CPA Sting Operation Nets IRS Fraud

Dear Senator Cruz:

 

Long before the American public became aware of the current IRS scandal, I witnessed firsthand the corruption taking place each and every day between the walls of the Whistleblower Office under the direction of Stephen Whitlock. 

 

Last November I demanded his resignation on behalf of all honest American taxpayers.  Subsequently I have accumulated evidence that I’ve turned over to the Department of Justice that shows Director Whitlock willfully violated federal laws that warrant his removal from office.

 

Honest Services Fraud 

Internal Revenue Service violated Federal law by failing to provide the public they serve with the intangible right of honest service. The law makes it a crime for government officials to deny the public of honest service.  Violating the HSF statute is a federal felony punishable by five years in prison and a $250,000 fine.

 

IRS Violated RRA Section 1203

IRS Director Whitlock violated section 1203 of the Internal Revenue Service Restructuring and Reform Act (RRA) when he failed to respond to Senator Jon Kyl’s Congressional Inquiry. In addition he willfully misused section 6103 in response to the CI made by Congressman Schweikert. Director Whitlock failed to answer the following question: “Did ABC Tax Co engage in tax fraud?” Instead of answering the question Director Whitlock said “disclosure laws that protect the tax information of all taxpayers prevent us from providing information to a third party on the outcome”.  This is a false statement.  Former Acting Commissioner Steven T. Miller issued a memo on June 20th, 2012, that stated “with appropriate controls, interaction with a whistleblower during an examination can assist in timely and correct resolution of issues”.  Director Whitlock provided false information to Congressman Schweikert. 

 

IRS Hid Behind Abused Power

I contacted the IRS on August 17th, 2012, to obtain a debriefing as promised by dismissed Acting Director Stephen T. Miller.  To-date I had blown the whistle on $934 million in earned income credit fraud committed by ABC Tax Co clients.   Listed below are questions I asked IRS employee Dale Cundiff before he hung up the phone on me.

Sorensen: “I submitted Part I of my claim against ABC Tax Co for $5,323,100 on February 6th 2012.  According to Deputy Commissioner Miller the initial evaluation of my case would have been completed approximately May 6th, 2012.  The Commissioner indicated that I would receive a debriefing and may be asked to provide my expertise as an informant.  Could you brief me on the results of the Whistleblower initial evaluation?”

 

IRS: Your claim is still open and I cannot comment on its status. That’s all that I’m legally required to say.

 

Sorensen: “The Whistleblower Office has a fiduciary duty to provide Randall Sorensen with the intangible right of honest service. Would you agree with that statement?”

IRS: I don’t understand

 

Sorensen: “I submitted Part II of my claim against ABC Tax Co for $12,015,000 on Feb 6th 2012.  Could you brief me on the results of the initial evaluation/”

 

IRS: No sir

 

Sorensen: “I submitted Part III of my claim against ABC Tax Co for $74,400,000 on Mar 6th 2012.  According to Deputy Commissioner Steven T. Miller the initial evaluation of my case would have been completed approximately June 6th 2012. Commissioner Miller indicated that I would be receiving a debriefing.  Could you brief me on the results of the initial evaluation?’

 

IRS: No sir claim is still open

 

Sorensen: “Deputy Commissioner Steven T. Miller stated in a July 25th, 2012 letter to Senator Grassley “collection function also has steps to obtain information from informants to assist in the collection efforts. On February 6th, 2012, I offered to test 5.4 million ABC Tax Co earned income tax filers for tax year 2011 in 5 minutes.  Can you tell me why the Whistleblower Office didn’t ask me for my assistance?”

 

IRS: Ahh   Ahh. I’m not sure of that one, it’s one or the other.

 

Based on the dysfunction I witnessed in the Whistleblower Office from February, 2012 through August, 2012, I knew the Whistleblower Office lacked the necessary competency and work ethic to conduct a billion dollar investigation. Therefore, I set up a sting operation. Below is a timeline of the trap I set to catch corrupt IRS officials:  

 

Sting Operation Timeline

 08/17/12 Sorensen called IRS to receive a debriefing on $1 billion claim

08/17/12 IRS Refused to provide answers after being on file 180 days

09/06/12 Sorensen filed client’s amended tax returns to obtain 2010 refund of $1,550 and 2011 refund of $6,788. The ex-husband was guilty of tax fraud for falsely filing head-of-household and daughter as a dependent

09/13/13 Sorensen submitted form 211 to WO to claim reward on ex-husband tax fraud of $6,515

11/22/12 IRS agreed and issued ex-wife 2010 refund of $1,550

11/07/12 Whistleblower Office set up claim #2012-001101 and sent letter stating it could take several years to resolve tax matters as well as several years to collect

11/19/12 IRS agreed and issued ex-wife 2011 refund of $6,778

11/21/12 IRS Friday before Christmas WO closed claim #2012-001101 one month after informing Sorensen it would be years and years

01/08/13 IRS prepared letter to Sorensen stating that information provided “did not result in any proceed”

04/02/13 Sorensen obtained transcript showing IRS never attempted to collect taxes from husband

04/02/13 Confirms IRS committed honest services fraud when they lied about phantom investigation and lied about phantom results

04/02/13 IRS embezzled funds from US taxpayers by cashing paychecks for work never performed

 

IRS Defrauded Sorensen $2,000

The Whistleblower Office sent a letter dated November 7th, 2012 indicating that it could take several years until final resolution of all tax matters.  In addition, the WO said that before we can pay a reward we must collect any taxes, penalties or fines and this could also take several years.  The Whistleblower Office prepared me to wait as long as six years or 2,000 days.  Instead the WO miraculously wrapped up its investigation in 44 days.  According to IRS employee S. Newton, badge number 100091224, my claim was closed December 21st, 2012 which was the Friday before Christmas.  If the IRS was willing to defraud Randall Sorensen of $2,000 then one could surmise that the IRS would NEVER consider a whistleblower claim against ABC Tax Co for $300,000,000. 

 

Internal Revenue Service employee Director Whitlock committed a federal felony. His office took credit for conducting phantom investigations, issuing false results of investigations that never took place and for denying Randall Sorensen with the government mandated right of honest service. Further, the IRS defrauded every American by failing to investigate blatant earned income credit tax fraud totaling $1 billion dollars.  I’m requesting that Congress hire a Big Four accounting firm to perform an independent investigation regarding malfeasance, misconduct and honest services fraud committed by the Internal Revenue Service.  Thank you for your anticipated cooperation and I will look forward to hearing from you.

           

Randall Sorensen CPA CFF

 

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Comments

  • Any and all investigations of that organization could never be a waste of time.  The horrendous bonuses the double pay the outright illegal actions when dealing with the people on taxes and tax exemption is all being opened up to us all. I say close down the department, prosecute them all and give us a head tax that makes sense.

  • Is anyone really surprised by this???? After all we are dealing with the BEAST!

  • The DOJ sent me a letter saying that they're not responsible for investigating violations of federal tax laws.  They also said the DOJ lacks jurisdiction to investigate misconduct by IRS employee.

    The DOJ deferred me back to the IRS.  Stated another way, the fox is in charge of telling the farmer why chickens are missing from the hen house.   

    If the IRS is going to put people in prison for breaking federal laws then Congress has a duty to put IRS employees in prison who violate federal laws while on the job.

    At a minimum the IRS is guilty of cashing REAL paychecks for work NEVER performed.  That's fraud.

    I pulled back the green curtain and exposed fraud that neither the DOJ or IRS will acknowledge.  Let's see if Congressman Issa and Senator Cruz can get to the bottom of fraud that permeates throughout the IRS.

  • PUT the bums in prison!! UGGGG

  • Shutter the IRS and institute a "FLAT RATE TAX"

  • You filed a complaint with the Justice Department? I wish you well...

  • Damn,Sounds real good to me !!!
  • AND, was any other result expected???

  • Know what ...

    Absolutely nothing will happen.

  • Darrell Olson.   Maybe some honest accountability.

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