You filed a whistleblower complaint with the IRS. The IRS estimates that there is an...
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You filed a whistleblower complaint with the IRS. The IRS estimates that there is an 80% chance that it will be able to recover $3 million from the wrong-doer. The IRS also estimates that it will have to spend $500,000 in out-of-pocket attorney time fighting this wealthy, belligerent wrongdoer in court. In private conversations, the IRS and the taxpayers representative have discussed a settlement of this matter for $1.9 million.
a. Would it be rational for the IRS to agree to this settlement?
b. Is it in yourself-interest for the IRS to enter into this settlement?
c. In performing this analysis, would it be ethical for the IRS to factor in the cost of having to pay you an award? Or, should the IRS make its decision independent of whether or not it will have to share a portion of its recovery with you?
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