Tax Whistleblower Blog

Grassley v. Reid

          Recently Senator Charles Grassley (R-IA) speaking of the Tax Whistleblower Reward Program praised whistleblowers for their courage and patriotism.  Grassley, perhaps understanding economics, finances, Congress and the American people better than Reid, stated that “whistleblowers often risk their careers to expose fraud, waste, and abuse in an effort to protect not only the health and safety of the American people, but the federal treasury and taxpayer dollars.”  Grassley, in making that statement was speaking of all federal whistleblowers in a speech he gave during National Whistleblower Week.  But he also must have been thinking of the bill that he sponsored resulting in the IRS Whistleblowing Office and the enhanced Tax Whistleblower Reward Program.

However, ten years ago, Senator Harry Reid (D-NV) told Congress that the Internal Revenue Service was paying “snitches to act against associates, employers, relatives and others-whether motivated by greed or revenge-in order to collect taxes.”   Reid discussed the tax informant program “as unseemly, distasteful, and just wrong,” as well as “a powerful incentive to anyone interested in becoming rich at the expense of a neighbor, former business associate, former wife, former husband.”  Ten years ago, Reid was for abolishing the program.

            How could two brilliant men be so different?  Could it be simply a change in the times in the 10 year span since each made their statements, or is it simply the difference between what is right and what is wrong? 

Despite what Senator Reid stated, I have had many clients with tax whistleblowing cases tell me that they were not interested in the reward, but that they “wanted to do the right thing,” that “everyone should have to follow the law,” or “that we each have a responsibility to make the world a better place.”   Yes, both Senators make have points to be made.  In the end, we must each ask ourselves, are we a Reid, or are we a Grassley?