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→IRS Whistleblower Reward Program
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== IRS Whistleblower Reward Program == | == IRS Whistleblower Reward Program == | ||
The IRS estimates that the United States loses more than [$450 billion] per year to tax evasion. To combat tax fraud, Congress enacted legislation providing robust incentives for whistleblowers to report tax fraud. Under [https:// | The IRS estimates that the United States loses more than [https://www.irs.gov/pub/irs-soi/p1415.pdf $450 billion] per year to tax evasion. To combat tax fraud, Congress enacted legislation providing robust incentives for whistleblowers to report tax fraud. Under [https://web.archive.org/web/20220313073150/https://zuckermanlaw.com/wp-content/uploads/2020/06/26-USC-%C2%A7-7623.pdf 26 USC § 7623(b)], the IRS is '''required to issue an award to tax whistleblowers of 15% to 30%''' of proceeds collected from tax fraud or tax underpayments if: | ||
* the whistleblower provides a tip that the | * the whistleblower provides a tip that the '''IRS decides to take action''' on (a whistleblower cannot force the IRS to act on a tip); | ||
* the amount in dispute (the tax underpayment, including interest and penalties) | * the amount in dispute (the tax underpayment, including interest and penalties) ''exceeds $2 million''' (if the taxpayer is an individual, his or her gross income must exceed $200,000 for at least one of the tax years in question); and | ||
* the | * the '''IRS collects tax underpayments''' resulting from the action (including any related actions). | ||
In enacting the IRS whistleblower bounty legislation, Congress provided mandatory awards to tax whistleblowers for high-quality tips. Section 7623(b) suggests a focus on '''large-scale tax fraud''' in that Congress removed the previous cap of $10 million on IRS whistleblower awards. Thus, if a whistleblower meets the requirements above, the whistleblower may be able to receive a substantial payout. | In enacting the IRS whistleblower bounty legislation, Congress provided mandatory awards to tax whistleblowers for high-quality tips. Section 7623(b) suggests a focus on '''large-scale tax fraud''' in that Congress removed the previous cap of $10 million on IRS whistleblower awards. Thus, if a whistleblower meets the requirements above, the whistleblower may be able to receive a substantial payout. | ||
On July 2, 2019, the Taxpayer First Act was signed into law. The law provides tax whistleblowers, among other things, [https://www. | On July 2, 2019, the Taxpayer First Act was signed into law. The law provides tax whistleblowers, among other things, [https://www.zuckermanlaw.com/irs-tax-fraud-whistleblower-protection-law/ significant protections against retaliation]. Read more about the tax whistleblower protection law [https://www.zuckermanlaw.com/irs-tax-fraud-whistleblower-protection-law/ here]. | ||