On February 27, TaxFraudBlawg — a new companion law blog to FraudBlawg — launched devoted solely to giving up-to-the-minute news and commentary regarding tax fraud and the recently-amended IRS Whistleblower Program. In less than a year, more than 8,500 readers have turned to FraudBlawg to receive the latest news and commentary regarding whistleblower fraud under the federal False Claims Act and related state statutes. The law firm of Frohsin & Barger, publisher of FraudBlawg, has been a leader in False Claims Act whistleblower recoveries and qui tam litigation, recovering the country’s largest Medicare Hospice Fraud settlement and the largest qui tam settlement in the State of Alabama. Likewise over the past year, the IRS Whistleblower Program — which heretofore had been used sparingly — has become the forerunner in detecting tax fraud due primarily to amendments to the law that went into effect at the end of 2006. As is usually the case, it takes a few years for enforcement efforts to catch up with new laws, but in early 2009 the IRS saw its first major collection effort under the amended IRS Whistleblower Program: the record $780 million UBS settlement. Since then, the settlement has received much attention and demonstrates that whistleblower cooperation will play a large role in the future of IRS enforcement efforts.
Frohsin & Barger’s Tax Fraud Group, led by former IRS Special Agent and federal prosecutor, Ron Brunson, is among the few law firms in the country highly-focused upon assisting whistleblowers in participating in the IRS Whistleblower Program. The IRS tends to be inherently suspicious of whistleblowers, but if you bring forward credible information and are represented by lawyers who understand the IRS mindset and procedures and who have credibility with the agency, then you stand a good chance of receiving a substantial reward.