ATTORNEY NEWSLETTER
IRS Whistleblower Rewards Program
Targeting Off-Shore Tax Avoidance
Fighting Against Employer Retaliation
The Internal Revenue Service (IRS) rewards people who blow the whistle on corporations who fail to pay the tax that they owe. I.R.C. § 7623(b). During 2021, the IRS made 179 award payments to whistleblowers totaling $36,144,926. Although 2022 reward figures have not been announced, at least one large $8.8 million reward was granted to a whistleblower whose information enable the IRS to recover $35 million in taxes owed to the government for a single corporate taxpayer. One primary form of tax avoidance is offshore schemes that shelter income from U.S. taxation. These schemes also often violate other federal laws, including banking law. See, e.g., Reports of Foreign Bank and Financial Accounts Act (FBAR) (31 U.S.C. § 5314); Foreign Account Tax Compliance Act (FATCA) (26 U.S.C. § 1471 et seq.). Evans Law Firm, Inc. represents individuals with credible information of offshore tax avoidance schemes or other tax fraud and can help you submit information of tax fraud and all related violations of the law to the government and present your evidence with a goal toward a reward if the IRS recovers. If you have credible information of tax fraud, call us today at (415)441-8669. Our toll-free number is 1-888-50EVANS (888-503-8267).
Whistleblower Cases Under Internal Revenue Code Section 7623(b)
The rules governing IRS whistleblower cases offering rewards are found at Internal Revenue Code IRC Section 7623(b) – Whistleblower Rules. The statute provides:
- Reward percentages to whistleblower with a range between 15% to 30%, with no limit on the dollar amount of the award.
- The amount in dispute must exceed $2 million. If the taxpayer is an individual, the individual’s gross income must exceed $200,000 for any taxable year at issue in a claim.
- The base for calculating a whistleblower’s percentage award includes penalties and interest the defrauding taxpayer owes.
Although the potential awards can be substantial, IRS whistleblower cases take a long time. A recent Tax Court case held that the estate of a whistleblower can pursue claims for a reward if the whistleblower dies before his or her case is resolved. In Insinga v. Commissioner of Internal Rev. Service, 9011-13W, 2021 WL 4983084 (U.S. Tax Ct. Oct. 27, 2021), the United States Tax Court found that although the decedent had passed away while his whistleblower case was still pending, his estate could pursue the whistleblower’s claim in his stead.
Fighting Back Against Employer Retaliation
Employees who discover their employer’s tax evasion maneuvers are protected from retaliation by their employers. See 26 U.S.C. § 7623. Despite this protection, employers may still retaliate. If they do, employees can fight back. Evans Law Firm, Inc. can represent you in any suit for employer retaliation in addition to representing them before the IRS with their whistleblower claim. Remedies for wrongful retaliation by an employer include reinstatement, double back pay, interest, and attorneys’ fees and costs for bringing your lawsuit. See 26 U.S.C. § 7623.
Contact Us
Ingrid M. Evans represents individuals with credible, original information of any kind of tax fraud, including offshore tax avoidance measures, and use of foreign corporations and accounts to avoid taxation or the like. Ingrid can be reached at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our toll-free number is 1-888-50EVANS (888-503-8267). Ingrid also handles whistleblower actions under the Financial Reform, Recovery, and Enforcement Act (FIRREA/FIAFEA), the Commodities Futures Trading Commission Whistleblower Program, the Securities and Exchange Commission Whistleblower Program, False Claims Act cases, the FINRA Whistleblower Office and the California False Claims Act.
