Tuesday, July 8, 2008

Former IRS informant now subject of complaint by another tax informant

A Miami-based newsletter is reporting that the Internal Revenue Service has opened up a new investigation into a former Cayman Islands-based banker-turned-informant after a one-time partner filed a claim under the IRS's informant reward program alleging tax fraud.

"Offshore Alert" says that the former partner also is suing the banker, John Mathewson, over a business disagreement.

A government case against Mathewson in 1999 resulted in the banker providing the IRS with extensive information about off-shore tax havens in the Caribbean. A federal prosecutor at the time called him "the most singularly important government co-operator in tax haven prosecutions in the history of the Internal Revenue Service.”