Patrick v. Comm'r
United States Tax Court
P-H received two monetary awards for bringing qui tam complaints filed under the False Claims Act (FCA), 31 U.S.C. sec. 3730 (2006). Ps reported the awards as capital gains. R issued a deficiency notice that disallowed capital gains treatment and characterized the awards as other income.
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P-H received two monetary awards for bringing qui tam complaints filed under the False Claims Act (FCA), 31 U.S.C. sec. 3730 (2006). Ps reported the awards as capital gains. R issued a deficiency notice that disallowed capital gains treatment and characterized the awards as other income. R contends that a qui tam award does not result from the sale or exchange of a capital asset, citing I.R.C. sec. 1222(1), (3). Ps contend that under the FCA the relator sells information to the Government in exchange for a share of any recovery. Ps further argue that the right to receive a share of the…
1Opinion of the Court
CRAIG PATRICK AND MICHELE PATRICK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Patrick v. Comm'r
Docket No. 16387-12.
United States Tax Court
142 T.C. 124; 2014 U.S. Tax Ct. LEXIS 5; 142 T.C. No. 5;
February 24, 2014, Filed
Decision will be entered for respondent.
P-H received two monetary awards for bringing qui tam complaints filed under the False Claims Act (FCA), 31 U.S.C. sec. 3730 (2006). Ps reported the awards as capital gains. R issued a deficiency notice that disallowed capital gains treatment and characterized the awards as other income.
R contends that a qui tam award does…
2Cases cited19 opinions
- Vermont Agency of Natural Resources v. United States Ex Rel. StevensSupreme Court of the United States · 2000
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. BrownSupreme Court of the United States · 1965
- National Railroad Passenger Corp. v. Atchison, Topeka & Santa Fe Railway Co.Supreme Court of the United States · 1985
- Helvering v. William Flaccus Oak Leather Co.Supreme Court of the United States · 1941
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