The Supreme Court has chosen not to review the dismissal of a lawsuit brought forth by three whistleblowers alleging that the IRS failed to investigate their assertion that institutional mortgage lenders were not adhering to regulations.
The highest court in the nation declined to grant the request for review in Stone v. Commissioner of Internal Revenue, as per an unsigned order issued on April 1. There were no dissenting opinions among the justices. The court did not provide any reasoning behind its decision. The justices deliberated on the petition during their private conference on March 28.
In order for a petition to proceed to the oral argument phase, it requires the support of at least four out of the nine justices.
David E. Stone, Thomas Carroll, and David C. Depadro alerted the IRS that multiple real estate mortgage investment conduits (REMICs), financial entities used by lenders to manage a portfolio of mortgages and issue mortgage-backed securities, were not adhering to tax exemption regulations. Following Mr. Carroll’s passing, his wife, Kari S. Carroll, assumed his role as petitioner in the legal case.
Americans collectively owe $12.1 trillion on 84 million mortgages, constituting 70.2 percent of the total consumer debt in