A recent annual report by the United States Internal Revenue Service (IRS) Office of the Whistleblower highlighted the tremendous awards awaiting those who pursue IRS whistleblower claims. On January 5, 2018, the IRS released its Annual Report to Congress, making clear the tremendous settlements available to whistleblowers if they come forward. However, it also highlighted reduced staffing in the Office and a significant case backlog. For those new to this program, the IRS’s whistleblower program pays large awards to those who provide timely information resulting in a successful prosecution of tax misconduct. A whistleblower may receive up to thirty percent of any sanction imposed on a corporation, and the sanctions are often in the millions of dollars.
If you are considering making an IRS whistleblower claim, you should understand the risks involved, including retaliation and loss of a career. Those risks are taken to achieve a significant reward, but the reward is not known until after an investigation and successful prosecution. Accordingly, it is vital that you retain experienced whistleblower counsel to help you through this process so that the risks are mitigated and the reward is maximized. Know that there is an extremely high risk that your whistleblowing will anger your employer and that that anger can translate into retaliation against you, often resulting in a losing your job. You should know that retaliation is prohibited however and that successful prosecution can result in your reinstatement, as well as other penalties such as double back pay, fines, and attorney fees. If you are a Mississippi whistleblower or think you may be, call Barrett Law now at (800) 707-9577.
Important Points in the IRS’s Annual Report:
- In 2017 whistleblowers received over $33.9 million in awards, and over 242 award determinations were issued.
- Since the inception of the program in 2007 whistleblower disclosures have resulted in recoveries of more than $3.6 billion, and the total amount of rewards paid is over $490 million.
- The size of the IRS Office of the Whistleblower has been reduced, from 61 full-time equivalent employees to 38 FTEs.
- There are 28,197 open whistleblower claims pending in the office.
It is important to note that the above statistics, while large, only reflect civil penalties extracted by the IRS’s whistleblower program and do not include criminal penalties that also often ensue from whistleblowers’ tips. So, while the $3.6 billion in recovery over ten years is a tremendous amount of money, it is only a fraction of the total bounty recovered. Sadly, the IRS continues to exclude criminal penalties from whistleblower; if your whistleblower claim results in a financial recovery, you will only be due a percentage of the civil penalties the IRS attains.
While the recovery amounts in the IRS’s Annual Report are tremendous, the reduction in staff and backlog of cases in the IRS’s whistleblower office are troubling. With a backlog of over 28,000 cases and a reduction of staff by half, it is hard to imagine that the IRS’s whistleblower office can continue this sort of enforcement with any gusto, a troubling thought for those risking their careers to bring fraud to light. Now more than ever, having a carefully written report to the IRS about the activities you have observed is vital. Catching the IRS’s attention will mean the difference between attaining your reward and waiting in a very long line.
What Should You Do if You are Considering a Whistleblower Claim?
Are you considering filing an IRS whistleblower case? You will require the help of an experienced whistleblower attorney to decide whether the conduct you have observed constitutes fraud. Evidence gathering, dealing with the federal government’s attorneys, important deadlines, and filing requirements make your representation both complex and time-sensitive.
Call Barrett Law now at (800) 707-9577 if you think you may be an IRS whistleblower.
Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower judgment and losing your career and livelihood. Call us today.
