IRS Whistleblowers

Overview Of The IRS Whistleblower Program

The IRS Whistleblower Office administers the IRS whistleblower program which provide monetary rewards to individuals who report IRS violations.

The Whistle-blower Advocate provides legal representation to individuals who know IRS violations and desire to blow the whistle on this misconduct. 

History of the Tax Whistleblower Program

In the past, IRS whistleblowers could only receive monetary awards if they had provided information leading to the recovery of $2 million or more in taxes. This meant that many people who reported wrongdoing within the IRS did not qualify for reward money. It is estimated that over 90% of all IRS whistleblowers never received any award money.

This situation began to change in 1996 when Congress passed the Taxpayer Bill of Rights 2nd Act. Under this act, anyone who provides information about tax fraud to the IRS can now be eligible for up to 30% of the amount recovered by the IRS.

However, there are still some limitations on the amount of money you can get. For example, you cannot get more than 310% and not less than 15% of the total amount collected from the person or business involved. Furthermore, you must have filed an income tax return for the year in question. Additionally, the IRS will only consider your claim if the information you provide leads to the recovery of $1 million or more in taxes or penalties. 

Process for Evaluating Whistleblower's Claim

To qualify for the rewards program, a whistleblower must file a complaint with the IRS within 180 days after discovering the violation. If the IRS determines that the complaint is valid, it will send the whistleblower a letter notifying them of the decision. The whistleblower then has 90 days to appeal the decision. After that, if the IRS still decides against the claim, the whistleblower may request a hearing before an administrative judge. At the hearing, the IRS will present its case against the whistleblower. Then, the whistleblower will be allowed to respond. Finally, the administrative judge will make a final determination.

What Are My Responsibilities Under The Law?

Whistleblowers who come forward with information regarding violations of federal tax laws must report the breach within 30 days of discovering it. They may then receive monetary awards from the IRS if they meet specific requirements.

What Violations Are Now Covered As A Result Of The Amendments To The IRS Tax Law?

To qualify for the reward, the individual must provide information that leads to the detection and prosecution of one or more individuals who have violated the Internal Revenue Code. These violations include fraud, failure to file returns, failure to pay taxes, evasion of payment of taxes, and false statements.

How does the IRS whistleblower program work?

Whistleblowers who come forward with information regarding illegal activity by the IRS may receive monetary awards from the IRS. These awards vary depending on the type of violation committed and the amount recovered by the IRS as a result of the information provided. 

How do I become an IRS whistleblower?

Whistleblowers must report suspected violations of federal tax law by filing Form 211. This form requires information about the alleged infringement, including the name of the person who committed it, the date the violation occurred, and the amount of money involved.

What evidence does an IRS whistleblower need to provide?

Whistleblowers must prove that they had direct and independent knowledge of fraud or abuse by providing documentation from their employer, bank statements, and records of electronic communications. They also need to show that they tried to report the information internally before coming forward.

FAQs

  • What is the IRS Whistleblower Program?
  • What Types Of Rewards Can Be Awarded Under the IRS Whistleblower Program?

A whistleblower can receive between 15-30% of the amounts recovered as a result of the information provided. Thus, the greater the fraud reported, the greater the reward a reporting individual will receive. 

How Do I Know Whether My Case Will Qualify For A Reward?

To determine whether your case qualifies for a reward, you must fill out Form 211. The IRS Whistleblower Office will review your claim.

  • Is There Any Limit On How Much Money I Can Receive As A Reward?

No. The IRS has no limit on how much money you can receive as a reward.

Do You Have an IRS Whistleblower Claim to Report? 

To become a whistleblower, you must file Form 211 with the IRS. This form requires you to provide information about yourself, your allegations, and any documentation you may have. If you decide to pursue a claim, you will need a lawyer to represent you before the IRS.

For more information, you can contact The Whistleblower Advocates at (833) 310-3147 for a FREE, confidential consultation. We will review your case and let you know if you qualify for representation.

The Whistleblower Advocates - Philadelphia Office

123 S Broad St #1670-B
Philadelphia, PA 19109

Phone: (833) 310-3147

Our Office Location

We serve clients throughout the Delaware Valley including, but not limited to, those in the following localities: Pennsylvania including Berks County, Bucks County, Chester County, Delaware County, Montgomery County, and Philadelphia.

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