IRS Press Release
Interesting IRS Press release today on its qui tam provisions. Caution is always in order in filing one of these. Make sure your house is in order first. You will be the first audited and then your target gets audited.
Procedure Unveiled for Reporting Violations of the Tax Law,
Making Reward Claims
IR-2007-201, Dec. 19, 2007
WASHINGTON— The Internal Revenue Service today outlined ways informants can
report violations of the tax law and possibly claim a reward based on the amount of
additional tax, penalties and interest that is owed.
“Since Congress enacted new procedures increasing award amounts last year,
informants have come forward with information on alleged tax noncompliance
amounting to tens of millions of dollars, and in some cases hundreds of millions of
dollars,” said Stephen Whitlock, Director of the Whistleblower Office.
Since the Whistleblower Office was created in December 2006, the IRS has received
about 80 claims, half of those submitted in just the last two and a half months. To make
a claim, an informant must file new Form 211, Application for Award for Original
Information, which asks informants to provide an estimate of the tax owed, the pertinent
facts in the case and an explanation of how the informant obtained the information.
The IRS’ Whistleblower Office will make the final determination about whether an award
will be paid and the amount of the award for claims that it processes. Awards will be
paid in proportion to the value of information furnished voluntarily with respect to
Under the new procedures, the amount of award will be at least 15%, but no more than
30%, of the collected proceeds in cases in which the IRS determines that the
information submitted by the informant substantially contributed to the collection of tax.
The award percentage may be reduced in some circumstances, which are described in
To be eligible for an award under the new procedures, the tax, penalties, interest,
additions to tax, and additional amounts in dispute must exceed $2 million for any
taxable year and, if the taxpayer is an individual, the individual’s gross income must
exceed $200,000 for any taxable year in question.
All awards will be subject to normal tax reporting and withholding requirements.