The IRS Whistleblower Program pays awards to people who provide specific credible information to the IRS regarding taxpayers that have not fully paid their taxes or who have committed fraud or evasion on their tax returns.
There are two prongs to the Whistleblower Program. The first prong pays a percentage of the proceeds collected as a result of the whistleblower information, the amount of which is solely within the IRS’ discretion. Under the first prong of the Whistleblower Program during fiscal 2016, the IRS paid 418 awards to whistleblowers in the gross amount of $61 million, a reduction in money paid out from the prior year, but an increase in the number of awards paid. In fiscal 2015, the IRS paid $103 million to whistleblowers.
The other prong requires the IRS to pay out between 15% and 30% of the proceeds collected if the taxpayer in issue meets the required criteria ($2 million in dispute for taxpayers with gross income of more than $200,000.00). Under the second prong of the Whistleblower Program, the IRS paid a total of 18 awards in fiscal 2016, another reduction over the prior year. In fiscal 2015, the IRS paid 19 awards.
Do you have credible information regarding a taxpayer that has underpaid his or her tax liability or has committed fraud or evasion on their tax returns? Contact us, we can help.