on s i n the pe ti ti on are g en eral ly tak en as tru e fo r pu rp os es of d eci di ng a m ot io n t o d is m is s fo r la ckof juris di ct io n. Se e, e.g ., O’ Bri env. Co m

m is si on er, 4 0 B .T.A. 280 (19 39 ). The i ss ue is whet he r th e cl ai m an t i s en ti tl edto off er ev id en ce t o s up po rt the cla im s, n otwhet he r th e cl ai m an t wi ll ul ti m at el y

pre va il onth e m eri ts . See Sch eu er v . Rho de s, 4 16 U.S. 23 2, 2 36 (19 74 ); s ee al so Reynol ds v. Arm y an d Ai r Fo rce Ex ch . Serv ., 84 6 F .2d 74 6, 7 47 (Fed . Cir . 19 88 ). W e tu rnno w to anov erv ie w of o urjuri sd ic ti on reg ard in g wh is tl eb lo wer cl ai m s. The Secr et ary ha s l on g h adth e d is cret io n t o p ay award s t o p ers on s pr ov id in g i nf

orm at io n tha t ai ds in(1) de te ct in g u nd erp aym en ts of t ax an d (2 ) de te ct in g andbri ng in g t o tria l an d p un is hm en t p ers on s g ui lty of v io la ti ng th e in te rn al rev enue laws . Sec. 7 62 3( a). The di sc ret io na ry whi st le bl owe r award s ha ve be enarb itrary andin co ns is te nt , ho wev er, b ecau se of alac k o f st an da rd iz ed- 8 -

[* 8] pro cedur es an d l im it edm an ag eri al ov ers ig ht . See Trea su ry Ins pe ct orGene ral fo r Tax Adm in is tra ti on Rep ort 2 00 6- 30 -0 92 , The In fo rm an ts ’ Rewar ds Pro gr am Need s M or e Cen tra li zedMan ag em en t Ov ers ig ht(June 20 06 ). It t oo k an a ve rag e of sev eny ears fora di sc ret io na ry awardto be pa idan d an a ve rag e o f si x m on th s fo r a cl ai m

to be reject ed . Id. at8-9 . Mor eo ve r, m os t re jecte d c la im s d idno t pr ov id e th e rat io na le forth e rev ie wer’s d eci si on be cau se of c on cern s ab ou t di sc lo si ng co nf

id en ti al return i nf

orm at io n t o the whi st le bl owe r. Id. at7. Co ng res s en act edTRHCA in20 06 to ad dr es s p erce iv edpro bl em s wi th th e di sc ret io na ry

awardreg im e. TRHCA se c. 40 6( a), 1 20 Stat. at29 58 , am en de d se ct io n 7 62 3 t o re qu ire th e Sec ret ary to pay no nd is cret io nary

whi st le bl owe r award s u nd er ce rta incir cu m st an ces an d t o p ro vi de th is Co urt wi th juri sd ic ti on to rev ie w su chawardde te rm in at io ns . A whis tl eb lo wer i s n ow en ti tl edto a m in im um no nd is cret io na ry

awardof 1 5% o f th e co ll ect edpro ceed s i f th e Co m m is si on er pr oc eed s wi th adm in is tra ti ve or ju di ci al act io n u si ng in fo rm at io n p ro vi de d i n a whi st le bl owe r cl ai m . Sec. 7 62 3( b) (1 ). 1 1 The awardis reduc edincert ai n c irc um st an ces . For e xa m pl e, th e awardis 1 1 reduc edwher e th e whi st le bl owe r pl an ne d o r in it ia te d the act io ns th atledto th e un de rp aym en t o f ta x. Se c. 76 23 (b )(2 ) an d (3 ). Furth erm or e, anawardis av ai labl e on ly if th e in di vi du al tax pa y er h adgro ss in co m e ex ceed in g $ 20 0,0 00 foran y y ear atis su e an d i f th e am ou ntindi sp ut e (i nc lu di ng tax , pen al ti es , add it io ns to tax an d ad di ti on al am ou nt s) ex ceed s $ 2 m il li on . TRHCA sec . 40 6( a)(1 ), 12 0 S ta t. at29 58 .- 9 -

[* 9] TRHCA al so di rect edth e Sec ret ary to is su e g ui da nc e fo r th e o pe rat io n o f a Whi st le bl owe r Offi ce adm in is te redby the IRS. TRHCA sec . 40 6( b) (1 ), 12 0 S ta t. 1 2 at29 59 . The Whis tl eb lo wer Offi ce i s re sp on si bl e fo r rev ie win g s ub m itte d whi st le bl owe r cl ai m s o r as si gn in g the m to th e ap pr op ria te IRS o ffi ce fo r rev ie w. Id . sec . 40 6( b) (1 )(B) , 12 0 S ta t. at29 60 . The Whis tl eb lo wer Offi ce i s au th or iz edto se ekad di ti on al ass is tanc e fro m th e whi st le bl owe r if

ne ces sary . Id. s ec. 40 6( b) (1 )(C) , (2) . The Co m m is si on er re le as edgu id an ce t o t ax pay ers onfil in g no nd is cret io na ry

whi st le bl owe r awardcla im s i n e arl y 20 08 . See No ti ce 2 00 8- 4, 20 08 -1 C.B. 2 53 . Whi st le bl owe rs see ki ng anawardm us t fu ll y co m pl et e an d subm ita Fo rm

21 1. Id . sec . 3.0 2, 2 00 8- 1 C .B. at 2 54 . The Whis tl eb lo wer Offi ce wil l ac kn owl ed ge rece ip t o f th e cl ai m inwrit in g. Id . sec . 3.0 5, 2 00 8- 1 C .B. at 2 55 . The Whi st le bl owe r Offi ce wi ll sen d c orres po nd en ce t o the whi st le bl owe r on ce a de te rm in at io n re ga rd in g the cla im ha s b eenm ad e. Id . sec . 3.1 1, 2 00 8- 1 C .B. at 25 6. Whis tl eb lo wer Offi ce d et erm in at io ns reg ard in g award s m ay be ap pe al edto th is Co urt wi th in30 day s fr om th e is su an ce o f th e n on di sc ret io na ry award de te rm in at io n. Id .; s ee al so sec . 76 23 (b )(4 ). Award s wi ll no t b e p ai d, h owe ve r, The 20 06 leg is la ti on als o re qu ire s the Secr et ary to pro vi de anan nu al 1 2 rep ort t o C on gr es s o n wh is tl eb lo wer cl ai m s fi le d andaward s i ss ue d u nd er s ec. 76 23 . TRHCA sec . 40 6( c), 1 20 Sta t. at29 60 .- 10 -

[* 10 ] un ti l the re i s a d et erm in at io n o f th e ta x l iabi li ty andth e am ou nt s o wedare co ll ect ed . Not ic e 2 00 8- 4, s ec. 3 .08 , 20 08 -1 C.B. at25 5. Th e Co m m is si on er al so is su edpro cedur al gu id an ce o n h ow wh is tl eb lo wer cl ai m s wi ll be pro ces se d. Se e In te rn al Rev enue Man ua l (I RM) pt . 25 .2.2 (Dec. 3 0, 2 00 8) . In g en eral , 1 3 whi st le bl owe r cl ai m s wi ll be de ni edwher e th e in fo rm at io n p ro vi de d d oe s n ot : (a ) id en ti fy a Fed eral tax is su e upo n wh ic h the IRS wi ll act ; (b ) res ul t i n the de te ct io n of anun de rp aym en t o f ta x; or ( c) re su ltinth e co ll ect io n o f pr oc eed s. See id . pt . 25 .2.2 .12 (2 ) (Jun e 1 8, 2 01 0) . The wh is tl eb lo wer wil l b e n ot ifi edby the Whi st le bl owe r Offi ce o nc e anawardde ci si on ha s b eenm ad e. See i d. p t. 25 .2.2 .5(1 3) (Dec. 3 0, 2 00 8) . II. Ana lysis W e m us t n ow d eci de whet he r th e Co urt h as juri sd ic ti on to rev ie w res po nd en t’s awar d d et erm in at io n. Re sp on de ntarg ue s tha t thi s C ou rt d oe s n ot ha ve juri sd ic ti on to rev ie w hi s awa rdde te rm in at io n b ecau se th e whi st le bl owe r pr ov id edth e in fo rm at io n t o the Whi st le bl owe r Offi ce b efo re the en act m en t o f se ct io n 7 62 3( b) . See Wolf v. Co m m is si on er, T.C. Mem o. 2 00 7- 13 3 (h ol di ng th at th e Co urt l ack edjuri sd ic ti on to rev ie w a de te rm in at io n re ga rd in g awhi st le bl owe r In te rn al Rev enue Man ua l p t. 2 5.2 .2 (De c. 30 , 20 08 ) was up da te d o n J un e 1 3 18 , 20 10 , to pro vi de ad di ti on al gu id an ce fo r ev al ua ti ng a whi st le bl owe r cl ai m .- 11 -

[* 11 ] awardbe cau se th e in fo rm at io n was pro vi de d b efo re Dece m be r 20 , 20 06 ). Thu s, re sp on de ntarg ue s tha t thi s C ou rt l ack s juris di ct io n t o re vi ew hi s awa rd de te rm in at io n b ecau se he pro ceed edag ai ns t the tar ge ts us in g i nf orm at io n the whi st le bl owe r pr ov id edbe fo re Dece m be r 20 , 20 06 . The wh is tl eb lo wer arg ue s tha t th is Co urt h as juri sd ic ti onto rev ie w res po nd en t’s awar d d et erm in at io n b ecau se th e whi st le bl owe r al le ge d tha t re sp on de ntpro ceed edag ai ns t the tar ge ts us in g in fo rm at io n the whi st le bl owe r pr ov id edbo thbe fo re an d a fte r Decem be r 20 , 20 06 . See s ec. 7 62 3( b) . W e h ol d tha t the whi st le bl owe r sa ti sf ie d the whi st le bl owe r’s pl ead in g bu rd enby alle gi ng fact s tha t re sp on de ntpro ceed edwith an a ct io n a ga in stth e targ et s u si ng in fo rm at io n b ro ug htto res po nd en t’s at te nt io n b y th e whi st le bl owe r bo th be fo re an d a fte r Decem be r 20 , 20 06 . This is co ns is te ntwith TRHC A’ s i nt en t to pro vi de whi st le bl owe rs with ju di ci al rev ie w of awardde te rm in at io ns . W e n ow tu rnto th e g ov ern in g l aw. A whi st le bl owe r who sat is fie s the requi rem en ts of s ect io n 7 62 3( b) is en ti tl edto rece iv e atlea st15 % bu t n o m or e th an30 % of the co ll ect edpro ceed s o r fro m a se tt le m en t wi thth e ta xp ay er. Add it io na ll y , th e Co m m is si on er m

us t- 12 -

[* 12 ] pro ceed with an a dm in is tra ti ve or ju di ci al act io n b as edonin fo rm at io n

1 4 br ou gh t t o the Co m

m is si on er’s at te nt io n b y

th e whi st le bl owe r. See s ec. 76 23 (b )(1 ). The IR M s ta te s tha t ac ti on by the IRS i nc lu de s the m od ifi cat io n o f a pe nd in g o r pl an ne d e xam in at io n o r in ve st ig at io n a s a r es ul t o f in fo rm at io n pr ov id edby the whi st le bl owe r. IRM p t. 2 5.2 .2 (J un e 1 8, 2 01 0) . Add it io na ll y , th e TaxCo urt h as ex cl us iv e juri sd ic ti on ov er ap pe al s o f award de te rm in at io ns wher e a wh is tl eb lo wer p ro vi de d i nf orm at io n b ot h b efo re an d a fte r th e eff ect iv e d at e o f TRHCA. See, e.g ., Dacos ta , 82 Fed . Cl. at55 4 (d et erm in in g th atth e TaxCo urt h adex cl us iv e juri sd ic ti onov er the whi st le bl owe r’s cl ai m). The Co urt o f Fed eral Cla im s’ dec is io n i n Dac os tais di rect ly on p oi nt . In Dac os tath e co urt d is m is se d the cas e b ecau se th e co urt fo un d tha t the Tax C ou rt h adex cl us iv e juri sd ic ti on ov er the whi st le bl owe r cl ai m an d the co urt co ul d n ottrans fer the cas e to th e Tax Co urt. Id . at 5 57 (refe ren ci ng 28 U.S.C. sec . 16 31 ). Neve rth el es s, the Daco st a co urt’s an al y si s an d ra ti on al e are pe rs ua si ve . In Dac os ta , as h ere, the cl ai m an ts pro vi de d the Co m m is si on er wi th in fo rm at io n b ot h b efo re an d a fte r th e en act m en t o f TRHCA. Id . at 5 51 . The Go ve rn m en t m ov edto di sm is s fo r la ckof The Co m mis si on er’s p ro po se d re gu la ti on s ex pl ai n tha t the term 1 4 “pr oc eed s” in cl ud es when “ th e IRS in it ia te s a n ew act io n tha t i t wo ul d n otha ve in it ia te d, ex pa nd s the sco pe of a n o ng oi ng act io n tha t i t wo ul d n othave ex pa nd ed , orco nt in ue s t o p ur su e anon go in g a ct io n tha t i t wo ul d n otha ve co nt inue d b utfor th e in fo rm at io n p ro vi de d.” 77 Fed . Reg . 74 80 0 (De c. 18 , 20 12 ).- 13 -

[* 13 ] subjec t m at te r juri sd ic ti on an d arg ue d tha t the in fo rm at io n s ub mitte d b y th e cl ai m an ts in20 07 was i de nt ic al to th e in fo rm at io n s ub m it te d i n 2 00 3. Id . at 5 53 . The Gov ern m en t fu rth er ar gu edth at , eve n i f th e cl ai m an ts pro vi de d n ew an d di ffer en t i nf

orm at io n, the Co m

m is si on er d idno t p ro ceedus in g the lat er ap pl ic at io n anddo cu m en ts . Id. The co urt re jecte d the Gov ern m en t’s ar gu m en ts an d d et erm in edth atth e cl ai m an ts all eg edsu ffi ci en t fa ct s t o ava il th em se lv es of se ct io n 7 62 3( b) (1 ) fo r juri sd ic ti on al pu rp os es . Id. at55 4. Th e co urt co nc lu de d th atth e cl ai m an ts ’ al le ge d fa ct s, i f pr ov enat tria l, wo ul d e st ab li sh th atth e Co m m is si on er ac te d o n i nf

orm at io n p ro vi de d b y

th e cl ai m an ts aft er the am en dm en ts to sec ti on 76 23 . Id. The parti es di sp ut e whe th er re sp on de ntpro ceed edag ai ns t the tar ge ts us in g th e whi st le bl owe r’s po st -Dece m be r 20 , 20 06 , in fo rm at io n. Th e whi st le bl owe r’s al le ga ti on s ar e su ffi ci en t t o e st ab li sh juri sd ic ti on . The wh is tl eb lo wer al le ge d tha t th e whi st le bl owe r pr ov id edth e IRS an d the DOJ with i nf orm at io n fr om

at l eas t Octo be r 20 06 th ro ug h J ul y 20 09 . The p os t-De cem

be r 20 06 in fo rm at io n was no t si m pl y co nf irmatory de ta il s. Ra th er, the whi st le bl owe r pr ov id edth e IRS an d the DOJ wit h the fact s tha t fo rm edth e b as is an d g rav am enof r es po nd en t’s ac ti on ag ai ns t the tar ge ts . The wh is tl eb lo wer al le ge d tha t the whi st le bl owe r pr ov id edth e- 14 -

[* 14 ] IRS andth e DOJ wi th th e id en ti ty of do cu m en ts , wire tran sf ers , di sb ur se m en t au th or iz at io ns , in di vi du al s an d e nt it ie s i nv ol ve d i n the trans act io ns . Tak in g the co nt es te d fa ctua l al le ga ti on s i n the pe ti ti on as tru e, th ey est ab li sh th atfro m Octo be r 20 06 th ro ug h J ul y 20 09 th e whi st le bl owe r was inco ns tant co nt actwith the IRS an d the DOJ an d p ro vi de d the m with the ba si s o f an d d et ai ls on th e ta rg et s’ tax av oi da nc e sc he m e. Whe th er re sp on de ntus edth is in fo rm at io n to pro ceedag ai ns t the tar ge ts is no t a que st io n fo r th e p res en t m ot io n. Th e whi st le bl owe r ha s al le ge d s uf fic ie ntjuri sd ic ti on al fact s t o a va il th e whi st le bl owe r of sec ti on 76 23 (b )(1 ) fo r juri sd ic ti on al pu rp os es an d t o o ve rco m e a m ot io n t o di sm is s fo r la ckof juris di ct io n. If the whi st le bl owe r’s al le ge d fa ct s ar e p ro ve d a t tri al , th ey wou ldest ab li shth atres po nd en t p ro ceed edag ai ns t the tar ge ts us in g in fo rm at io n the whi st le bl owe r pr ov id edaft er Dece m be r 20 , 20 06 . If th es e fac ts are e st ab li sh ed , th e whi st le bl owe r is en ti tl edto jud ic ia l re vi ew of res po nd en t’s awardde te rm in at io n. W e h ol d, co ns is te ntwith the rat io na le of Da co st a, th atth is Co urt h as juri sd ic ti on to rev ie w an awardde te rm in at io n wh ere awhi st le bl owe r ha s al le ge d th atth e whi st le bl owe r pr ov id edin fo rm at io n b ot h b efo re an d a fte r th e en act m en t o f se ct io n 7 62 3( b) .- 15 -

[* 15 ] W e h av e co ns id eredall rem ai ni ng arg um en ts th e p art ie s m ad e an d, t o the ex te ntno t ad dr es se d, we co nc lu de th ey are i rrel ev an t, m oo t o r m eri tl es s. Fo r th e fo reg oi ng reas on s, we s ha ll de ny resp on de nt ’s m ot io n t o d is m is s. An ap pr op ria te ord er wi ll be is su ed .