Today STJ Daniel A (“Yuda”) Guy brings us the story of Whistleblower 15977-18W, 2021 T. C. Memo. 143, filed 12/29/21*, hereinafter known as Blower 159. You can only get Blower 159’s tale on this my blog after today, as the Genius Baristas have sealed the whole show.

Turns out the target, US-born to foreign nationals and now a prominent citizen of parents’ domicile Ruritania (which the unimaginative litigants call Country X, unaware of Anthony Hope and Rudolph Rassendyll), has neither US passport nor SSAN (no mention of ITIN, EIN, or TIN). Blower 159 cannot find any signs that Target (hereinafter “Rudy”) availed himself of any of the privileges and immunities (to say nothing of the “blessings of liberty to ourselves and our posterity”), and neither can the Ogden Sunseteers.

The OS did get a classifier from SB/SE, who decided Blower 159’s info was not credible. The Award Recommendation Memorandum (ARM) says “WB did not provide bank statements, financial records, or source documents that would allow the Service to determine amounts, tax years, where business income was allocated, (related entities?), nature or validity of the allegation, etc.” 2021 T. C. Memo. 143, at p. 6. Rudy’s off the radar.

Blower 159, petitioning the shootdown, wants a remand to “perfect” his claim. STJ Yuda says he can try again, from scratch.

“Section 301.7623-1(c)(4), Proced. & Admin. Regs., provides in relevant part that, if the whistleblower does not provide specific and credible information, the WBO has the discretion to reject the claim or inform the whistleblower of any deficiencies and provide the whistleblower an opportunity to perfect the claim for award. The regulation goes on to state that, if the WBO rejects the whistleblower’s claim for lack of specific and credible information, as was the case here, the whistleblower may perfect and resubmit the claim. Id.; see Rogers v. Commissioner, 157 T.C. 20, 29-30 (2021); Lacey v. Commissioner, 153 T.C. at 161 n.15. Under the circumstances, petitioner may elect to perfect and resubmit the claim to the WBO, but the WBO is not obliged to permit petitioner to do so within the context of this action.” 2021 T. C. Memo. 143, at p. 12.

Note that the epistolary volleying I so often blogged in the past, though it has led to the OS labeling its shootdowns as “‘FINAL DECISION UNDER SECTION 7623(a)'”, 2021 T. C. Memo. 143, at p.7, goes on in different guise, as there’s no SOL and apparently no user fee for filing Form 211, so serial blowing can go on apace (hint to that compleat angler Mr. Lee Martin, Chief Whistler).

STJ Yuda gives me a belated Christmas present in denouncing a pet peeve of mine: “We note that the final decision at issue in this case uses the ambiguous ‘and/or’ formulation that often makes it difficult to discern the WBO’s reasoning.” 2021 T. C. Memo. 143, at p. 9. Thanks, Judge; maybe if the Tax Court bench smites the OS with friendly rebuke a couple more times (hi, Judge Holmes, Happy New Year), they may get the message.

Anyway, Blower 159 loses summary J. Record is clear enough for STJ Yuda to find a rational basis for the shootdown. IRS’ move to amend their answer to allege Blower 159 didn’t clear the $2 million bar (Section 7623(b)(5)(B)) is denied as moot.

Takeaway 1- If born here and don’t want world-wide taxation, go away and stay away.

Takeaway 2- Blowers, take heart. There’s always another day and another Form 211.

*Whistleblower 15977-18W 12 29 21