Opinion
17543-19W
11-26-2024
WHISTLEBLOWER 17543-19W, DECEASED, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Kathleen Kerrigan, Chief Judge
On September 23, 2019, petitioner filed the Petition to commence this whistleblower case pursuant to I.R.C. section 7623. On September 27, 2019, petitioner filed a Motion to Proceed Anonymously. By Order dated March 16, 2020, the Court granted petitioner's Motion to Proceed Anonymously. Thereafter, on March 4, 2022, the proceedings in this case were stayed pending the resolution of certain jurisdictional issues in whistleblower cases pending before the U.S. Court of Appeals for the District of Columbia Circuit. Proceedings in this case currently remain stayed.
On November 29, 2023, respondent filed a Status Report which, among other things, informed the Court that petitioner had died. On October 31, 2024, Kristin Carmody, petitioner's surviving spouse, filed a Motion to Substitute Parties and Change Caption, requesting that in her capacity as executrix of petitioner's estate she be permitted to prosecute this case on petitioner's behalf and also to remain anonymous. By Order and Order to Show Cause issued November 4, 2024, the Court directed (1) Ms. Carmody to file a supplement to her motion and attach thereto copies of the letters testamentary demonstrating her appointment as executrix of petitioner's estate and (2) the parties to show cause in writing why, in light of petitioner's death, the Court should not lift or otherwise modify our Order granting petitioner's Motion to Proceed Anonymously and change the caption of this case to reflect the real names of petitioner and his estate's representative.
On November 7, 2024, Ms. Carmody filed a First Supplement to Motion to Substitute Parties and Change Caption, which consisted of a copy of the letters testamentary issued to Ms. Carmody. Also on November 7, 2024, Ms. Carmody filed a Memorandum in Support of First Supplement to Motion to Substitute Parties and Change Caption in which she stated that she no longer seeks continued anonymity for petitioner or for herself in this case. On November 22, 2024, respondent filed a Response to the Court's Order to Show Cause, stating his position that, as petitioner had died and was no longer subject to economic harm or social alienation because of his status as a whistleblower, neither petitioner nor Ms. Carmody as petitioner's estate's representative should be allowed to proceed anonymously.
In Insinga v. Commissioner, 157 T.C. 94 (2021), the Court held that the death of a petitioner-whistleblower who has filed a Tax Court petition that is pending at time of his death does not extinguish Tax Court's jurisdiction over the petition and pending whistleblower claims survive the death of claimants. We will, therefore, grant Ms. Carmody's motion insofar as she seeks in her capacity as executrix of petitioner's estate to be substituted for petitioner in this case. However, we note that the balance of the petitioner's need for anonymity and the public's interest in open judicial proceedings in this case has shifted due to the death of petitioner, See Whistleblower 12568-16W v. Commissioner, 148 T.C. 103 (2017). We will accordingly modify the Order granting petitioner anonymity.
Upon due consideration, it is
ORDERED that the Court's Order to Show Cause, issued November 4, 2024, is hereby made absolute. It is further
ORDERED that the Court's Order dated March 16, 2020, is modified in that petitioner's identity is no longer entitled to protection, although the target taxpayer's identity remains protected. All documents filed under seal shall remain sealed. It is further
ORDERED that the temporary seal on the unredacted Motion to Substitute Parties and Change Caption, filed October 31, 2024, is lifted. It is further
ORDERED that the Motion to Substitute Parties and Change Caption, filed October 31, 2024, and supplemented November 7, 2024, is granted in that the Estate of Patrick J. Carmody, Deceased, Kristin A. Carmody, Executrix, is substituted for petitioner in this case. It is further
ORDERED that the caption of this case is amended to read: "Estate of Patrick J. Carmody, Deceased, Kristin A. Carmody, Executrix, Petitioner(s) v. Commissioner of Internal Revenue, Respondent". It is further
ORDERED that the proceedings in this case shall continue to be stayed pending further direction of the Court. It is further
ORDERED that, although the proceedings are currently stayed, on or before March 25, 2025, the parties shall file a written report (preferably a joint report) concerning the then-current status of this case, as well as the cases of Kennedy v. Commissioner, No. 21-1133, and Meidinger v. Commissioner, No. 22-1239, which are currently pending before the U.S. Court of Appeals for the District of Columbia Circuit.