A guest post from Dean Zerbe, senior policy analyst for the National Whistleblower Center and former tax counsel for the Senate Finance Committee.
In February 2018, Congress passed the Bipartisan Budget Act of 2018, requiring the Internal Revenue Service (IRS) to include penalties for Report of Foreign Bank and Financial Accounts (FBAR) violations in calculating whistleblower awards. Prior to this statutory change being signed into law, FBAR violations were not included in the calculation of IRS whistleblower awards.…
Today, the U.S. Department of Justice officially dismissed their appeal of case Whistleblower 21276-13W and 21277-13W v. CIR, Case Nos. 17-1119 and 1120 (D.C. Cir.), marking a big win for IRS whistleblowers. Below is a statement from the whistleblowers’ attorneys.
The law firms of Zerbe, Miller, Fingeret, Frank & Jadav, PC (ZMF); Kohn, Kohn & Colapinto (KKC) and Robert Amsel, Esq. are pleased to announce today a key victory for tax whistleblowers with the filing of a joint stipulation for dismissal of the government’s appeal in the cases of Whistleblower 21276-13W and 21277-13W v. CIR, Case Nos. 17-1119 and 1120 (D.C. Cir.). The case was scheduled for oral argument on April 9, 2018 in the U.S. Court of Appeals for the District of Columbia Circuit. It had pitted the U.S. Department of Justice and IRS against two whistleblowers whose information has led to $54.131 million in criminal penalties and civil forfeitures awarded against a major Swiss bank. The DOJ and IRS were arguing that the tax whistleblower law did not apply to criminal tax cases that resulted in payments of fines and civil forfeitures.
WASHINGTON, D.C. | MARCH 29, 2018—The U.S. Court of Appeals for the District of Columbia Circuit today will dismiss an appeal filed by the U.S. Department of Justice (DOJ) and Internal Revenue Service (IRS) challenging the right of whistleblowers to obtain a financial reward based on disclosing information that results in the criminal prosecution of tax evaders. The case concerned a major international financial institution that was sanctioned for illegally assisting U.S. citizens in evading taxes. The IRS had initially denied an award to the two whistleblowers. The whistleblowers challenged the denial in Tax Court and prevailed. However, the DOJ and IRS challenged this finding in the Court of Appeals. Today, at the request of DOJ, that appeal will be dismissed, and the two whistleblowers will become the first persons to obtain an IRS whistleblower reward based on a criminal tax prosecution.
WASHINGTON, D.C. | February 9, 2018—The Bipartisan Budget Act of 2018, approved today by the U.S. Congress, included two key whistleblower-rights amendments initially introduced by Senator Charles Grassley (R-IA). These amendments ensure that employees who blow the whistle on criminal tax fraudsters are covered under the IRS whistleblower law, and end the double-taxation of whistleblower awards under the Dodd-Frank Act.
Picture this: while at work you become aware of conduct that you believe is unethical, illegal, or qualifies as government waste, fraud, or abuse. You decide you want to blow the whistle. But before you act, be careful! Most corporate and government networks log traffic. Your work computer and phone are not private. When you use a company or department computer, assume everything you do is monitored. These computers are an easy way for your employer to determine you are the whistleblower.
LUXEMBOURG CITY, LUXEMBOURG | January 11, 2018 — A Luxembourg court today has overturned the verdict against a “LuxLeaks” whistleblower who was convicted of leaking thousands of documents that revealed tax breaks for multinational firms. Former PricewaterhouseCoopers (PwC) employee Antoine Deltour was serving a six-month suspended sentence for leaking files related to tax-evasion schemes. …
Last week, the Department of Justice announced that it collected $3.7 billion in settlements and judgements from False Claim Act (FCA) cases against the government in 2017. The FCA is a statute that allows individual whistleblowers, called relators in this context, to file lawsuits on behalf of the government.
Known as Lincoln’s Law, the FCA was originally passed in the Civil War when avaricious contractors supplied the Union with faulty weapons and failing supplies. Over the last decade, FCA cases filed have grown in number and become one of the government’s premier tools for policing corporate fraud.
Washington, D.C. December 16, 2017. The final version of the Tax Cuts and Jobs Bill has eliminated two key provisions to protect whistleblowers who report major criminal tax frauds.
The National Whistleblower Center today issued an Action Alert asking the American public to oppose the tax bill based on the elimination of these two critical anti-fraud protections.…