IRS Whistleblower Program
The IRS Whistleblower Program pays whistleblowers 15 to 30% of government recoveries that result from the whistleblower’s reporting to the IRS Whistleblower Program.
History of the Tax Whistleblower Program
The Tax Relief and Health Care Act of 2006 created an IRS Whistleblower Office dedicated to working exclusively with whistleblowers, and providing eligible whistleblowers with a share of government recoveries. While the IRS had a whistleblower program prior to 2006, that program was largely ineffective and had no provision for a guaranteed reward. The False Claims Act, meanwhile, does not permit claims to be asserted for tax liabilities. A few states, most notably the State of New York, have their own tax whistleblower laws that deal with non-payment of state taxes.
Elements of an IRS Whistleblower Case
To be eligible for an award, whistleblowers must provide specific and credible evidence that a taxpayer is avoiding or underpaying a tax obligation to the federal government, whether fraudulently or otherwise, and that information must substantially contribute to the government’s recovery of at least $2 million, including interest and penalties.
Because whistleblower rewards are only available when the amounts recovered are substantial, most successful claims have involved large tax avoidance schemes, corporate tax fraud, and fraud by high net worth individuals. Read Contact us for a Confidential Consultation.