Whistleblower Partners is proud to announce that the IRS Whistleblower Program has awarded our client, along with two other whistleblowers, a maximum 30% reward in the total amount of $79 million for helping expose and shut down a longstanding and complex tax fraud. It is one of the largest awards in program history. Because of the information provided by the whistleblowers, the government recovered $263.7 million in unpaid taxes, penalties, and interest from the taxpayer.

In a sign of the magnitude of the case, as well as of the improving IRS program, the $79 million awarded is more than all awards paid to IRS whistleblowers in fiscal years 2021 and 2022 combined, and it rivals the $88.8 million in total awards paid to 121 different whistleblowers in 2023. Likewise, the government’s $263.7 million recovery in this case exceeds all amounts collected based on whistleblower information in fiscal year 2021 or 2022.

In issuing the awards at the maximum award percentage allowed, the IRS found that the whistleblowers' information was unlikely to be detected through ordinary examination methods. The information further identified connections between complex transactions and parties to expose the fraudulent tax scheme, and the whistleblowers provided exceptional cooperation and assistance to the government’s investigation, leading to its successful recovery.

This historic award comes at a major turning point for the IRS whistleblower program. From the time John Hinman took over as the Director of the IRS Whistleblower Office in May 2022, the IRS has seen a steady rise in both recoveries based on whistleblower information and awards paid to whistleblowers—in terms of both absolute dollars and as a percentage of IRS recoveries. The whistleblower office has also prioritized speeding up the award process, which has previously dragged on for years, making this case a significant testament to the new direction of the whistleblower office. Even though the taxpayer at issue had fully paid the government and waived any further challenges or appeals, this award could have faced extensive delay under old IRS practices.

Whistleblower Partners attorneys Michael Ronickher, Chris McLamb, and Eric Havian represented our client in this matter, with significant contributions from paralegal Karen Yang.

“The whistleblower office should be commended for developing a novel collaborative approach to pay this award faster by avoiding a years-long administrative process and potential litigation,” said attorney Mike Ronickher. “Our client showed true integrity and courage, and we are delighted that their contributions are being acknowledged in a way that should motivate others to step forward.”

Chris McLamb added: “This is a historic award not only for our client, who helped return hundreds of millions of dollars to the U.S. Treasury, but also the IRS whistleblower office. After languishing for several years, the IRS whistleblower program has never shown more promise. We foresee more large whistleblower awards in the years to come.”

We and our client are immensely grateful to the IRS whistleblower office team that helped facilitate this award, as well as the government attorneys and investigators who used the whistleblowers’ information to bring this case to a successful resolution.

In addition, we and our client were fortunate to find great partners in the other whistleblowers and their counsel. All three whistleblowers have chosen to be anonymous at this time, but each significantly contributed to this successful outcome. We are especially grateful to Neil V. Getnick, Margaret J. Finerty, and Richard J. Dirks at Getnick Law LLP, who represented one of the other whistleblowers and worked diligently and collaboratively with us and the whistleblower office to achieve a historic outcome for our clients and the program.

***

Whistleblower Partners has deep experience shutting down tax frauds. Our team includes a former Department of Justice tax attorney, a former member of the IRS whistleblower office, and a law professor specializing in complex tax shelters. We have dozens of claims pending under the IRS Whistleblower Program, covering a wide variety of individual and corporate tax schemes. Our attorneys also regularly consult with the IRS whistleblower office and have written extensively about the whistleblower program in The Washington Post, Fortune, and other major publications. We have the skill and experience necessary to explain complex tax scams to the government and achieve a successful resolution for our whistleblower clients. If you would like more information or to speak to an attorney at Whistleblower Partners, please contact us for a confidential consultation.