President Trump Calls on UN to Protect Whistleblowers

Mary Jane Wilmoth

Published On: September 20th, 2017

Meanwhile, IRS Whistleblower Program at risk due to Trump Administration’s position in Tax Court case.

President Donald Trump, during his first official remarks before the United Nations (UN), urged that body to protect whistleblowers. “We seek a United Nations that regains the trust of the people around the world. In order to achieve this, the United Nations must hold every level of management accountable, protect whistleblowers and focus on results rather than on process,” President Trump said during a meeting on reforms at the UN.

The corporate world also needs to be held accountable at every level of management. Programs such as the IRS Whistleblower Office help uncover tax-evasion schemes, return tax-payer money back to the U.S. and promote corporate accountability. However, a current the Trump Administration position in a Tax Court case threatens the entire IRS whistleblower program.

On April 24, the Trump Administration filed an appeal in Whistleblower 21276-13W which centers on defining the term “collected proceeds” in I.R.C. section 7623(b). This case has critical policy ramifications for IRS whistleblower program. The government argues that two whistleblowers, who exposed criminal fraud committed by a major company, should not be rewarded for proceeds collected under the criminal tax laws. The U.S. Tax Court has previously rejected this reasoning and properly held that whistleblowers are encouraged by law to turn in criminal tax cheats and big banks that violate criminal law.

If the Administration prevails in its appeal, whistleblowers who disclose credible information that results in the criminal prosecution of large tax cheats will be blocked from obtaining rewards. This will result in fewer whistleblower tips on criminal tax cheats given to the IRS.

At the time of the appeal, Stephen M. Kohn, of Kohn, Kohn and Colapinto and co-counsel for the case stated, “The White House was given on a silver platter the chance to do the right thing, to help whistleblowers and go after big time tax crooks. The new administration instead decided to make life easier for the wealthy with Swiss bank accounts and corporations engaged in tax shelters.”

Kohn issued a statement after hearing President Trumps call to protect whistleblowers at the UN stating, “the administration should withdraw its appeal in Whistleblower 21276-13W. What’s good for UN accountability, is also good for tax accountability. By urging the U.S. Court of Appeals to strip coverage for whistleblowers who expose criminal tax fraud, the Trump administration is sending a green light to the super-rich who rob from the taxpayers by engaging in complex, offshore tax evasion schemes.”

Important Links: