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Nov 08

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Is IRS Whistleblower the New Caped Crusader?

He strikes again.

The IRS whistleblower known only as “Mr. ABC” has claimed his third payout for assistance in bringing down tax cheats.  Mr. ABC has been critical of the government’s ability to identify and investigate sophisticated tax shelters.  Whether motivated by a sense of justice or the pursuit of yet another seven figure reward, the Wall Street insider is demonstrating the incredible return on investment available to the IRS under the program.  His first payout in 2004 was $1.24 million, in 2011 he was paid another $1.1 million, and his recent payout was $2 million.  But the IRS recoveries will dwarf those payments.  The most recent  award relates to information that Mr. ABC provided regarding Illinois Tool Works, who had allegedly submitted fake deductions of hundreds of million of dollars in its tax returns.

Mr. ABC’s awards came under a prior whistleblower reward program whereby compensation was generally limited to $2 million.  Whistleblowers who assist the IRS with tax recoveries exceeding $2 million can currently get up to 30% of the sum recovered.

About the author

Renee Howdeshell

Renee Howdeshell is a founding member of Fulcrum Inquiry, an accounting, finance and economic consulting firm that performs damage analyses for commercial litigation, forensic accountings, royalty & distribution audits, financial investigations, and business valuations. Ms. Howdeshell holds a degree in Finance and Marketing from the University of Virginia's McIntire School of Commerce and is a Certified Public Accountant (CPA) and a Certified Fraud Examiner (CFE). She has testified as an expert witness in federal court, CA state court and arbitration regarding the results of her work. She can be reached at (213) 787-4112 and her resume is available at www.fulcrum.com.

Permanent link to this article: http://betweenthenumbers.net/2012/11/is-irs-whistleblower-the-new-caped-crusader/

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