IRS whistleblower. If a civil case is settled with the same party to an IRS whistleblower can it quell cooperation with the IRS?

Asked about 1 year ago - Franklin Lakes, NJ

Taken from a different view. A civil suit is filed. An IRS whistleblower is not yet filed. Later it appears IRS violations are found. They are raised to the other side. The other side files a counter suit for defamation. The violations are clear. If at any point the plaintiff says we are now going to the IRS I would assume that is not blackmail. The public good is benefited from the IRS knowing. The plaintiff is not asking for money only placing them on notice.

Attorney answers (3)

  1. Thomas J. Wagner

    Contributor Level 19

    5

    Lawyers agree

    Answered . If the violations are clear and it is worth the time and effort to inform the IRS, probably should avoid the appearance of impropriety by just informing the IRS without letting the other side know ahead of time. Maybe the better option is to wait until the suit is litigated, and then inform the IRS

  2. Robb Adam Longman

    Pro

    Contributor Level 14

    5

    Lawyers agree

    Answered . How the information was obtained would need to be reviewed carefully to see if everything complies with the IRS whistleblower status. Telling the other party could be considered a threat. I would not threaten, but just take the info to the IRS if it is worth it.

    This answer is based on general legal principles only and is not intended to provide specific legal advice. This... more
  3. Bruce Givner

    Contributor Level 19

    4

    Lawyers agree

    Answered . Messrs. Wagner and Longman have given you the right advice.

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