July 13, 2018
IRS Fraud Office Pays First Major Whistleblower Reward
Editor’s note: Thanks to the False Claims Act, IRS-related fraud is being reported and exposed more than ever due to the brave efforts of whistleblowers – who then get rewarded for their actions. This older blog post is from our Qui Tam archives and is worth viewing and reading again.
Three years ago, the Internal Revenue Service established an office that would allow whistleblowers to report information on big tax fraud scams and receive rewards. For the first time, it appears as if the IRS is paying out a substantial reward.
The Wall Street Journal reports that the IRS Office paid $5.5 Million in reward money to a whistleblower who reported tax fraud among several companies. More money is still possible as the IRS continues to investigate and resolve claims involving the accused companies.
The case began nearly eight years ago and involved international stock and tax fraud scenarios, completed in part by an international corporate conglomerate. It is reported that the case recovered over $60 million in unpaid taxes so far.
This award is the first major IRS payout to a whistle blower, but gives future whistleblowers and their attorneys confidence that the relatively new program is working, according to Dean A. Zerb, a former fraud investigator and key player in creating the new IRS office.
Berg & Androphy has an entire practice area dedicated to “whistleblowers” and Qui Tam lawsuits. Please visit our website page on Qui Tam videos produced for B&A to learn more about the legal rights, responsibilities, and protections for whistleblowers in this area of the Law.