first_imgThe IRS was required to produce documents concerning its decision not to make a whistleblower’s award. The IRS failed to show that the documents were not relevant or probative and, therefore, not discoverable.The whistleblower alleged the IRS derived leads from the investigation it undertook on the basis of his information and that those leads led the IRS to make adjustments to the target’s reported income for the two years at issue. The whistleblower’s case, grounded on the legal theory that the IRS collected proceeds from the target on the basis of his information, was well pleaded and not obviously contradicted by Code Sec. 7623(b)(1).Moreover, the validity of Reg. §301.7623-1 has not yet been tested and the IRS did not argue that it applied. Therefore, the interpretive question raised by the IRS’s relevance objection was not appropriately before the court during a discovery dispute. If the IRS was interested in a pretrial ruling on a matter of law, then the proper course of action would be to file a motion for summary judgment.Whistleblower 11099-13W, 147 TC —, No. 3, Dec. 60,660Other References:Code Sec. 7623CCH Reference – 2016FED ¶42,957.40Tax Court Rule 72CCH Reference – 2016FED ¶42,232.77Tax Research ConsultantCCH Reference – TRC IRS: 63,060.05last_img

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