ATTORNEY NEWSLETTER
Changes To IRS Whistleblower Program
Targeting Off-Shore Tax Avoidance
Rewards Increasing
The Internal Revenue Service (IRS) rewards people who blow the whistle on corporations and individuals who fail to pay the tax that they owe. I.R.C. § 7623(b). The award percentage depends on several factors, but generally falls between 15 and 30 percent of the proceeds collected and attributable to the whistleblower’s information. In fiscal year 2020, the IRS issued over $86 million in awards to 169 whistleblowers. 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).
Recent Reforms
The Taxpayer First Act of 2019 made several important provisions to strengthen the IRS whistleblower process for reporting tax fraud, including changes pertaining to notification of case progress and protection for whistleblowers against retaliation:
Notification of a claim referred for examination
The IRS Whistleblower Office will notify the whistleblower when a case for which the whistleblower has provided information has been referred for audit or examination. Notification does not indicate that an audit or examination has been opened or whether the whistleblower will receive an award, but it does provide an update when a referral for audit or examination has been made.
Notification when a payment has been made
The IRS Whistleblower Office will notify the whistleblower when the taxpayer the whistleblower identified has made a tax payment with respect to which the whistleblower’s information relates. A final resolution of all tax matters may take several years from the date of notification of payment. Payments made by the taxpayer do not guarantee an award will be issued.
Requesting an update on the status and stage of a whistleblower claim
The IRS Whistleblower Office will provide written responses to written requests for information on the status and stage of the whistleblower claim submitted by the whistleblower or an individual with a properly executed Form 2848, Power of Attorney and Declaration of Representative PDF, on file. The written request must state that the whistleblower or power of attorney is requesting information on the status and stage of their claim and include the claim numbers for request. There is no online mechanism for checking the status of an IRS whistleblower case.
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. 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.
