IRS claims tax whistleblower not entitled to reward

04/18/2013 // West Palm Beach , Florida, US // JusticeNewsFlash // Justice News Flash // (press release)

US – A whistleblower reward claim for a former banker who provided information to the Internal Revenue Service about purported tax indiscretions of several companies was rejected by the agency. As reported by Reuters, Joseph Insinga filed a lawsuit against the IRS and is planning to appeal its decision, which was outlined in a letter dated April 15.

Informants now have the right to appeal rejections in this type of matter to the Tax Court following an overhaul of the IRS whistleblower program in 2006. Many have criticized the IRS’ speed of acting on elements of the whistleblower program.

Dean Zerbe, a whistleblower attorney, is quoted in the report as stating of the potential impact Insinga’s case may have on others, “The court showed that they are not going to take the IRS’s word as gospel.”

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