Do I Need a Tax Whistleblower Attorney?
International Tax Whistleblower Representation
Can I file my tax reward claim by myself, and if so, why do I need an attorney?
Yes, a whistleblower can proceed without representation. However, there are a number of important considerations when deciding whether to obtain representation. The Whistleblower Office receives thousands of claims annually and most are not acted upon. The first service counsel can provide is to ensure that the claim is submitted in the most compelling and persuasive format, including an analysis of all appropriate documentary support of the claim as part of the submission.
Counsel should also evaluate any potential civil or criminal tax liability that could apply to the whistleblower as well any potential civil liability that could arise as a result of the whistleblower improperly obtaining documents or potentially breaching any fiduciary duties to the clients. In performing such an analysis, counsel should be aware of the laws governing fiduciary duties, attorney-client privilege, accountant-client privilege, and the law governing theft of company materials. These are all issues that can arise during the course of an investigation.
The IRS also does not want to have attorney-client or accountant-client materials presented to them in support of a whistleblower claim because it can potentially taint their investigation. Counsel should analyze all documentary evidence and testimony presented to ensure that it is not breaching the rules established regarding privileged information.
Once the claim is submitted, experienced counsel and experienced tax accountants can increase the likelihood of success of the claim and help maximize your tax reward by ongoing cooperation with the investigation. Kenney & McCafferty's forensic accountant is an experienced former Revenue Agent who is familiar with all elements of an audit plan, and in some cases the IRS has accepted proposed subpoenas to assist their investigation.
Once the case is complete, your counsel should make a presentation to the Whistleblower Office setting forth the reasons the reward should be maximized. It is important that a record of all contributions to the case be maintained over the course of the investigation so that it can be referenced at the conclusion of the case. Once the award is made, counsel can review the Whistleblower Office's rationale for the reward and if it is necessary, appeal the Whistleblower Office's determination to the United States Tax Court. Counsel should be admitted to the U.S. Tax Court and be prepared to pursue an appeal if necessary.
Do attorneys and accountants need a tax whistleblower attorney?
Yes. Attorneys and accountants acting as whistleblowers face special hurdles in the Tax Whistleblower Program. Before a claim is submitted to a field auditor, the IRS assigns a taint team, consisting of an auditor and an attorney from the General Counsel's Office, to review the information provided for potential breaches of attorney client privilege, accountant client privilege, and any other potential issues related to proprietary information or client confidentiality. The taint review is a critical part of the process because the IRS may reject the information on which the claim is based because of concerns over the potential breach of such privileges. During the taint review, counsel must be prepared to articulate for the IRS the legal argument as to why the documents and testimony presented do not violate any privilege that could taint the IRS case.
What if Kenney & McCafferty doesn't know a lot about the specific tax violation I'm reporting?
Most likely, Kenney & McCafferty does have experience with the tax violation, but if not, we can draw on accounting experts outside the firm to ensure that we have a thorough understanding of the tax fraud in question. Our role is to protect the whistleblower and get the best fiscal result possible. Our legal protection extends well beyond the particular tax violation involved in your claim.
I filed my own claim a few years ago, and the IRS won’t give me any information. Can you help?
We may be able to help. Before the law changed in late 2006, the IRS did not process claims well, and several were lost. Last year, the Treasury wrote a report identifying several problems with the whistleblower claims process and made recommendations. The IRS has improved in the last two years, but claims still need to be tracked carefully. We prefer to file the claim for you from the beginning so that we can make sure it moves through the system properly.
Will Kenney & McCafferty provide weekly updates on my claim?
Weekly updates may sometimes be appropriate if a claim is in its early stages, but as the claim moves to the audit team or the criminal investigator, weekly updates will not be productive because we will not have much new information to provide. We monitor cases quarterly at this point in the claim, and we ensure that your claim is still open. We respond quickly when we learn that action is needed.
Please contact our tax whistleblower attorneys today if you have knowledge of tax underpayment or fraud totaling at least $2 million. Kenney & McCafferty will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.
