IRS Whistleblower Program Tip: Make It Easy for the IRS By Tod Aronovitz | 05/02/13 | 0 Comment

As I reported in my February 15 blog post (IRS Whistleblower Program Offers Rewards for Reporting Tax Cheats), if you know of someone who is not paying all or part of their taxes to the U.S. government, you may be eligible for a whistle blower program award if you report the tax cheats to the IRS. The IRS Whistleblower Program has been looking for significant cases of tax avoidance by high net worth individuals, corporations, or other entities.

IRS whistleblower payments of up to 15 to 30 percent of the amount recovered are made when the tax dispute involves $2 million or more in payments. Individual taxpayers must have a minimum $200,000 gross income in order to be subject to a whistleblower claim. Smaller amounts of recovered tax payments or individual income levels may still trigger a whistle blower award; although, the percent paid will be less.

To qualify for whistleblower awards, the information provided must allow the IRS to collect taxes, interest or penalties from the alleged non-compliant taxpayer.  However, whistle blowers in the program are often unsure about the status of their submissions because of the length of time it takes the IRS to process a case.

Here are some things whistleblowers need to keep in mind:

  • Be sure to get a claim number from the IRS after filing Form 211.  If you don’t have one, contact the WBO and get one, or re-file your case.
  • Don’t hold back—provide all relevant and supporting information and material you have up front.
  • Submit information in a clear, labeled/tabbed, uncomplicated format.
  • Provide any new or updated information or material without delay.
  • Explain to the IRS how they may consider proceeding with the submission by providing suggestions of key people to interview, where documents are kept, etc.
  • A whistleblower attorney can help you provide the IRS with a legal analysis of your submission, explaining what tax laws have been violated.
  • By law, the taxpayer has the right to appeal, and that appeal process may be lengthy.
  • Remember, once past the original processing, it can still take a long time until there are collected proceeds.

IRS Acting Commissioner Steve Miller expects more focus and tighter deadlines from the IRS in dealing with whistleblower claims, including the initial processing and award determination once funds have been collected by the IRS. However, IRS personnel often have massive workloads under tight budgets.  In the end, make it less complicated and demanding for them to reward you.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami, Florida law firm of ARONOVITZ LAW routinely works with Florida whistleblowers to document fraud against the government. Click on the link to read more about our Miami Whistleblower / Qui Tam law firm services.

Contact Miami whistleblower attorney Tod Aronovitz for a confidential discussion of your potential Florida whistleblower or qui tam case.