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IRS Tax Whistleblower Program

IRS Tax Whistleblower Program

To combat tax fraud and evasion, the U.S. Government created the Internal Revenue Service (IRS) whistleblower program. This program provides rewards and protections to those who expose unlawful activities. The IRS estimates that every year $450 billion dollars is underpaid in taxesby companies and individuals, which unfairly shifts the burden of federal funding onto ordinary citizens. In 2006 Congress passed the Tax Relief and Healthcare Act that was modeled after the successful False Claims Act. To date, the IRS Whistleblower Office has paid over $315 million in awards to the brave relators who helped the authorities recover illegally hidden funds.

Protection and Anonymity

People who want to blow the whistle can submit their information by hiring an attorney to represent them. Together, they will work with their attorney to organize a claim by completing IRS Form 211, attaching any relevant documents in their possession, and then sending the form to the IRS Whistleblower Office. Over the course of the investigation, the whistleblower’s identity will remain protected since the authorities will not reveal any identifying information such as their name, age, gender, or job position, except under very limited circumstances.

IRS Whistleblower Reward Provision

If the taxes, interests, and penalties exceed $2 million, the whistleblower is entitled to a payment of 15-30% of the amount collected by the IRS. The information provided by whistleblowers must be confidential, meaning that it is not commonly accessible or available in public records. Another factor that increases the amount of reward provided is how long it took the plaintiff to approach the government about the alleged illegal scheme. Also, more detailed submissions to the IRS that contain thorough legal and technical analysis of taxpayer records may help to secure a larger award.

The invaluable help provided by whistleblowers

To date, the IRS Whistleblower Office has awarded over $1 billion to whistleblowers, over $86 million of which have been paid in fiscal year 2020 alone. Every year the government recovers hundreds of billions in uncollected corporate taxes thanks to the help of anonymous tips. Usually, most of the information about the companies involved cannot be disclosed to protect the relator’s identity. In September 2012, however, Bradley Birkenfeld has been awarded $104 million for his role in exposing how UBS helped its clients conceal money in Swiss tax shelters.

How to report fraud under the IRS Whistleblower Program

Any individual who discovers tax fraud may file a case with the IRS. Whistleblowers do not have to be citizens and do not have to be employees of the company they are reporting. Cases must be submitted as early as possible due to the statute of limitations, which can be as short as three years. If you or someone you know possess valuable information on a company or individual cheating on their taxes, you should contact a whistleblower attorney immediately.

Submissions must be accompanied by evidence including financial data, a description of the company’s assets, copies of books and records, transaction documents, the location of bank accounts, or even the personal addresses and employment history of the persons involved in the alleged scheme.

Take the First Step

If you are unsure whether you have a whistleblower case, you should still contact an attorney as soon as possible because Statute of Limitations laws may prevent you from filing a case if too much time has passed. Your first consultation is free and totally confidential. Call us now at , or file a form by clicking the button below.

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The information submitted will be submitted to the law firm of Piacentile, Stefanowski & Associates LLP d/b/a Whistleblowers International. This communication does not create an attorney-client relationship and is submitted only for the purpose of evaluating your claim to see if this is something we are able to help you with. By contacting us, you certify that you are a potential client making a bona fide inquiry about obtaining legal services to address a potential whistleblowing legal claim. Past results do not guarantee future outcomes. While this submission does not create an attorney-client relationship, all information submitted will be kept strictly confidential per legal ethics rules since this information is submitted in contemplation of a potential attorney-client relationship. No attorney-client relationship is formed until it is determined after evaluation with you that this is something we can take on and a retainer agreement is signed by you and the law firm of Piacentile, Stefanowski & Malherbe LLP d/b/a Whistleblowers International. Please also understand that by submitting your information, there is no guarantee that we will contact you in response, as at any given time, there are only a limited number of claims we are able to take on and pursue. If we do not contact you within 3-business days of your submission, please reach out to another whistleblower law firm if you are interested in pursuing your matter.

Our Areas of Practice

Healthcare Fraud 

Securities / Derivatives Fraud

Fraud Against the Government

Tax Fraud

Cryptocurrencies Fraud

Defense Contractor Fraud

Money Laundering

Foreign Corrupt Practices Act

DR. JOE’S CASES HAVE BEEN FEATURED IN:

PROTECTIONS FOR WHISTLEBLOWERS

The idea of becoming a whistleblower can be scary, especially if you’re an insider who works for the company you want to report. Fear of retaliation is common in potential whistleblowers. Luckily, the CFTC has ways to protect good Samaritans who want to do the right thing. 

ANONYMITY 

The first line of protection is anonymity. If a whistleblower is represented by an attorney when submitting a TCR, their identity can remain a secret. If the whistleblower becomes eligible for an award, they must reveal their identity to the Commission. Even then, the CFTC does not disclose the identity of the whistleblower or what amount was awarded to them. However, this protection is not absolute.

EXCEPTIONS TO ANONYMITY 

There are a few circumstances under which the CFTC might release the whistleblower’s identity to the defendant or third parties. It might happen if the whistleblower consents to have their identity revealed. It’s also possible that disclosure might be required in connection to a public proceeding with a different government entity. The Commission only discloses this information in situations where it is necessary to accomplish the purposes of the Commodities Exchange Act.

THE ANTI-RETALIATION CLAUSE 

Even if the whistleblower’s identity is revealed, there is still a second line of protection: the anti-retaliation clause. Employers are prohibited from firing, demoting, harassing, suspending, or discriminating against a whistleblower who has reported a violation. Employers are not even allowed to restrict the communication a potential whistleblower has with the CFTC, including enforcing a confidentiality agreement or an arbitration clause in the employment contract. 

The Dodd-Frank Act prohibits retaliation by employers against whistleblowers. Employers may not take any action to impede would-be whistleblowers from communicating directly with the Commission’s staff about possible violations of the Commodity Exchange Act (CEA), including by enforcing, or threatening to enforce, a confidentiality agreement or predispute arbitration agreement with respect to such communications. Nor may employers discharge, demote, suspend, threaten, harass, directly or indirectly, or in any other manner discriminate against a whistleblower in the terms and conditions of employment for coming forward with information about possible violations of the CEA. The CFTC and the whistleblower may separately bring actions against an employer for retaliation against the whistleblower.

If you are a whistleblower and believe that your employer has wrongfully retaliated against you, you may bring a private action in federal court against your employer within two years of the employer’s retaliatory act.

If you prevail, you may be entitled to reinstatement, back pay, litigation costs, expert witness fees, and attorney’s fees. The CFTC also has authority under the CEA to bring an enforcement action against your employer for any retaliatory acts, which include any steps taken to impede a whistleblower from communicating directly with the Commission’s staff about possible violations of the CEA.

CFTC WHISTLEBLOWER IDENTITY PROTECTION

The CFTC is committed to protecting whistleblowers’ identities. As a general rule, the CFTC treats information learned during the course of an investigation, including the identity of sources, as non-public and confidential. While there are limits on the Commission’s ability to shield your identity, it will not disclose information that could reasonably identify a whistleblower without consent of the whistleblower.

Whistleblowers who have been victims of retaliation have up to two years to bring a private action against their employers and may be entitled to reinstatement, back pay, and litigation costs. This can be done in federal court or through the CFTC itself.

If you believe someone you know or work for has violated the Commodity Exchange Act, or if you have non-public information about fraud involving derivatives or violations of the CFTC’s regulations, contact us at Whistleblowers International for a case evaluation or call (800) 275-0251.

CFTC WHISTLEBLOWER REWARDS

The CFTC pays monetary awards to eligible whistleblowers who voluntarily provide the CFTC with original information about violations of the Commodity Exchange Act (CEA) that leads the CFTC to bring a successful enforcement action resulting in monetary sanctions exceeding $1,000,000.

The total amount of an award for an eligible enforcement action is between 10% and 30% of the amount of monetary sanctions collected in the CFTC’s enforcement action or a Related Action. If multiple whistleblowers are granted awards in an action, the total award amount is still limited to between 10% and 30% of the amount of the monetary sanctions collected.

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The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of the Treasury dedicated to combating financial crimes, such as money laundering, terrorist financing, and other illicit activities that exploit the financial system. Established in...

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