Tax Evasion Whistleblower Reward
Are You Eligible to Seek a Reward Under the IRS Whistleblower Program?
Under the Internal Revenue Service (IRS) Whistleblower Program, monetary awards are available for reporting tax fraud, tax evasion, and other violations of the United States’ internal revenue laws. Eligible individuals who report tax law violations can receive an IRS whistleblower reward of between 15% and 30% of any funds recovered.
If you are prepared to report tax evasion or tax fraud to the IRS and are interested in seeking a monetary award, we can help. Our attorneys have experience helping whistleblowers file complaints with agencies across the federal government. We help tax fraud whistleblowers report violations of the Internal Revenue Code (IRC), Bank Secrecy Act (BSA), and other relevant federal laws, and we use our experience to help maximize our clients’ whistleblower award eligibility.
IRS Whistleblower Award Determinations: How the IRS Calculates Whistleblower Compensation
Individuals who are interested in seeking monetary awards for reporting individual or corporate tax fraud must file a formal claim with the IRS Whistleblower Office. The IRS Whistleblower Office strictly protects whistleblowers’ information, and the Office pays monetary awards to eligible whistleblowers who assist with the successful enforcement of the nation’s tax laws.
Here is some key information about the IRS Whistleblower Program process for individuals who are interested in seeking a whistleblower award:
Whistleblower Eligibility
Whistleblower awards are available to eligible individuals who provide information about tax non-compliance that leads to a successful enforcement action. The IRS Whistleblower Office has established strict eligibility criteria to ensure that awards are only issued in appropriate cases. These eligibility criteria include:
- Providing specific and credible information about a federal tax law violation;
- Providing information that warrants further investigation (i.e., that is indicative of a significant tax law violation);
- Assisting with a successful enforcement action that recoups losses from a tax underpayment and/or results in civil forfeitures or criminal fines.
Whistleblowers who satisfy the IRS Whistleblower Office’s reporting requirements and file a claim based on independent knowledge or analysis are eligible for compensation under the Office’s award program. Depending on the circumstances, IRS whistleblowers may be eligible for either discretionary or mandatory awards.
Discretionary Awards
Discretionary awards are available in cases in which the collected proceeds are less than $2 million. Under Section 7623(a) of the Internal Revenue Code, the U.S. Treasury Department is “authorized” to pay awards as deemed necessary for either (i) “detecting underpayments of tax;” or, (ii) “detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same.”
Mandatory Awards
Mandatory awards are available in cases in which the collected proceeds are $2 million or more. This includes proceeds collected in the US Tax Court, in another federal court, or via administrative enforcement or settlement. When the Internal Revenue Code’s mandatory award provisions apply, the IRS Whistleblower Office is required to compensate a tax whistleblower who provides information that helps close the tax gap and/or results in the recovery of civil or criminal penalties.
Award Percentage Calculations
In all cases, IRS whistleblower rewards typically range from 15% to 30% of the amount recovered. When whistleblower submissions lead to liability for IRS tax fraud, tax evasion, or other federal tax violations, specific reward percentages are determined based on factors including:
- The volume and value of the information provided in the whistleblower’s original submission
- The volume and value of any further information provided by the whistleblower
- The level of additional assistance the whistleblower provides during the IRS’s investigation
- The total amount of funds the IRS recovers
- The extent to which the case furthers the IRS’s interest in effective tax administration
When we represent IRS whistleblowers, we work to help our clients secure the maximum award available under the IRS award program. We prioritize our clients’ financial recovery throughout the process, from preparing our clients’ initial whistleblower complaints to negotiating with the IRS after successful enforcement actions.
Why to Choose Our IRS Whistleblower Law Firm to Help You Come Forward
If you are eligible to seek a tax evasion whistleblower reward, your choice of legal representation matters. Here are just some of the reasons why you should choose our law firm to represent you:
1. We Will Help You Make Informed Decisions
From deciding whether to come forward to deciding how best to work with the IRS, our attorneys will help you make informed decisions throughout the process. If you become eligible to receive a whistleblower reward, our attorneys will help you make an informed decision about whether to accept the IRS’s offer or keep pursuing a larger reward amount.
2. We Will Maintain Strict Confidentiality
We will also help you maintain strict confidentiality throughout the process. We will only share information that you expressly authorize us to share, and we will work with the IRS to protect your identity by all means available. The IRS is legally required to protect a whistleblower’s identity, and our attorneys can help ensure that your identity is not inadvertently disclosed.
3. We Will Communicate with the IRS on Your Behalf
As your whistleblower attorneys, we will communicate with the IRS on your behalf. If the IRS decides to investigate based on the information you provide, our attorneys will work alongside the IRS during its investigation and use their experience to help the IRS build a case for civil or criminal enforcement.
4. We Will Rely on Our Experience as Federal Fraud Prosecutors
Several of our attorneys prosecuted fraud and other white-collar crimes at the U.S. Department of Justice (DOJ) before entering private practice. Today, they use the insights gained from this experience to help whistleblowers help the federal government.
5. We Will Prioritize Your Best Interests
As our client, your best interests will always come first. We will advise you with your best interests in mind, and we will take legal action to protect your best interests if necessary. We are 100% committed to protecting whistleblowers’ rights—including their right to compensation following successful enforcement actions.
FAQs: Filing a Whistleblower Claim with the IRS to Expose Tax Noncompliance
When are awards paid to tax evasion whistleblowers?
Tax evasion whistleblowers are eligible to receive awards when the information they provide to the IRS Whistleblower Office leads to a successful administrative, civil, or criminal enforcement action. If the IRS or DOJ pursues a successful enforcement action based on the information an eligible whistleblower provides, the whistleblower will be entitled to seek an award of between 15% and 30% of the funds recovered from the targeted taxpayer.
What is the Tax Relief and Health Care Act (TRHCA), and why is it important for tax evasion whistleblowers?
The Tax Relief and Health Care Act (TRHCA) is a federal statute enacted in 2006 that overhauled the IRS Whistleblower Program. Under the current iteration of the program, eligible whistleblowers can receive sizable monetary awards when they provide information that leads to a successful enforcement action, and the IRS is required to pay whistleblowers who assist with successful enforcement actions involving delinquent tax liability of $2 million or more.
How do I seek a monetary reward for reporting federal tax evasion?
Seeking a monetary reward for reporting federal tax evasion involves filing a formal whistleblower claim with the IRS Whistleblower Office. Tax evasion whistleblowers must strictly comply with the Office’s filing requirements; and, to maximize their reward eligibility, they must be prepared to work effectively with the IRS during its investigation.
Do I need an attorney to seek a whistleblower reward from the IRS?
While not legally required, hiring an attorney to help you seek a whistleblower reward from the IRS is strongly recommended. Working with the IRS to expose tax evasion, tax fraud, or another violation of the United States’ internal revenue laws can be a complex and time-consuming process. Our attorneys have extensive experience in this area, and we can work effectively with the IRS while also establishing, preserving, and helping to maximize your reward eligibility.
What documentation do I need to file a tax evasion whistleblower claim with the IRS?
You do not need any specific type or amount of documentation to file a tax evasion whistleblower claim with the IRS. To qualify as a whistleblower, you must be able to provide sufficient evidence to demonstrate that further investigation is warranted.
Whether this evidence takes the form of tax returns, internal financial records, or other documentation will depend on the specific violation you are prepared to disclose. When you engage our IRS whistleblower law firm to represent you, our attorneys will work with you one-on-one to establish your eligibility and file your complaint with the IRS Whistleblower Office. We will then work with the IRS on your behalf as it investigates the allegations you have put forward.
Speak with a Senior IRS Whistleblower Attorney in Confidence
If you are interested in learning more about seeking a tax evasion whistleblower reward from the IRS, we encourage you to contact us promptly for a free initial consultation. To speak with one of our senior IRS whistleblower attorneys in confidence as soon as possible, call 866-320-3959 or tell us how we can get in touch online today.