The “Whistleblower”, who wishes to remain anonymous (hereinafter referred to as “Mr. Doe”), worked as a CPA in the accounting department of a Fortune 500 financial services firm. While carrying out his basic job responsibilities, Mr. Doe discovered that his employer failed to properly disclose the extent of its tax liability and also claimed tax credits in excess of permissible amounts. Mr. Doe initially reported these accounting errors to company management. However, to his dismay, the Company decided not to correct the accounting errors discovered and, to make matters worse, the company made a conscious decision not to inform the IRS who was in the midst of performing a large case examination. By withholding this information from the IRS, Mr. Doe determined that the Company had committed tax fraud in the form of an underpayment totaling in excess of $20 million.
Mr. Doe originally filed his tax fraud whistleblower case pro se in April 2007, after the newly formed IRS Whistleblower Office opened. After having been contacted and interviewed early on, years went by during which time Mr. Doe received no information of feedback from the IRS. Mr. Doe became concerned that if the IRS conducted an investigation and recovered back taxes as a result, that his claim to a reward under the new whistleblower program may not be assured. It was then that Mr. Doe retained Eric L. Young, Esquire, an Egan Young founding partner, to represent him.
Mr. Young, an experienced whistleblower attorney, assessed the case and determined not only that Mr. Doe’s allegations should be of significant interest to the IRS, but that the case appeared to not have been properly docketed by the IRS Whistleblower Office. Mr. Young proceeded to work with the IRS’ Whistleblower Office by resubmitting Mr. Doe’s claim and assuring that a “Claims Number” was assigned by the Whistleblower Office — something that did not occur before Mr. Young assumed representation in this case.
After securing a Claims Number for Mr. Doe’s claim, Mr. Young proceeded to provide all of the original case documents and information to the IRS Whistleblower Office, further exposing the Company’s substantial fraud. At the same time, Mr. Young determined that an investigation had ensued and over the course of his representation, both he and his associate, Brandon J. Lauria, Esquire, maintained close contact with the IRS Whistleblower Office in order to assure that Mr. Doe’s allegations were investigated and that his right to a reward would be protected in the event of a recovery by the IRS.
Mr. Doe’s decision to retain Mr. Young and his law firm paid off. On April 7th, 2011, Mr. Doe received the first-ever mandatory whistleblower reward (as confirmed by the IRS Whistleblower Office) in the amount of $4.5 Million. Although the IRS code provides that rewards may range from 15 to 30 percent of the IRS recovery, Mr. Young’s representation and the Whistleblower’s cooperation directly led to an enhanced reward of 22 percent!