What are the IRS whistleblowing rules?

The Internal Revenue Service whistleblowing rules are designed to reward people who provide information leading the IRS to recover unpaid or underpaid tax obligations. The IRS issued updated whistleblowing procedures in 2012, and as we have come to expect from the IRS, the procedures for seeking a reward are somewhat complicated. The experienced attorneys at Thornton Law Firm LLP have reviewed the rules extensively and are prepared to assist you in pursuing an IRS whistleblower claim.

Thornton Law Firm LLP provides quality legal representation to SEC whistleblower clients nationwide. Call us at 1-888-491-9726 or contact us online today.

Who can get a reward?

IRS rules allow potential rewards for informants who provide specific, credible information to the IRS if the information results in the collection of unpaid or underpaid taxes, penalties or interest in excess of certain threshold amounts.

The IRS awards compensation for claims properly filed under IRS rules regarding unpaid tax obligations. The IRS does not provide compensation for claims of securities fraud under SEC whistleblowing rules or any other violation of state or federal false claims acts.

What do I get for being an IRS whistleblower?

The federal internal revenue code (IRC Section 7623(a)) allows the IRS to give the following rewards to fraud informants:

  • $2 million threshold — If the taxes, penalties, interest and other amounts in dispute exceed $2 million and you meet a few other qualifications, the IRS rewards you with 15 to 30 percent of the amount collected.
  • Individual income greater than $200,000 — If the case involves the unpaid tax obligations of an individual whose annual gross income is more than $200,000, you can receive up to 15 percent of the amount collected with a cap of $10 million.

If you disagree with the outcome of a claim, you may be eligible to appeal to the tax court.

Why do I need an attorney to file an IRS whistleblowing claim?

Despite laws intended to give whistleblowers incentives to come forward and to protect informants from negative consequences, filing a whistleblower claim is still a big deal. IRS claims can be problematic for several reasons including the sheer volume of claims the IRS receives. One of our experienced IRS whistleblowers attorneys can help you navigate the process and minimize any negative consequences of being a whistleblower.

When you engage our attorneys, we take the following steps to ensure the success of your claim:

  • Evaluating the information in your possession
  • Conducting additional investigations to maximize your potential reward
  • Preparing your claim to meet IRS requirements
  • Managing your claim throughout the IRS investigation
  • Protecting your anonymity
  • Enforcing the law prohibiting retaliation against you for stepping forward

Let Thornton Law Firm LLP ensure that your claim doesn’t get lost in the quagmire of IRS whistleblower claims received by the IRS annually.

Contact Boston whistleblower lawyers to arrange a free consultation

Thornton Law Firm LLP provides quality legal representation to SEC whistleblower clients nationwide. We offer free consultations and work on a contingency-fee basis. You don’t pay if we don’t win your case. Call 1-888-491-9726 or contact us online to arrange a free consultation. We’re here when you need us most.