ATTORNEY NEWSLETTER
The IRS Whistleblower Reward Increased in Fiscal 2016
The IRS announced that rewards paid to whistleblowers from October 1st, 2015 to September 30, 2016 will have a 6.8 percent deduction. There is a similar deduction from the award every year, typically taken to pay outstanding government debts, and this year’s rate actually means that whistleblowers will net a greater reward for the same information in 2016 as they would have in 2015, and the sequestration rate has been steadily dropping. The whistleblowers are helping the government to report the fiscal abuse executed by a delinquent taxpayer. They provide information to denounce the fraud or an underpayment of tax, then the IRS Whistleblower Office give them between 15-30 percent of the amount of collected fees, which include the amount of tax, penalties, interest and additions to tax.
The law passed in 1985 known as “The Balanced Budget and Emergency Deficit Control Act of 1985”, allows the sequestration of the whistleblower award payments. The sequestration rate for fiscal year 2016 is 6.8 percent amount of collected fees, calculated based on a number of factors.
This reduction should not discourage the future whistleblower to report the fiscal abuse to a California IRS whistleblower lawyer. Even with the sequestration, the reward could be quite lucrative when you denounce a fiscal diversion over 1 million dollars, the IRS will pay to the whistleblower $279,000 fee.
H2: Contact Us: Evans Law Firm
If you believe that you have knowledge of a company that may be defrauding the government, for example by overbilling Medicare, selling faulty products, or by other means, please contact Evans Law Firm. Evans Law Firm’s practice areas include qui tam and whistleblower law, insurance, healthcare, and banking fraud, financial elder abuse, and nursing home abuse. We can be reached by phone at (415) 441-8669, or by email at info@evanslaw.com.
