Tax Whistleblower Awards

Whistleblower Awards

Doyle Dennis LLP represents federal tax whistleblowers who have reported violations of federal tax laws, including tax fraud. The Internal Revenue Service’s whistleblower program provided rewards for whistleblowers who provide reports of tax violations and fraud.  Under this program, whistleblowers can be paid from 15 to 30% of government recoveries that result from the successful reports.

What type of information is necessary to make a whistleblower claim?

The IRS whistleblower program allow individuals to report corporate or individual violations of Federal tax law or fraud. Some examples of tax fraud may be: deliberately underreporting or omitting income, overstating the amount of deductions keeping two sets of books, making false entries in books and records, claiming personal expenses as business expenses, claiming false deductions, hiding or transferring assets or income. In order to recover a whistleblower award, the reported tax fraud must exceed $2 million, including interest and fees.

How do I make a report?

          To make a claim, a whistleblower claims must submit claim under penalty of perjury.  While the IRS does not require a specific format, the IRS has stated that the report should include:

  • A description of the alleged tax noncompliance, including a written narrative explaining the issue(s).
  • Information to support the narrative, such as copies of books and records, ledger sheets, receipts, bank records, contracts, emails, and the location of assets.
  • A description of documents or supporting evidence not in the whistleblower’s possession or control, and their location.
  • An explanation of how and when the whistleblower became aware of the information that forms the basis of the claim.
  • A complete description of the whistleblower’s present or former relationship (if any) to the subject of the claim (for example, family member, acquaintance, client, employee, accountant, lawyer, bookkeeper, customer).
  • The whistleblower’s original signature on the declaration under penalty of perjury (a representative cannot sign Form 211 for the whistleblower) and the date of signature.

In addition, a whistleblower must submit Form 211 PDF, application for Award for Original Information to the IRS.

Should I hire an attorney?

          While a whistleblower can file a tip without hiring an attorney, there are some important advantages in hiring counsel.  If an attorney submits a claim with the IRS, the whistleblower may be able to stay anonymous.  In addition, experienced attorneys will have greater knowledge of the legal requirements for submitting a claim and thus increase the likelihood that the claim is accepted.  

What damages can I obtain?

          A whistleblower who has successfully provided information to the IRS regarding tax fraud, may be entitled to 15% to 30% of the amount collected by the IRS.

When are awards paid?

          The IRS awards are paid after the IRS has collected the proceeds and determined the information was attributable to the whistleblower. The IRS can only issue awards once a final determination has been made, which occurs have the taxpayer has exhausted all appeal rights and the taxpayer no longer can file a claim for refund or otherwise seek to recover the proceeds from the government.