In April 2011, the IRS Whistleblower Office paid its first whistleblower reward, more than $4.5 million to a Young Law Group client. A CPA in-house accountant and auditor who discovered a $20 million-plus tax liability at a large national financial services firm, which the Fortune 500 company then declined to report, was given the third highest category of IRS whistleblower reward under the new law, 22 percent.
“This groundbreaking IRS $4.5 million reward originated like many of our government fraud whistleblower cases in healthcare, defense contracting, pharmaceutical sales and marketing, and other sectors,” Young Law’s Eric L. Young explained.
“Our client discovered that the financial services firm was failing to pay taxes but after speaking up was simply ignored. As such, the right thing was done in deciding to report this employer’s tax misconduct to the IRS,” Young said.
For tax and qui tam whistleblowers this case clearly underscores the importance of working with an experienced whistleblower lawyer, Young explained. Why? Young revealed that his client originally had filed an IRS “Form 211” with the new Whistleblower Office without counsel, known legally as “pro se”. When more than two years had expired since the original filing and no IRS response had been received after numerous client inquiries, the client reached out to Young, an experienced whistleblower attorney in state and federal courts. After assessing the client’s case and concluding that it indeed appeared to be in limbo, Young immediately contacted the IRS Whistleblower Office. He determined that his client had never received a “Claims Number” after the original Form 211 filing. Assigning this number is only the first step in IRS whistleblower procedure, Young explained.
“In our subsequent contacts with the Whistleblower Office we provided the original case documents and information that fully exposed the financial services firm’s tax misconduct. We also clearly and convincingly demonstrated to the IRS Whistleblower office how effective our client’s efforts were in advancing this case,” Young said.
“As a result, we believe our efforts enabled our client to earn this enhanced, 22 percent reward in America’s first IRS Whistleblower case under the new program,” Young said.
The Tax Relief and Health Care Act of 2006 required the IRS to set up a Whistleblower Office by December 2006 and then pay rewards to tax whistleblowers. Prior to this legislation, now Section 7623 of the Internal Revenue Code, the IRS had the option to pay rewards to individuals it previously referred to as “informants.”
Young Law Group, P.C., represents whistleblowers nationwide. For a free confidential consultation, please call Eric L. Young, Esquire at (215) 367-5151 or email to firstname.lastname@example.org.