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Perspective

Apr. 27, 2011

Whistle-blower Program: Justice for Taxpayers or Reward for Rats?

The Internal Revenue Service's new whistle-blower program creates controversy with its cash reward incentive. By Matthew Zandi of Steel Zandi.


An in-house certified public account who complained about a tax lapse that his company ignored, tipped off the Internal Revenue Service and has received the first IRS whistle-blower award of $4.5 million. This tip netted the IRS $20 million in taxes and interest from the delinquent company. The award represents a 22 percent cut of the taxes recovered. This first award comes four years, three months, and 18 days after Congress created the first meaningful rewards to tax whi...

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