The IRS Whistleblower Program provides monetary incentives for persons who voluntarily provide the IRS with specific credible information about possible violations of the Internal Revenue Code that result in the collection of taxes, penalties, interest, or other amounts from a noncompliant taxpayer. IRS whistleblower rewards can be up to 30% of the additional tax penalty and other amounts the IRS collects.
The IRS program provides for two 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, and, if the case involves an individual, his or her annual gross income must be more than $200,000; or
- 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.
Call 1-800-590-4116 to speak to a McEldrew Young whistleblower attorney about reporting tax evasion to the IRS.
Protecting Whistleblower Confidentiality
The IRS will, as a matter of policy, attempt to keep the whistleblower’s identity anonymous. However, their commitment is qualified, and they tell 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 tax whistleblower attorney can evaluate your case to determine and advise you whether it is likely that you would be called as a necessary 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 our client anonymity. 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.
Very Different than the False Claims Act
The False Claims Act is the nation’s leading law against fraud. But tax evasion is specifically excluded from the federal law allowing qui tam lawsuits. Instead, Congress created a bounty program for tax whistleblowers. The U.S. pays for tips that the government uses to successfully recover funds from the subject of the tip. It retains control over whether an enforcement action seeking additional funds is brought.
Our attorneys have helped clients report more than $500 million in unpaid taxes and tax liabilities to the Internal Revenue Service. This information is currently under active investigation by the IRS.
Eric Young is a nationally recognized IRS whistleblower lawyer. Eric and his law firm, then known as the Young Law Group, represented the first recipient of an award under section 7623(b) by the Internal Revenue Service whistleblower program. Following our name change to McEldrew Young, our Philadelphia attorneys continue to represent individuals in cases of tax fraud arising nationwide.
The IRS has only paid out a handful of awards under § 7623(b). Eric Young represented the first recipient.
Watch the video below. Eric was approached by an accountant who told the IRS about tax evasion at a Fortune 500 company. After two years of inquiries by the accountant, Eric went to work and the IRS paid out $4.5 million for the information.
Eric also served as an expert in the case for the $104 million award for Bradley Birkenfeld.
When the attorneys for Birkenfeld needed an expert, they approached Eric. He is widely recognized for his work in the field and is frequently interviewed by media publications when news breaks on the IRS whistleblower program.
Commentary in the Media
The IRS Pays Whistleblowers to Turn in Tax-Evaders, Yahoo Finance, February 24, 2017
TAS Calls for Earlier Start for Whistleblower Proceedings, Tax Analysts – January 7, 2016
Blowing the Whistle on Tax Cheats, Wall Street Journal, September 4, 2015
IRS Releases Whistleblower Final Regs, Andrew Velarde, Tax Analysts Tax Notes Today, August 8, 2014
Roundtable Favors Changes to Ethics Code for Accountants to Allow Reporting of Illegal Acts – Accounting Today, July 10, 2014
A course correction for IRS whistleblower program – The Hill – March 12, 2013
More whistleblowers reporting suspected tax fraud to the IRS – New England In-House – May 2, 2012
IRS Stingy With Whistleblower Payouts, Slow to Follow Up on Tips – Bloomberg, October 4, 2011
IRS Whistleblower Program Faulted – The Wall Street Journal – September 10, 2011
How to Turn In a Tax Cheat – Marketwatch, September 6, 2011
Taxes: How To Turn In Your Neighbor to the IRS – The Wall Street Journal – September 3, 2011
$4.5M whistleblower award for CPA – Accounting Today, May 1, 2011
First payment made to an IRS whistleblower – CPA Magazine April 12, 2011
Whistleblower given $4.5m award by IRS – Boston Globe, April 9, 2011
IRS Awards $4.5M to Whistleblower – Fox News, April 08, 2011
Accountant Wins Tax Whistleblower Award, Counsel Says – Compliance Week, April 08, 2011
IRS and Whistleblower News
Our Whistleblower Law Practice
Our whistleblower attorneys have helped numerous employees and ex-employees report misconduct by their employer under the nation’s whistleblower laws. Attorneys at McEldrew Young have assisted the United States with the recovery of billions of dollars lost due to fraud. If you have questions about the process, please call or email us. We’re here to help you and we will respect your confidentiality to the utmost at all stages of the process.