IRS whistleblowers who provide information about tax fraud or tax underpayments that exceed $2 million to the Internal Revenue Service can do so confidentially and receive awards.
The IRS whistleblower reward program
The tax fraud whistleblower law establishes certain provisions regarding whistleblowers who provide the IRS with information about tax fraud or tax underpayments:
- IRS Whistleblowers may receive a reward of 15 percent to 30 percent of the amount the IRS collects as a result of information about tax fraud provided to the IRS.
- To qualify, the whistleblowers must provide information about tax fraud or tax underpayments that exceeds $2 million (counting tax, penalties and interest).
- The annual income of an individual tax cheat must exceed $200,000.
- If a reward from the IRS fails to recognize the whistleblower’s contribution, the whistleblower may appeal the reward amount to the U.S. Tax Court.
- If the whistleblower initiated or planned the tax fraud, the IRS may reduce or deny a reward. A IRS whistleblower reward also may be reduced if the whistleblower’s allegations have been previously disclosed.
Whistleblowers are confidential informants to the IRS:
The IRS will keep the whistleblower’s identity confidential.
The IRS pays rewards after it completes an investigation into the tax fraud or tax underpayments, collects all amounts owed in the case and the matter officially is closed.
If you have information about tax fraud that exceeds $2 million and would like to know how McCauley Law Office, P.C. can help you, please email or call us.