IRS Whistleblower Program & Rewards
The IRS Whistleblower Program provides monetary incentives for individuals who voluntarily provide the specific credible information about possible violations of the Internal Revenue Code. If the information results in the collection of taxes, penalties, interest, or other amounts from a noncompliant taxpayer, a whistleblower can be rewarded up to 30% of the additional tax penalty and other amounts the IRS collects.
Types of Rewards
- The IRS will pay 15 to 30% of the amount collected if the taxes, penalties, interest and other amounts in dispute exceed $2 million, in cases involving individual taxpayers whose annual gross income exceeds $200,000.
- The IRS will pay up to 15% of the amount collected, up to $10 million, if the case involves an individual taxpayer with gross income of less than $200,000.
Protecting Whistleblower Confidentiality
The IRS will, as a matter of policy, make every effort to keep the whistleblower’s identity anonymous. However, the commitment to anonymity is qualified, and the IRS tells whistleblowers that it may identify them if they are an essential witness in a judicial proceeding or if ordered to do so by a court of competent jurisdiction. A good tax whistleblower attorney can evaluate your case to determine and advise you whether it is likely that you would be called as an essential witness should the IRS take the tax whistleblower case to trial. Eric Young secured the first ever mandatory tax whistleblower reward of $4.5 million for an accountant client, and we were able to protect maintain our client’s anonymity. To to this day, the public is still unaware of the identity of the person who received the first IRS tax whistleblower reward as a result of our efforts.