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IRS Hands Out First Whistleblower Award For Reporting Tax Fraud

April 11, 2011 by  

IRS hands out first whistleblower award for reporting tax fraudSquealing on a superior has landed a Pennsylvania accountant a multi-million dollar award.

According to The Associated Press, an in-house accountant has been bestowed the first ever whistleblower award, worth approximately $4.5 million, from the Internal Revenue Service (IRS). The recipient, whose name has been withheld by his attorney, filed a complaint in 2007 after his employer ignored a tax lapse. The tip helped the IRS recover $20 million in taxes and interest.

The award, which equates to about $3.24 million after taxes, represents a 22 percent cut of the revenue recovered by the IRS. The Whistleblower Office, which was set up in 2006, mandates that payouts should amount to between 15 and 30 percent of the taxes recouped, the media outlet reported.

The Whistleblower Office revealed that it received nearly 1,000 tips in fiscal years 2008 and 2009.

"It's very difficult to be a whistleblower," Eric Young, the Pennsylvania accountant's lawyer, told the news source. "Most people would be inclined to turn a blind eye to it. The process can be time-consuming, arduous and stressful, from both a personal and professional standpoint."

A gridlock on Capitol Hill has forced the IRS to address a more pressing issue this week. In the event of a government shutdown, which was slated to occur if Congress did not approve a spending budget by April 8, refunds for taxpayers would be delayed, officials have confirmed.

Speaking to the National Press Club on April 6, IRS Commissioner Doug Shulman said that a shutdown would slow the process of responding to paper returns, according to Bloomberg. However, Shulman stated that a budget standoff will not delay the April 18 deadline for filing 2010 taxes.

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  • Frankye Naylor

    I left comments and you destroyed it. Did it not agree with you?

    • Bob Livingston

      Dear Frankye Naylor,

      We do not edit or delete comments unless they violate the terms of use policy above. I don’t find your comments in our filters, so I’m not sure why they didn’t appear. I assure you, we did not “destroy” them. Please post them again. As long as they contain no racism, profanity, or incivility or more than one link they should appear.

      Best wishes,

  • Kilgore Trout

    It is certainly a shame that a whistle-blower has to take the IRS to court not just so much to get his award, but, to get the IRS to take action on the information he gave them.

  • everett

    seems like what Hitler had done, praising the whistle blowers, especially if turning in ones own parents !!!

  • http://com i41

    The marxist muslim moron in Cheif has to keep people liking him, since Donald Trump is keeping the heat on about where the muslim was really born at. Need to put a simple consumption tax, end the crap of accounting mess and it is collected when something is sold. No Congressional and agency meddling, or giving passes to groups, more you spend the more you pay. Probably something liberial socialist dumbocraps don’t understand, they need to be educated on KISS system, Keep It Simple Stupid, a concept not taught in business colleges or law school, they like something convoluted and corrupt.

  • jopa

    I don’t like squealers or tax cheats.However if the IRS gets the big cuts in its funding we will probably need more squealers.

  • just a thinker

    everett is beginning to see what is happening…

  • http://com i41

    Noticed when all the Onumnutts appointee got nailed for tax cheating the taxpayers sure didn’t benifit a dime. Rangel, Dacshle, Geithner, and Clinton’s sure never paid any fines, but we forget dems write the laws and get a pass on abiding by the rules.

  • Vigilant

    The IRS has no right to squander OUR money on a whistleblower lottery.

    Whistleblowing to the tune of divulging a $20 million tax fraud is the right thing to do. Increasing our tax burden by $4.5 million so some person can live out their life in luxury should be ILLEGAL.

    $20 million was due to the Treasury, $20 million should have been collected, period.

    • Annie M.

      I whole-heartedly agree that a whistleblower should not get money except for time off to go to court if necessary to testify about the case.


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