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Saturday, August 28, 2004

IRS Whistleblower Remy Welling Responds

Saturday, August 28, 2004

Welling PhotoA follow up on the post two weeks ago about IRS whistleblower Remy Welling. The New York Times and Tax Notes carried her story as a 22-year IRS veteran who risked her job, as well as a jail sentence, in disclosing a closing agreement between the IRS and Micrel Inc. of San Jose, California. Ms Remy wrote to the Roth & Company web site, explaining her side. Among her provocative comments:

This particular case was not an isolated incident either. But I was not going to "break ranks" as they say. But when I was handed so much evidence, what was I to do? It was hard to say or do nothing. It was a dilemma for me. And believe me, I struggled with it for some time. And I still am. A lot of what I think is wrong in the IRS began with the Restructuring Act of 1998 and Sec 1203(b). The Ten Deadly Sins and the pressure it has put on the agents and the managers of the Internal Revenue Service.

http://taxprof.typepad.com/taxprof_blog/2004/08/irs_whistleblow.html

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Comments

I refused to authorize the Form 906 Closing Agreement, as requested, because I felt it would have created another Enron-type situation. The public company had not disclosed their unusual Stock Option Plan to the SEC. It was a similar situation to Holtsville, New York's Symbol Technology, Inc. Thirty Day Stock Option Look Back Plan, where the executives were indicted for embezzlement and criminal fraud by the SEC and the Criminal Investigation Division of the IRS.

Posted by: Remy Welling | Sep 9, 2004 10:02:25 PM

Well, as you know the IRS summarily locked me out with a Thirty Day Termination Letter and an order to take LWOP (leave without pay).

PriceWaterhouseCoopers is the accounting firm for the company in the NY Times article.

Tom Wilson, the Industry Director for Communications, Technology and Media issues, was in my direct chain of command.

I was told yesterday by one of our Union Presidents (National Treasury Employees Union), that even though Tom Wilson retired from the IRS in June 2004, he was recently employed by PriceWaterhouseCoopers. I have not had the opportunity to confirm this independently. IRS employees are required to wait at least a year before working at accounting firms such as PwC.

In October 2003, I spoke with Tom Wilson directly, in hopes his Office would investigate the situation. Unfortunately, his Office was of no assistance.

Posted by: Remy Welling | Sep 11, 2004 12:06:23 PM

Well, as you know the IRS summarily locked me out with a Thirty Day Termination Letter and an order to take LWOP (leave without pay).

PriceWaterhouseCoopers is the accounting firm for the company in the NY Times article.

Tom Wilson, the Industry Director for Communications, Technology and Media issues, was in my direct chain of command.

I was told yesterday by one of our Union Presidents (National Treasury Employees Union), that even though Tom Wilson retired from the IRS in June 2004, he was recently employed by PriceWaterhouseCoopers. I have not had the opportunity to confirm this independently. IRS employees are required to wait at least a year before working at accounting firms such as PwC.

In October 2003, I spoke with Tom Wilson directly, in hopes his Office would investigate the situation. Unfortunately, his Office was of no assistance.

Posted by: Remy Welling | Sep 11, 2004 12:07:04 PM

Here is the cite for the article by Warren Rojas, an Investigative Reporter for Tax Analysts, a widely read and respected Professional Accounting Journal:

http://services.taxanalysts.com/taxbase/info.nsf/Image/whistleblower/$file/Whistle-Blower.pdf

Posted by: Remy Welling | Sep 25, 2004 12:39:53 PM

The same principles apply to Symbol Technology, Inc.'s 30 DAY LOOK BACK PLAN, where their executives were indicted for embezzlement and criminal fraud for an investigation initiated by the Securities and Exchange Commission (and the SEC brought in the Criminal Investigation Division of the Internal Revenue Service) to examine the 1996 through the 2001 years. This was reported in the June 4, 2004 edition of the NY Times in an article by Floyd Norris.

If I recall correctly, Symbol Technology, Inc. owns Palm, Inc. which manufactures the Palm Pilot.

Our NTEU (National Treasury Employee's Union) Contract says we are not required to perform activities against the law.

I never unlawfully disclosed information. Even information released in the NY Times on August 10, 2004 was already obtained through a Freedom of Information Act that was sent back to me unredacted by the Treasury Inspector General for Tax Administration.

I attended the University of Texas at Austin for my Masters of Professional Accounting, after receiving my Bachelor of Arts in Biology at the State University of New York in Buffalo.

Thank-you for your patience.

Posted by: Remy Welling | Sep 25, 2004 1:09:37 PM

If you need to contact Remy Welling, e-mail address is [email protected]

Posted by: Anonymous | Nov 20, 2004 10:31:59 AM