It has been some time since we have seen whistleblower attorneys make an announcement concerning an award by the Internal Revenue Service. However, we saw one today as a tax whistleblower received an award of $11.6 million dollars under the program.
The press release stated that the whistleblower wished to remain anonymous and that the individual was able to help the IRS recover tens of millions of dollars for the U.S. Treasury. The release identified the IRS as being interested in hearing information about corporate tax shelters and illegal offshore accounts.
The announcement is the first that has come since the new Director of the IRS Whistleblower Office, Lee Martin, took over. His predecessor, Stephen Whitlock, was the first director of the office and only recently moved to head the Office of Professional Responsibility.
The IRS whistleblower program, pursuant to section 7623(b), pays a mandatory reward of between 15 and 30 percent of the total proceeds collected by the IRS as a result of the information from an eligible person. Eric Young in our office represented the first individual to receive a reward under section 7623(b), which was put in place by Congress in 2006.
The IRS program has been criticized in the past few years by Senator Chuck Grassley and others for the limited number of awards that have been paid out based on information about tax evasion or noncompliance. However, the IRS has insisted over the past few years that there are more awards coming – it simply takes five to seven years to analyze, investigate, enforce and for appeal deadlines to pass.