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

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

January 19th, 2017, today, the Senate Finance Committee held a hearing to consider President-Elect Trump’s pick for the Secretary of the Treasury, Steven Mnuchin. The National Whistleblower Center asked its supporters to insist that the Senators of the Finance Committee use the hearing to find out whether or not Mr. Mnuchin was committed to protecting whistleblowers who report to the IRS.

Continue Reading

Washington, D.C. March 15, 2016. The Tax Court in Whistleblower 22716-13W v. CIR(146 TC 6) decided March 14, 2016 held that the term “additional amounts” as used in 7623(b)(5)(B) does not include FBAR civil penalties.  FBAR civil penalties are a penalty commonly imposed by the IRS on individuals with illegal offshore accounts.


Continue Reading