What is an IRS Whistleblower Claim & How Do I File It?

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Are you familiar with what an IRS Whistleblower is? Do you know what a whistleblower claim is or how to file it? Many individuals have heard of whistleblowing in various circumstances, but not many are aware of the IRS Whistleblower program, what classifies as a circumstance that would need to be reported, and what happens when people file a whistleblower claim. Let’s take a closer look at the IRS Whistleblower process, why a tax attorney or tax lawyer can help, and how Central Tax Law plays a part. 

The IRS Whistleblower Program

In the United States, paying taxes is mandatory for individuals and businesses, and failing to pay those taxes is illegal. The IRS Whistleblower Program was created to process tips received from individuals who spot tax problems. Essentially this program established an incentive for people to report individuals and businesses who are failing to file accurate tax returns and pay taxes, otherwise known as tax evasion. This incentive is a payment of 15 to 30% of what the IRS collects from whoever was evading taxes. Depending on the amount that had been evaded, and the amount that IRS Collections has recovered, this can be a hefty payout! 

Criteria for an IRS Whistleblower Case

There are certain criteria that need to be met in order for an IRS Whistleblower case to be made. In order for these claims to even be considered, they must be submitted with certain credible evidence that proves an individual or business is failing to pay the correct amount of taxes. This evidence does not necessarily need to prove that this tax evasion is intentional, but it does need to be substantial and lead to a recovery of over $2 million for businesses and $200,000 gross income for individuals. 

Filing an IRS Whistleblower Claim

There is a branch of the IRS that specifically deals with whistleblower claims. This branch has extensive knowledge of the laws surrounding tax evasion and the act of whistleblowing and exists solely to work on these large evasion and fraud claims. When a claim is filed, it goes directly to this branch of the IRS.

Once a claim has been filed with the IRS Whistleblower branch, they begin to look into the validity of the claim. They start by assessing the evidence you have collected and submitted to verify if it is a claim worth looking into further. If it is, then they assess whether an audit should be conducted or if enforcement and consequences need to be immediately pursued. 

Regardless of what the next steps are, the IRS will typically interview the whistleblower to gather further information as well as to determine the whistleblower’s connection to the tax evasion or fraud case. After this, the whistleblower has little to no interaction with the case proceedings. 

Central Tax Law & IRS Whistleblower Claims

When filing a whistleblower claim, having an experienced attorney with an accounting degree can prove to be extremely beneficial. Not only are they knowledgeable in the laws, but they are also familiar with the entire process, and can serve as a guide for you and what you are supposed to do along each step of the case. In addition, they can assist with connecting any relevant information you have to the existing tax evasion or fraud case, establishing your usefulness as an informant, and potentially increasing your rewards. 

If you find yourself in a position to submit an IRS Whistleblower claim, and you would like legal representation in the matter, reach out to Central Tax Law. The firm has the experience you need to make the most of your whistleblower case. 

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