The Awards Whistleblowers Receive in Tax Cases

Chad Silver

Chad Silver

Managing Partner of Silver Tax Group, author of the book "Stop the IRS". Practicing a variety of tax issues, regulations, laws and rights. Specializing exclusively on tax matters involving IRS audits, negotiation, settlements & compromises.

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On behalf of Silver Tax Group posted in Tax Crimes on Friday, April 6, 2018.

Michigan taxpayers need to understand how extensive the IRS whistleblower program is. Besides having massive support from other federal branches, the IRS is always enhancing its enforcement efforts.

The whistleblower program

Whistleblowers stand to profit by reporting on the wrongdoing of other taxpayers. The IRS even has an official form to assist whistleblowers in collecting awards for reporting tax irregularities. Whistleblowers can file Form 211 known as the Application for Award for Original Information with the Whistleblower Office.

Depending on the amount owed, a whistleblower can receive up to 30 percent of amounts collected by the IRS. In 2017, there were 242 whistleblower awards totaling $33.9 million. The IRS also reports collecting close to $3.6 billion in revenues because of whistleblower assistance.

There are also awards when dollar amounts do not meet certain thresholds. Even in smaller cases, awards can add up to 15 percent of amounts collected. Whistleblowers can receive an award when providing information that results in “the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.”

The IRS leaves practically no stone unturned when it comes collection of back taxes. It provides a variety of publications instructing whistleblowers how to file information. It has reports regarding the progress of the program. It also has manuals and historical information on file regarding its program.

How to defend yourself?

Especially when facing tax charges due to whistleblower information, you have the right to defend yourself. Unfortunately, the tax penalties you face for unfiled returns, fraud, and undeclared offshore assets, can be severe. This can even include criminal penalties. A knowledgeable attorney can help you understand your rights and also provide representation.

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