IRS Whistleblower Rewards

Under section 7623(b), the range for an IRS whistleblower award is between 15 and 30%. The regulations say that the IRS is supposed to consider the extent to which the claimant’s information substantially contributed to the underlying actions. There is a set of positive factors to support increasing the reward, such as the whistleblower acted promptly to inform the IRS of non-compliance or of a type previously unknown information or the information thoroughly explained the allegations and the whistleblower cooperated. There are also negative factors that could impact the reward, including that the whistleblower somehow was involved in underpaying the tax or profited from the scheme.

If you have any questions regarding IRS whistleblower rewards, reach out to an experienced lawyer today. An attorney could inform you about the legal process and how to recover a reward.

Preliminary Award Recommendation

The whistleblower has 30 days from the preliminary award recommendation to respond. The whistleblower can waive any rights at this point and allow the IRS to make its determination or insist upon reviewing IRS material and/or commenting on it prior to the IRS making a final award determination. Consult with a knowledgeable attorney for more information about the preliminary award recommendation and its impact on IRS whistleblower rewards.

How Does the IRS Program Differ From the False Claims Act?

The term Qui Tam is shorthand for a longer Latin phrase that represents a unique set of rights. Those rights include the fact that the individual filing the case has the ability to pursue the case in court when the government does not pursue the case. It is an independent course of action.

The IRS whistleblower program is not something that a whistleblower files in court. The whistleblower files with the IRS, and the IRS makes the determination as to whether or not anything should be done to pursue the allegations. Therefore, there is no independence if the IRS determines there is nothing there. It is up to the IRS.

Benefits of Consulting an Attorney

Contacting a lawyer regarding IRS whistleblower cases is the ideal thing to do in all issues for determining whether or not there even is a claim, determining how to present such a claim in as persuasive a manner as possible, and being able to review the facts in the law pertaining to that claim. A matter of serious tax fraud that will trigger award provisions under IRSC Sections 7623(b) is not a small matter and is likely to involve complications requiring counsel to help with them. A lawyer could do a review of the situation and help the whistleblower recover the reward.

It is almost always helpful to have counsel in any legal proceeding and the more complicated, the more difficult the legal proceeding, the more someone needs counsel. The IRS whistleblower program is certainly no exception to the general rules for having an attorney help participate.

Call today for more information about IRS whistleblower rewards. An accomplished lawyer could help you understand the legal process and your rights.

IRS Whistleblower Program