Award Determination Appeals Offer Whistleblowers Hope

A Forbes article written by another whistleblower attorney is reporting the first settlements following appeals of award determinations by the Internal Revenue Service whistleblower program. The outcomes are remarkable because the IRS section 7623(b) program has been routinely criticized over the past few years for the dearth of payments given the sheer number of tips.

This may be part of a trend that reinvigorates the awards program. The most recent annual report showed nearly double the monetary awards were made in Fiscal Year 2015 over the year prior. The release of the IRS report garnered a positive press release by Senator Grassley on the stated improvements and increase in awards.

The cases cited by the Forbes article involved Whistleblower 21276-13W v. CIR and Whistleblower 10949-13W v. CIR. In both of these cases, the tax whistleblower received a favorable opinion from the Tax Court and then proceeded to work with the IRS to a full or partial settlement.

Congress has offered the right to appeal award determinations not only to IRS whistleblowers but also to individuals utilizing the SEC and CFTC programs created following their authorization in Dodd-Frank. The informant can gain access to certain information regarding the case which may allow them to challenge the government’s stated reasons for denial or a lower percentage award. In the case of the SEC and the CFTC, the whistleblower may also get access to this information earlier in a challenge of the preliminary determination.

If you have questions about this decision or information that could prove useful to the Internal Revenue Service’s tax enforcement efforts, please call 1-800-590-4116 to speak to one of our IRS whistleblower attorneys.

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