Attorneys Experienced in Obtaining IRS Tax Fraud Whistleblower Rewards
Kohn, Kohn & Colapinto’s partners have been in the forefront of seeking to enhance legal protections and rewards for tax fraud whistleblowers
Whistleblowers that provide information about tax fraud or tax underpayments to the IRS can receive rewards. The whistleblower must provide information that is specific and credible. If the IRS uses information provided by a whistleblower, it can award that person up to 30 percent of the tax, penalties and interest it collects.
Federal law provides for two types of awards. Internal Revenue Code (IRC) Section 7623(b) provides for awards of 15 to 30 percent of the amount collected if the taxes, penalties, interest and other amounts in dispute exceed $2 million, and if the case deals with an individual, his or her annual gross income must be more than $200,000. IRC Section 7623(a) provides for a maximum award of 15% for those cases that do not meet the dollar thresholds of $2 million in dispute or cases involving individual taxpayers with gross income of less than $200,000.
Kohn, Kohn & Colapinto represented the world’s largest Internal Revenue Service (IRS) Tax Fraud Whistleblower, Bradley Birkenfeld. Mr. Birkenfeld disclosed illegal offshore Swiss banking that resulted in over $5 billion recovered for U.S. taxpayers. His information forced Switzerland to change its international treaty with the United States and Switzerland’s largest bank was forced to turn over the names of over 4,900 U.S. citizens who held illegal offshore accounts. Mr. Birkenfeld received a $104 million IRS Whistleblower reward – the largest ever received by an individual whistleblower.
As the Fox News special program “Tracking Your Taxes” reports, the IRS has launched a major offensive against tax evaders. There has been extensive media coverage of whistleblowers fighting tax fraud, including the CNBC story “Bounty Hunters” and a 60 Minutes special report.
On August 3, 2016, tax whistleblowers won a landmark ruling from the U.S. Tax Court. The Court held that the whistleblowers were entitled to a reward based on monies collected in criminal fines and penalties. This historic decision reversed the position of the Treasury Department which narrowly limited the “collected proceeds” upon which a whistleblower reward could be based.
The anonymous whistleblowers, identified only as Whistleblower 21276-13W and Whistleblower 21277-13W, were represented by a team of attorneys including KKC partner Stephen M. Kohn. These tax fraud whistleblowers were entitled to a reward of $17,791,607.00, based in part on $54 million obtained in criminal fines and civil forfeitures for which the IRS had illegally claimed were outside the whistleblower reward program.
Learn more about tax fraud whistleblower protections by visiting the IRS Whistleblower Resources page.
If you have knowledge of Tax Fraud and would like your information reviewed by an experienced whistleblower reward attorney, please contact us.