Whistleblower’s tax woes

It wasn’t a particularly happy Thanksgiving this year for Austin-area resident George Green.

Twelve years ago, the former Texas Department of Human Services architect raised questions about construction quality, or rather the lack of it, and claimed contractors were offering kickbacks.

Green subsequently was fired, sued under the whistleblower law and won a $13.6 million judgment against the state.

But his legal luck hasn’t held up against another government entity: the IRS.

Just before turkey day, Green got word that a federal appellate court agreed with the IRS argument that much of his settlement was for punitive damages, which are taxable,

The court ruled Green owes Uncle Sam $3.2 million in taxes and penalties. Green says the IRS has already taken $3.5 million of his assets.

Below is a condensed time line of Green’s legal victories and losses.

The Houston Chronicle has more on Green’s legal battles, both with the state of Texas
and then the IRS, as well as a complete chronology of the case in this article.