Washington, D.C. November 15, 2017. Senator Charles Grassley (R-IA) has put forth two amendments to the Tax Cuts and Jobs Bill that are important to whistleblowers.

The major amendment addresses an issue that has been the subject of previous posts, defining the term “collected proceeds” in I.R.C. section 7623(b).  The IRS and Department of Justice have taken the position whistleblowers who report criminal tax frauds, such as the numerous crimes committed by the largest Swiss banks, cannot obtain a whistleblower reward. They have argued that whistleblower rewards should not be paid on any criminal fines. Continue Reading Proposed Grassley Amendment Important for Whistleblowers

The Justice Department is appealing the Tax Court’s decision in Whistleblower 21276-13W v. Commissioner and Whistleblower 21277-13W v. Commissioner, 147 T.C. No. 4 (2016). This case arose after two courageous whistleblowers stood up to the Swiss banks and exposed how the banks helped U.S. millionaires and billionaires illegally evade taxes.  These whistleblowers won a hard fought victory in Tax Court—which ruled that whistleblowers who report criminal violations of the tax laws are fully protected under the IRS whistleblower program.

Prior to this decision, there was ambiguity about whether “collected proceeds” from criminal violations would be included in calculating IRS whistleblower rewards. The consequences of this Tax Court decision on the issue are massive. The largest tax fraud cases inevitably include criminal fines and penalties, and are often primarily criminal in nature. If criminal violations were excluded from the whistleblower reward calculation, the IRS program would not incentivize those whistleblowers with the most important information about the largest tax evasion schemes to report violations.

Continue Reading DOJ’s Decision to Appeal Tax Whistleblower Case Will Weaken the Federal Government’s Ability to Detect Fraud

In a press release issued today, attorneys for a husband and wife tax fraud whistleblowers, expressed optimism that President Trump’s pick for Secretary of Treasury Steve Mnuchin would show support for the IRS Whistleblower Office by not appealing a the Tax Court’s decision in Whistleblower 21276-13W v. CIR (147 TC 4).

The full press release is reprinted below: Continue Reading IRS Whistleblower Advocates Hopeful New Administration Upholds “Collected Proceeds” Tax Court Decision

The  following is an editorial from the National Whistleblower Center:

On August 3, 2016 the U.S. Tax Court ruled that tax whistleblowers were entitled to a reward based on monies collected in criminal fines and penalties. This landmark decision reversed the position of the Department of Treasury that severely limited the “collected proceeds” upon which a whistleblower reward could be based. Continue Reading Four-Year Campaign Results In Historic-Win For Tax Whistleblowers

Whistleblower Advocates Submit Extensive Comment  in Response to Proposed IRS Regulations

Yesterday, the National Whistleblower Center ("NWC"), the National Whistleblowers Legal Defense and Education Fund ("Fund"), Bradley Birkenfeld, Scott Rosen, and Gene Ross jointly submitted a comprehensive 84-page comment on the IRS’s proposed rules for its whistleblower office (26 CFR Part 301 [Reg-141066-09]).  Click here to view their comment.

The critical issues addressed in the joint submission include: 

  • IRS rules that would severely restrict the scope of the IRS whistleblower program by limiting "collected proceeds" to violations of Title 26 only. The joint comment states that the statute was intended to cover all violations enforced by the IRS, even if they are in Title 31 or Title 18. A strong whistleblower program is needed to prevent tax fraud related to offshore banking.

Continue Reading IRS On Verge Of Crippling Whistleblower Program