‘Blowing the whistle’ for the IRS

posted on:
October 4, 2016

Lance Gould

The IRS Whistleblower Office, established by the Tax Relief and Health Care Act of 2006, exists to process tips received from individuals who have knowledge of tax issues in their workplace. More specifically, the IRS Whistleblower Office rewards those who blow the whistle on persons failing to pay the tax they owe. The IRS Whistleblower Office rewards whistleblowers with up to 30 percent of the monies collected. The IRS has provided guidelines and regulations for those wishing to blow the whistle.

Regarding the qualification for a whistleblower reward, the IRS is looking for solid information, not unsupported speculations. According to Internal Revenue Code 7623(b), the general range of the whistleblower award is 15 to 30 percent, mirroring the award range for the False Claims Act. There is no limit on the dollar amount the whistleblower may receive; however, there is one caveat, the amount in dispute must exceed $2 million. (If the taxpayer is an individual, the individual’s gross income must exceed $200,000 for any taxable year at issue.) If the whistleblower believes they are entitled to a larger reward, the whistleblower can appeal the award determination to the U.S. Tax Court.

The IRS Whistleblower Program significantly aides the tax system by encouraging compliance through deterrence and by reducing the tax gap. Since 2007, whistleblowers have helped the IRS collect more than $3 billion dollars in tax revenue. Accordingly, the IRS has rewarded more than $403 million to whistleblowers. The IRS Whistleblower Office receives thousands of tips each year; however, the majority of those tips are not actionable because they are either unreliable or vague. Even so, more than $103 million was rewarded to whistleblowers in FY 2015 alone.

Are you aware of tax problems in your workplace? If so, you may be eligible to become a whistleblower and receive a monetary reward for helping the IRS recover tax revenue. If you have any questions about whether you qualify as a whistleblower, please contact an attorney at Beasley Allen for a free and confidential evaluation of your claim. There is a contact form on this website, or you may email one of the lawyers on our whistleblower litigation team: Archie Grubb, Larry Golston, Lance Gould or Andrew Brashier.

26 U.S.C. § 7623
IRS Whistleblower Annual Report
IRS Whistleblower Informant Award
IRS Whistleblower Office At A Glance

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