On June 24, two whistleblower law firms, Kohn, Kohn & Colapinto and Zerbe, Miller, Fingeret, Frank & Jadav, working together at the Tax Whistleblower Attorney Group (TWAG), announced that the Internal Revenue Service (IRS) had issued a $20 million whistleblower award to clients of the firms.
“Today is good news for all honest taxpayers,” stated Stephen M. Kohn, founding partner of Kohn, Kohn & Colapinto. “Thanks to our client, a courageous whistleblower, the IRS collected over $88 million in taxes from eighty millionaires seeking to evade taxes.”
Through the IRS Whistleblower Program, qualified whistleblowers are entitled to monetary awards of 15-30% of the funds collected in the enforcement action connected to their whistleblowing. The IRS weighs a number of factors in determining the exact percentage to award a whistleblower.
“As important as the direct result of the whistleblower’s actions resulting in $88 million in taxes being collected, equally important is the deterrent impact on those thinking about cheating on their taxes,” Kohn added. “A strong tax whistleblower award program brings dollars in directly but as much, if not, more dollars indirectly through improved compliance by taxpayers.”
“The award of $20 million dollars is well-deserved for this whistleblower – whose efforts have benefitted all Americans,” said Dean Zerbe of Zerbe, Miller, Fingeret, Frank & Jadav. “I am especially appreciative of the leadership of the new Director of the IRS Whistleblower Office (WBO), Mr. Erick Martinez and his capable team at the WBO in making this award happen. Thanks also to IRS Commissioner Billy Long for his support of the IRS whistleblower award program as well as the Trump administration for its vocal support for awards to whistleblowers, including tax whistleblowers. Particular thanks to the IRS examiners and investigators who saw the value of the whistleblowers’ information and pulled oars to help ensure that these millionaires pay their taxes.”
Kohn and Zerbe have represented a number of notable tax whistleblowers, including Brad Birkenfeld, the UBS whistleblower who received an award of $104 million from the IRS in 2012.
Kohn and Zerbe are calling on Congress to pass reforms to further strengthen the IRS Whistleblower Program.
“Today’s award reinforces how vital it is that the Congress take action on the bipartisan IRS Whistleblower Program Improvement Act,” Kohn said. “While the IRS Whistleblower Program is seeing good success, the possibilities are for even greater success in addressing tax evasion. The commonsense reforms in the IRS Whistleblower Program Improvement Act – including de novo tax court review and ending sequestration of awards — will encourage more informed and knowledgeable whistleblowers to come forward. I commend Senators Grassley (R-IA) and Wyden (D-OR) as well as Chairman Crapo (R-ID) for their leadership on this legislation and encourage that the reforms be passed this Congress.”
“The IRS whistleblower program is a proven way for the IRS to make efficient use of limited audit and examination resources,” Zerbe added. “ The IRS whistleblower program not only benefits honest taxpayers by bringing revenues into the Treasury from those seeking to evade tax, as important, the IRS whistleblower program helps target IRS examination and investigators on known tax cheats. This better targeting of IRS exam resources, thanks to the IRS whistleblower program, means that the vast majority of honest taxpayers are not bothered by unnecessary calls and letters from the IRS. As the new leadership at Treasury and the IRS looks for efficiencies and improvements at the IRS – the tax whistleblower program is a key to that success.”
On June 13, the National Whistleblower Center (NWC) sent a letter to the Senate Finance Committee urging for the provisions of the bipartisan IRS Whistleblower Improvement Act to be included in the budget reconciliation bill being debated in the Senate.
During a recent appearance on the Whistleblower of the Week podcast, Zerbe explained the need for the reforms provisions found in the IRS Whistleblower Improvement Act.
National Whistleblower Center has set up an Action Alert allowing individuals to write to their members of Congress urging them to pass the reforms to strengthen the IRS Whistleblower Program.
