Law Firms Announce $20 Million Tax Whistleblower Award

The law firm of Kohn, Kohn & Colapinto and the law firm of Zerbe, Miller, Fingeret, Frank & Jadav – working together at the Tax Whistleblower Attorney Group (TWAG) – announced a major new tax whistleblower award today that the Internal Revenue Service (IRS) paid out to their clients. The award is for over $20 million dollars and reflects over $88 million dollars in taxes returned to the Treasury in connection with the whistleblower’s disclosure

“Today is good news for all honest taxpayers,” says Stephen M. Kohn, founding partner of Kohn, Kohn & Colapinto. “Thanks to our client, a courageous whistleblower, the IRS collected over $88 million in taxes from eighty millionaires seeking to evade taxes. As important as the direct result of the whistleblower’s actions resulting in $88 million in taxes being collected, equally important is the deterrent impact on those thinking about cheating on their taxes. A strong tax whistleblower award program brings dollars in directly but as much, if not, more dollars indirectly through improved compliance by taxpayers. I join Dean in congratulating our client who came forward with the critical information to assist the IRS in its important work.”

“The award of $20 million dollars is well-deserved for this whistleblower – whose efforts have benefitted all Americans,” states Dean Zerbe of Zerbe, Miller, Fingeret, Frank & Jadav. “I am especially appreciative of the leadership of the new Director of the IRS Whistleblower Office (WBO), Mr. Erick Martinez and his capable team at the WBO in making this award happen. Thanks also to IRS Commissioner Billy Long for his support of the IRS whistleblower award program as well as the Trump administration for its vocal support for awards to whistleblowers, including tax whistleblowers. Particular thanks to the IRS examiners and investigators who saw the value of the whistleblowers’ information and pulled oars to help ensure that these millionaires pay their taxes.” 

“Today’s award reinforces how vital it is that the Congress take action on the bipartisan IRS Whistleblower Program Improvement Act,” Kohn adds. “While the IRS Whistleblower Program is seeing good success, the possibilities are for even greater success in addressing tax evasion. The commonsense reforms in the IRS Whistleblower Program Improvement Act – including de novo tax court review and ending sequestration of awards — will encourage more informed and knowledgeable whistleblowers to come forward. I commend Senators Grassley (R-IA) and Wyden (D-OR) as well as Chairman Crapo (R-ID) for their leadership on this legislation and encourage that the reforms be passed this Congress.

“The IRS whistleblower program is a proven way for the IRS to make efficient use of limited audit and examination resources,” Zerbe further states. “ The IRS whistleblower program not only benefits honest taxpayers by bringing revenues into the Treasury from those seeking to evade tax, as important, the IRS whistleblower program helps target IRS examination and investigators on known tax cheats. This better targeting of IRS exam resources, thanks to the IRS whistleblower program, means that the vast majority of honest taxpayers are not bothered by unnecessary calls and letters from the IRS. As the new leadership at Treasury and the IRS looks for efficiencies and improvements at the IRS – the tax whistleblower program is a key to that success.”

Kohn and Zerbe have jointly represented several tax whistleblowers – including Brad Birkenfeld, the UBS whistleblower who received an award of $104 million from the IRS in 2012. In addition, they successfully represented the whistleblowers in the landmark Tax Court case Whistleblower 21276-13W v. IRS (147 TC 121(2016)) which resulted in a major win for tax whistleblowers by expanding the definition of “collected proceeds” to include criminal fines and civil forfeitures for whistleblower awards. Together, Kohn and Zerbe have realized nearly $500 million dollars in awards to tax whistleblowers. They represent tax whistleblowers through the Tax Whistleblower Attorney Group – TWAG.