Historic $79 Million IRS Whistleblower Award Demonstrates Renewed Focus on Whistleblower Program

The IRS awarded three whistleblowers the maximum possible under its whistleblower program for information that helped recover $263.7 million

The IRS whistleblower program has awarded three whistleblowers the maximum 30% reward in the amount of $79 million for helping shut down a longstanding tax scheme. It is one of the largest awards in program history. Because of the whistleblowers’ assistance, the government recovered $263.7 million in unpaid taxes, penalties, and interest.

Whistleblower Partners LLP, a law firm that exclusively represents whistleblowers, represented one of the three whistleblowers in this case. Attorneys Mike Ronickher, Chris McLamb, and Eric Havian represented this client along with paralegal Karen Yang.

This historic award reflects the IRS’s increasing focus on its whistleblower program. The $79 million awarded is more than all awards paid to IRS whistleblowers in fiscal years 2021 and 2022 combined and rivals the $88.8 million in awards paid to 121 whistleblowers in 2023. Likewise, the government’s $263.7 million recovery exceeds all amounts collected based on whistleblower information in 2021 or 2022.

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

The award comes at a turning point for the IRS whistleblower program. Since John Hinman took over as the Director of the IRS Whistleblower Office in 2022, the IRS has seen a steady rise in 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. 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.

“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.”

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

All three whistleblowers have chosen to remain anonymous. Getnick Law LLP represented one of the other whistleblowers and worked skillfully and collaboratively alongside Whistleblower Partners to achieve this important outcome for the whistleblowers and the program.

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Whistleblower Partners has deep experience shutting down tax frauds. Our team includes a former DOJ tax attorney, a former member of the IRS whistleblower office, and a law professor specializing in tax shelters. We have dozens of claims pending under the IRS whistleblower program, covering a variety of individual and corporate tax schemes. Our attorneys have also written about the program in The Washington Post, Fortune, and other major publications. We have the skill and experience to explain complex tax scams to the government and obtain awards for our clients. If you would like to speak to an attorney, contact us for a confidential consultation.

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