Whistleblower 8391-18W, 161 T. C. 5, filed 10/16/23, claims the Ogden Sunseteers short-changed him on one of his blows. 1-18W got 30% on a couple blows (hi, Judge Holmes), wherein he blew up US institutions for dodging withholding on dividends from onshore corporations to offshore shareholders. But on his latest blow, he only got 22%. He claims these were all the same offense.

The OS say yes, but that’s not enough. The Preliminary Award Recommendation Letter (PARL) didn’t identify why they were cutting 1-18W’s take, but the DARL (Detailed Award Recommendation Letter) Sunset-‘splained.

“The [IRS] field team had already identified REDACTED 2’s withholding tax issues prior to receiving the PSI/whistleblower information for consideration. They had opened the taxpayers 200312-200512 F-1042 withholding tax returns for exam and they had identified the TRS-dividend withholding issue prior to receiving the information. However, the PSI/whistleblower information did assist the field team in developing the withholding tax issues. The information helped the team identify connections between the lending and swap transactions which enabled them to better understand the withholding tax implications. The field team used thePSI/whistleblower information to request information from REDACTED 2 through IDRs. Therefore, the award amount is increased to 22%.” 161 T. C. 5, at p. 10.

That’s enough for Judge Nega. After plowing through (and plowing under) Reg. Section 301.7623-4 and its plethora of factors positive and negative (nonexclusive, none weightier than any other, although one may outweigh all the others, and no mere numerical weigh-up), he finds the Ogden Sunseteers did not abuse their discretion. In this case, IRS was already looking at this stuff.

Taishoff asks if they were already looking because 1-18W had told them years before what kind of game these dudes were playing, and the US Senate Permanent Subcommittee on Investigations had been nosing around this dodge based on what 1-18W had told them. Nudge nudge, wink wink, say no more.

Likewise, IRS doesn’t have to pay up until either the blower has accepted the offer and waived all appeals rights, or final order disposing of any appeals is entered. Here, 1-18W petitioned, so 1-18W can wait.

1-18W objects to the sequester take-out, but that was a lost cause long ago.

Finally, 1-18W gets no interest on his/her award, and neither will anyone else. Sovereign immunity bars interest on awards and judgments, unless specifically waived by statute, and here Section 7623 is silent.

If you want to know why whistleblower awards take so long, read this opinion.

Edited to add, 11/19/25 Looks like DC Circuit asked the same questions Taishoff did.