SEC, CFTC Whistleblowers Dodge A Devastating Tax Bullet
By Gary AguirreFebruary 12, 2018, 12:03 PM EST
Law360 (February 12, 2018, 12:03 PM EST) -- Whistleblowers destined to receive bounties from the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission under the Dodd-Frank Act just dodged a deadly tax bullet. This drama within a drama played out last week when the U.S. government shut down for a few hours on Friday morning.
Before the government shutdown at midnight on Thursday, whistleblowers who received a bounty from the SEC and the CFTC faced devastating tax liability on any future award. The increased tax liability would have diluted the monetary incentives...