PUBLIC LAW 109–432—DEC. 20, 2006
120 STAT. 2959
and initiated the actions that led to the underpayment of tax or actions described in subsection (a)(2), then the Whistleblower Office may appropriately reduce such award. If such individual is convicted of criminal conduct arising from the role described in the preceding sentence, the Whistleblower Office shall deny any award. ‘‘(4) APPEAL OF AWARD DETERMINATION.—Any determination regarding an award under paragraph (1), (2), or (3) may, within 30 days of such determination, be appealed to the Tax Court (and the Tax Court shall have jurisdiction with respect to such matter). ‘‘(5) APPLICATION OF THIS SUBSECTION.—This subsection shall apply with respect to any action— ‘‘(A) against any taxpayer, but in the case of any individual, only if such individual’s gross income exceeds $200,000 for any taxable year subject to such action, and ‘‘(B) if the tax, penalties, interest, additions to tax, and additional amounts in dispute exceed $2,000,000. ‘‘(6) ADDITIONAL RULES.— ‘‘(A) NO CONTRACT NECESSARY.—No contract with the Internal Revenue Service is necessary for any individual to receive an award under this subsection. ‘‘(B) REPRESENTATION.—Any individual described in paragraph (1) or (2) may be represented by counsel. ‘‘(C) SUBMISSION OF INFORMATION.—No award may be made under this subsection based on information submitted to the Secretary unless such information is submitted under penalty of perjury.’’. (2) ASSIGNMENT TO SPECIAL TRIAL JUDGES.— (A) IN GENERAL.—Section 7443A(b) (relating to proceedings which may be assigned to special trial judges) is amended by striking ‘‘and’’ at the end of paragraph (5), by redesignating paragraph (6) as paragraph (7), and by inserting after paragraph (5) the following new paragraph: ‘‘(6) any proceeding under section 7623(b)(4), and’’. (B) CONFORMING AMENDMENT.—Section 7443A(c) is amended by striking ‘‘or (5)’’ and inserting ‘‘(5), or (6)’’. (3) DEDUCTION ALLOWED WHETHER OR NOT TAXPAYER ITEMIZES.—Subsection (a) of section 62 (relating to general rule defining adjusted gross income) is amended by inserting after paragraph (20) the following new paragraph: ‘‘(21) ATTORNEYS FEES RELATING TO AWARDS TO WHISTLEBLOWERS.—Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623(b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer’s gross income for the taxable year on account of such award.’’. (b) WHISTLEBLOWER OFFICE.— (1) IN GENERAL.—Not later than the date which is 12 months after the date of the enactment of this Act, the Secretary of the Treasury shall issue guidance for the operation of a whistleblower program to be administered in the Internal Revenue Service by an office to be known as the ‘‘Whistleblower Office’’ which—
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26 USC 7443A.
26 USC 7623 note. Deadline. Guidance.
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