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IRS Whistleblower Attorneys Protecting Our Client’s Interests
The Internal Revenue Service (IRS) instituted the IRS Whistleblower Program to help encourage parties to report tax underpayments. In the United States, most people and businesses that earn revenue must pay taxes. While there are numerous lawful ways to reduce tax liability, people and companies do employ fraudulent tactics to avoid paying taxes. Violations of the Internal Revenue Code (IRC) harm the federal government and infringe on the rights of all taxpayers.
Key Provisions of the IRS Whistleblower Program:
IRS whistleblowers provide the IRS with information regarding another party’s underpayment of taxes or other violations of the IRC. The information a whistleblower provides to the IRS must be “original” to qualify for an award. In other words, there can be no award if the IRS was already in possession of the whistleblower’s information, regardless of whether it leads to a sanction against the party for tax law violations. Under the IRC, IRS whistleblowers may recover monetary awards if their information leads to the recovery of funds from someone who violated the law.
- Scope of Reportable Activities: Notably, an IRS whistleblower may report any underpayment of taxes, regardless of whether or not the failure to pay the amount owed was intentional. Acts that often trigger IRS whistleblower reports include hiding assets, keeping false records or multiple sets of books, and underreporting earnings or overstating deductions. Stock fraud, improper diversion of assets to offshore accounts, and abuse of trusts can constitute grounds for filing an IRS whistleblower claim as well. Pugsley Wood attorneys help individuals reporting violations of the IRC to prepare and file the appropriate forms and provide certain information to the IRS.
- Eligibility for IRS Whistleblower Award: To qualify for an IRS whistleblower award, typically, you must provide information regarding tax fraud or underpayments that exceed $2 million, including penalties and interest. If the report pertains to an individual, their yearly income must exceed $200,000 for you to obtain an award. Certain parties are ineligible to recover IRS whistleblower awards, including those who are required by federal law to report such violations and parties who obtained the information they reported due to a contract with the federal government.
- Monetary Awards: Under the IRS Whistleblower Program, whistleblowers may be awarded a percentage of the IRS’s recovery from the taxpayer. Typically, the IRS pays eligible whistleblowers an award between 15% and 30% of the amount collected based on the information they submitted. The amount decreases if the information in question was available from a public source, or if the whistleblower took part in the actions that led to the failure to comply with the IRC.
- Anonymous Reporting: Whistleblowers have the option to remain anonymous when reporting IRC violations, a crucial provision that safeguards them from potential retaliation. This anonymity allows individuals to come forward without fear of reprisal, but to report anonymously IRS whistleblowers must have legal representation.
If you have information regarding another party’s failure to pay taxes, you should contact an attorney to discuss your options. Collectively, the trusted IRS whistleblower lawyers of Pugsley Wood attorneys have decades of experience representing whistleblowers in a variety of claims, and if you engage our services, we will work tirelessly on your behalf. If you are considering blowing the whistle on a company that is committing IRC violations, our experienced attorneys can help you understand your rights, assess the strength of your case, and guide you through the reporting process.
Contact us today to schedule a confidential consultation at no cost to you.