Are you considering becoming a whistleblower and exposing tax evasion? Currently, the protections for whistleblowers under the IRS Whistleblower Law are not nearly as robust as those under the traditional whistleblower laws, such as the False Claims Act or Sarbanes-Oxley. A new law, the IRS Whistleblower Improvement Act of 2017, has been proposed by Senators Chuck Grassley of Iowa and Ron Wyden of Oregon to improve protection for whistleblowers against retaliation.
According to Senator Wyden’s press release, the goal of the new legislation is to improve communication between the IRS and whistleblowers and to protect whistleblowers from retaliation:
The IRS Whistleblower Improvements Act of 2017 is based on the Grassley-Wyden amendment included in the Taxpayer Protection Act of 2016. The Taxpayer Protection Act, along with the Grassley-Wyden amendment, passed the Finance Committee in April 2016 but was never considered by the full Senate.
The measure would: (1) increase communication between the IRS and whistleblowers, while protecting taxpayer privacy, and (2) provide legal protections to whistleblowers from employers retaliating against them for disclosing tax abuses.
To increase communication, the bill specifically would allow the IRS to exchange information with whistleblowers where doing so would be helpful to an investigation. It would further require the IRS to provide status updates to whistleblowers at significant points in the review process and allow for further updates at the discretion of the IRS. It does this while ensuring that the confidentiality of this information is maintained. Whistleblowers have expressed concern and frustration in their inability to receive information from the IRS on the status of their cases, which may take years to resolve. Since these individuals often put their livelihoods on the line to come forward, poor communication adds to their anxiety and is a disincentive to others with knowledge of high dollar tax fraud.
To protect whistleblowers from employer retaliation, the bill extends anti-retaliation provisions to IRS whistleblowers that are currently afforded to whistleblowers under other whistleblower laws, such as the False Claims Act and Sarbanes-Oxley. Tax whistleblowers may be easily identified within their firms as having specific knowledge of tax fraud.
If passed, this law would likely make life easier for tax whistleblowers. Specifically, it would provide whistleblowers and independent right to sue for retaliation. While retaliation is currently prohibited, the whistleblower would have to rely on the IRS to prosecute it. That is not much of a protection, so providing the whistleblower an independent right to sue is a meaningful improvement and protection.
Second, it would allow some sharing of information between the IRS and whistleblowers. This is a complex situation because legal prohibitions generally keep the IRS from sharing individuals’ tax information with third party whistleblowers. But with no sharing of information, the whistleblower has no way of knowing how the case is progressing, if it is progressing at all. That can lead to a whistleblower being blindsided by retaliation or fearing for their job when, in fact, no investigation is being conducted that would jeopardize their career. This new legislation tries to find a middle ground, where whistleblowers can be given case-status information without violating any other citizen’s privacy.
What Should You Do if You Want to Become a Whistleblower to the IRS?
If you are interested in becoming a whistleblower to the IRS, you need to have experienced counsel to help you through the process. As a whistleblower, you are entitled to a share of whatever funds are recovered as a result of an investigation into the fraud you reported. That is a powerful incentive, as is doing the right thing. But know that this a long process and that you can experience retaliation if you are discovered.
Call Barrett Law now, an experienced Mississippi whistleblower firm, to represent you if you want to become a whistleblower
Barrett Law has the experience to protect your rights, your livelihood, and your income. Contact us now at (800) 707-9577 to get experienced counsel on your side.