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Iowa State Representative Speaks Out Against the Murphy Decision

Back in April, when the Supreme Court denied certiorari for Murphy v. IRS, a lot of people were upset. Whistleblowers and other civil rights leaders knew that the DC Court of Appeals' terrible opinion (ruling that the 16th Amendment of the Constitution gives government the power to tax court-awarded compensatory damages as if they were income) was a slap in the face to victims of discrimination. We knew that this ruling would be a disincentive for people to blow the whistle or report civil rights violations.


We are finding out that we aren't the only ones who disagreed with the decision. There are a lot of scholars out there who feel that income tax itself is illegal under the Sixteenth Amendment, and they are speaking up as well. One of these individuals is a state representative from Ohio named Phil Hart, who wrote this article on the Murphy decision. Although Mr. Hart disagrees with the DC court for different reasons than the whistleblower/civil rights community, his article rightly points out how the "Murphy Court" disgracefully bowed to political pressure when they flip-flopped from their original decision (which was in favor of Ms. Murphy) to a more pro-government stance. 

 

Government Requests 30-Day Extension in Murphy v. IRS

Today we learned that the U.S. Government will receive a 30 day extension from the U.S. Supreme Court to file their reply brief in Murphy v. IRS (More on Murphy v. IRS here).  This is the Solicitor's second 30 day extension, giving the government until March 17th to file the brief. Maybe they are banking on the luck of the Irish...or possibly they haven't been able to make sense of the Appeals court's decision yet either...

We will keep you posted. 

Update on Whistleblower Tax Case, Murphy v. IRS

Seal of the U.S. Supreme CourtLast month we reported on a key Whistleblower/Civil Rights tax case that was filed with the Supreme Court by attorneys working with the National Whistleblower Center. See Whistleblowers Blog (December 13, 2007). The case is Murphy v. IRS, No. 07-802 (Supreme Court), and the principal issue is whether the IRS can tax as income plaintiffs' court awards for non-physical compensatory damages, such as make whole awards for emotional distress and loss of reputation.


Since the petition for a writ of certiorari was filed on December 13, 2007, the Solicitor General has requested and received an extension of the time for the government to file a response to Ms. Murphy's cert petition. A copy of the Solicitor General's request is available here, and a copy of the order granting the request is here.


**Also, a brief update on the status of the case was reported in today's Wall Street Journal.

Key Whistleblower Tax Case Filed in the Supreme Court

The National Whistleblower Center announced today that a major Whistleblower/Civil Rights tax case has been filed with the Supreme Court. The case, Murphy v. IRS, has generated a lot of attention in the past year, and certainly puts forth questions that beg a grant of certiorari.

At the heart of the case is whether the IRS has the constitutional right to tax plaintiffs' court awards for non-physical compensatory damages, such as emotional distress and loss of reputation.  

The case was brought by Marrita Murphy, an environmental whistleblower who won her case before the Department of Labor, and was awarded compensatory damages to vindicate her rights under six federal environmental whistleblower statutes. Murphy filed suit when that IRS demanded that she pay taxes on the "make-whole" award.

Murphy v. IRS has the potential to affect thousands of past and future victims of civil rights violations and whistleblower retaliation.

 

UPDATE 1/16/08: To see the latest on Murphy v. IRS, click here 

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