Whistle-blower Gets $4.5 Million Award From IRS

Whistle-blower Gets $4.5 Million Award From IRS

www.npr.org

The Internal Revenue Service has awarded a Pennsylvania accountant $4.5 million because he blew the whistle on his own employer — an act that "netted the IRS $20 million in taxes and interest," The Associated Press reports.

According to the AP, "the accountant filed a complaint with the IRS in 2007, just as the IRS Whistleblower Office opened, but heard nothing for two years." So he hired a lawyer to help push the case. That lawyer, Eric Young of Blue Bell, Pa., declines to identify his client or the company he worked for.

(visit the link for the full news article)

Not sure what to make of this one, but this guy is a millionaire now.

And he had to pay taxes on the money too, but he still wound up with 3.24 million. I would say this person and his family are set for life. I wonder if this was greed driven or honesty driven?

What do people think about turning the company you work for into the IRS and other people you know that cheat?

www.npr.org

This article doesn't give much information about the the circumstances of the Accountant, but remember that he may have been on the line, too. If the company's wrongdoing were to be found later and it was shown that he knew (does not matter if he was involved) and did not disclose, he could be facing jail time.

Gone are the days when the Accountant could claim he was "just doing what the boss told him" Sarbanes–Oxley and Enron, changed that. These days, the Accountant and the CEO go to jail together (in theory)... So, having said that, were it conscience or to save his own career, or both:
Does it matter why he blew the whistle, or just that he did blow the whistle?

In the crime world, money if Lord.

The only victim are the slaved that keep the arena nice for the games.

Peace

I'm gonna look at this from a different angle: if taxes weren't so severe, maybe people wouldn't have to resort to these kinds of things and "cheat the system." Not all of would stay in line, but a lot more would. Now look at the whistleblower: 4.5 million award taxed to 3.2 million? He lost over 20% of his money just from taxes! That's a million going to pay for the Obamas' new vacation. He might also have been a "smart" person and knew (or at least took the chance) to screw his company knowing he'd get this kind of award, in this case I'd rule the motive as betrayal driven by greed.

If the IRS were going to gift me 4 million yankee monopoly dollars, each and every one of you is going to jail im affraid.

Originally posted by LadySkadi

Gone are the days when the Accountant could claim he was "just doing what the boss told him" Sorbannes-Oaxley and Enron, changed it all. These days, the Accountant and the CEO go to jail together (in theory)... So, having said that, were it conscience or to save his own career, or both:
Does it matter why he blew the whistle, or just that he did blow the whistle?

Just depends, if the accountants were part of the ring, then they will not tell a soul, but if they are in fear of their careers and can get a big payday, I would think we'll see allot more of these cases.

i dont blame the guy for cheating when your paying out over 60% to state and federal in taxes something has to give

the fundamental difference between that guy and the irs is he earned his money the irs didnt.

when over half this country population is paying taxes and the other isnt its a problem.

i dont think that dude deserved the 4 million tho


and let me clarify i dont blame him but i wouldnt cheat the irs no matter what filers think they can get away with most never do

This is good. Whistle-blowers should get rewarded handsomly for their actions. They risk alot when they do it. Companies that cheat and commit crimes are doing so against other companies. Unfair competition. For the markets to work properly all have to abide by the same rules.

Originally posted by Realtruth

What do people think about turning the company you work for into the IRS and other people you know that cheat?

My original major was business, and my core was accounting. I chose that because it is supposedly the concentration that requires the absolute highest level of ethics. When I left business school to finish my degree in Philosophy, it was because the ethics where not high enough for me in accounting at that time. (Just before Enron collapsed) But that is something you need to remember, accountants are supposedly upholding an incredibly high standard of truth, which if you understood the role financials play in stock prices you would see immediately why they HAVE to be completely and unerringly honest. Its a necessity, not an option.

Sooooooooooooooo..........I absolutely think you should turn your employer in if they are cheating on their taxes or breaking ANY law at all. And I would, for free. I would be willing to lose my job if it that were the only way I could remain ethical.

I would not go so far as to rat my neighbor out over his taxes, but I would tell him/her I thought they were a lousy piece of crap for not paying their share.

I think he is somewhat of a traitor to his firm. Its hard to be ethical as an accountant when your own government is not ethical; ie 33% of federal taxes go to pay interest on the debt, 33% to the military and black budget, 33% elsewhere. In effect most of the money is squandered left and right!

And the $4.5 million award seems outlandish for just doing your job.

reply to post by AdamsMurmur


Taxes are severe? Are you serious?

They extended Bush's tax cuts. Taxes have never been as low as they are.

reply to post by EarthCitizen07


If severity of the taxes is the problem then changing them is the solution. Not criminal acts that cause unfair competition.

reply to post by EarthCitizen07


People who ACT like you are recommending, should be jailed. "Just doing your job" is not an excuse. If your employer told you to go jump off a cliff, would you?

You are responsible for your own behavior, at all times. "Just following orders" is no excuse, not even for the military.

And "a traitor to his firm?" Who owns the firm? Who is he supposed to be loyal too? Do you even understand business enough to know that? Or are you just a "business groupie wanna be" who likes the idea of business and a free market and really doesnt understand it at all.

The CEO, CFO, etc., are not the "firm." They are employees of the firm. The "firm" is the stockholders, and if there is cheating and lying on financials, you absolutely should be turning your fellow employee in, even if he is your boss. Especially if you are an accountant. Its your legal duty to do so.

The fact that people failed to do that is how the owners of Enron, (the stockholders) ended up losing everything while the employees, (the CEO CFO etc,) robbed the store.

Originally posted by neo96
i dont blame the guy for cheating when your paying out over 60% to state and federal in taxes something has to give

the fundamental difference between that guy and the irs is he earned his money the irs didnt.

when over half this country population is paying taxes and the other isnt its a problem.

i dont think that dude deserved the 4 million tho


and let me clarify i dont blame him but i wouldnt cheat the irs no matter what filers think they can get away with most never do

Exactly! When the government can prove to me it puts my hard earned money to good use then I will GLADLY contribut my fair share and more perhaps. BUT almost all of it is WASTED especially at the federal level. I don't want to pay a masonic nasa that hides secrets from me, a cia that kills and tortures everyone it does not like, an atf that sells weapons to mexican drug cartels, an fbi that is incapable of attacking organised crime, etc

Until then I will pay the absolute minimum to stay out of jail and hope for a meaningful revolution sometime soon to restore common sense and duty of nation. And I am actually a socialist who believes in big government. Go figure how bad our country is mismanaged!! I am sick and tired of the middle class getting lynched by the government because they can't track offshore profits from the big multi-nationals corporations. Ane why do people with more dependents pay LESS than those with few dependents? How the hell is that going to stop overpopulation?

We have satanic morons at the helm.............

reply to post by EarthCitizen07


It was shady-accounting that brought down WorldCom, Enron, Arthur Anderson and indirectly Lehman Bros (for example) and just look at the impact/repercussions that had, worldwide. It's not a valid argument to say that because you don't like how the Govt. spends the money, or you don't like the tax code, you just won't get involved. Especially as an accountant. He may very well have been on the line, simply for having discovered the questionable methods and warning the firm of the issues that may come. If the IRS could prove he knew and did not disclose, he's liable.

Question: if this case affected the firm's clients (think Madoff) and/or retirees (think Enron) as opposed to the IRS, would you feel different about them re-shuffling and hiding assets?

A lady my mom works with took her taxes to a place to get done.

She didn't get the correct amount and was contacted by the IRS because of her claim. Reason being that someone else had claimed her kids. she thought it was the kids' dad. It wasn't it was the people at the place she took to get her taxes done at.

Apparently they had been claiming their clients kids, as their own.

So maybe this guy seen stuff like that and turned them in. Good for him if he saw some shady business and didnt want to be a part of it.

yes you should do your job, but if something is morally or ethically wrong and you feel like turning someone in is the right thing to do, you should.

reply to post by Illusionsaregrander


You'll probably find most people have pretty well honed survival instincts, and when it comes down to it most people will infact "just follow orders" because, sadly the world being the way that is, often gives them no other choice.

A moral high ground is all very well, but if my life and that off my family depended on it, my moral compass will quickly become clouded in shades of grey.

reply to post by Johnze


Then I am sure when people who also have shady grey morals are endangering your family and survival you wont feel so bad about it. After all, its just the way things are.

Someone has no job and so they burglarize your home? Whatever it takes to pay the rent.

Your wife gets shot in a mugging? Ah well, those guys just needed some cash for groceries.

You know I have no problem with your belief system as long as you arent a hypocrite about it when someone is just doing "whatever it takes" and you are the one being screwed by that logic.

Originally posted by LadySkadi
reply to post by EarthCitizen07

 

Absolutely disagree. It's shady-accounting that brought down WorldCom, Enron, Arthur Anderson and indirectly Lehman Bros (as examples) and just look at the impact/repercussions that had, worldwide.

What repurcussions did it have "worldwide"? The financial crisis happened for other reasons, such as the housing bubble, loose lending habits, banks speculating depositers money into derivatives, etc. The SEC had to have known what was going on......did they act? No!

It's not a valid argument to say that because you don't like how the Govt. spends the money, or you don't like the tax code, you just won't get involved. Especially as an accountant. He may very well have been on the line, simply for having found out and warning the firm. If proven he knew and did not disclose, he's liable.

Well I am not an accountant and I don't know all the details of this particular case but I DO KNOW tax cheats are quite frequent in america. Lots of loopholes that companies take advantage of......

Question: if this case affected the firm's clients (think Madoff) and/or retirees (think Enron) as opposed to the IRS, would you feel different about them re-shuffling and hiding assets?

edit on 9-4-2011 by LadySkadi because: (no reason given)

Your comparing apples to oranges!