There is no honor among thieves

From The Washington Post:

Whistleblower Joseph Insinga suing IRS for not being paid a reward

By ,

Joseph A. Insinga was the ultimate whistleblower. The former executive with a Dutch bank says he divulged to the Internal Revenue Service details about how for years his employer helped U.S. companies dodge taxes.

Now Insinga is taking tax authorities to court for failing to give him a reward that he says he is owed by the federal government.

“I gave substantial documents to the IRS,” said Insinga, 61, who is retired and lives in Florham Park, N.J. “It was only a matter of time before some of the companies had to pay money they owed. We thought [IRS officials] were going to process an award.”

Insinga filed a whistleblower claim with the IRS in 2007, a year after Congress passed a law to help the government uncover tax cheats by encouraging informants to come forward. Those with inside information could receive up to 15 to 30 percent of any taxes, fines, penalties and interest the IRS collected from a taxpayer who was illegally sheltering taxes, usually a corporation.

Insinga says he is entitled to a portion of the money the IRS collected from the taxpayers he exposed. He’s confident that at least one company, and maybe more, was forced to pay taxes based on his information. He had alleged that Rabobank Group, where he worked as an executive for more than a decade, helped seven companies avoid hundreds of millions of dollars in taxes through offshore partnerships and other corporate schemes. But he says that he has heard nothing from the IRS.

Insinga’s lawyers filed a lawsuit Feb. 21 in U.S. Tax Court in Washington, claiming that the IRS owes their client a share of the proceeds it collected. The IRS declined to comment on the case.

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