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IRS denies reward claim by whistleblower banker

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By Reuters
Thursday, April 18, 2013, 7:24 p.m.

WASHINGTON — The Internal Revenue Service has rejected a reward claim made by a whistleblower, former banker Joseph Insinga, who had sued the agency in a closely watched case.

In a letter dated April 15, the IRS told Insinga that he was not entitled to a reward. A copy of the letter was provided by his attorney, Andrew Carr.

The information Insinga gave to the IRS in May 2007 about several companies, which he alleged dodged taxes, did not result in collection of any additional taxes, the IRS said.

Insinga will appeal the rejection, Carr said by email.

Insinga sued the IRS last year, trying to force it to announce a determination on his claims after years of being kept in the dark about the status of his case.

Other whistleblowers and lawyers had hoped the Insinga case would bring more clarity to how the IRS handles whistleblower claims, said Bryan Skarlatos, a tax lawyer at the firm of Kostelanetz & Fink who represents taxpayers and whistleblowers.

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