IRS Whistleblower

We protect and represent IRS whistleblowers from adversary parties as the tax case is handled through the IRS whistleblower program. Because the whistleblower program is highly confidential and potentially risky to the whistleblower and the target taxpayer, you will need a tax lawyer that fully understands and has the requisite experience to navigate strategic steps, tax and criminal tax law considerations in the context of the IRS Whistleblower Program so that your information and efforts are properly awarded.

1. Understanding the IRS Whistleblower Program:

• Legal Framework: The IRS Whistleblower Program, established under the Tax Relief and Health Care Act of 2006, encourages individuals to report tax fraud by offering awards. If the information leads to collections exceeding $2 million, whistleblowers can receive 15-30% of the collected proceeds.

2. Initial Consultation:

• Confidentiality: Only a tax lawyer that understand the IRS Whistleblower Program can fully ensure all communications and actions you will take are confidential. Regardless, each IRS Whistleblower must also be fully informed and assess the potential risks and protections against retaliation.
• Internal Tax Audit: Before initiating any IRS Whistleblower report, timely collection of all relevant tax documents, evidence, and details about the alleged tax fraud must gathered. In many cases, shadow internal tax audit is performed to properly assess the validity and viability of the IRS Whistleblower report.

3. Filing the Whistleblower Claim:

• Form 211: Use IRS Form 211, “Application for Award for Original Information.” This form requires detailed information about the alleged tax violation, supporting documentation, and how the whistleblower obtained this information.
• Taint Review: Be aware that the IRS conducts a taint review to check for any legal or ethical issues with the information provided.

4. Tax Attorney Representation:

• IRS Whistleblower Protection: Strategy that not only presents the information effectively to the IRS but also protects the IRS whistleblower from potential retaliation is paramount including defending the IRS Whistleblower in any legal action if retaliation occurs.
• Prosecution Immunity: If appropriate, immunity from government prosecution need to be secured to ensure the whistleblower’s identity remains protected and that the whistleblower does become the target of a separate criminal tax investigation by the IRS.

6. Negotiation and Litigation:

• Award Negotiation: If the IRS collects taxes based on the information, negotiate the award amount. Factors like the uniqueness of the information, the amount collected, and the effort of the whistleblower play into this.
• Appeals: If the award is deemed insufficient or denied, prepare to appeal. The IRS Whistleblower Office’s decisions can be appealed to the Tax Court.