June 4, 2020

June 04, 2020

Subscribe to Latest Legal News and Analysis

June 03, 2020

Subscribe to Latest Legal News and Analysis

June 02, 2020

Subscribe to Latest Legal News and Analysis

June 01, 2020

Subscribe to Latest Legal News and Analysis

IRS Whistleblower Office Annual Report Confirms Success of Program

Yesterday, the U.S. Internal Revenue Service (“IRS”) Office of the Whistleblower released its Annual Report to Congress on the IRS Whistleblower Program for the fiscal year 2019. The IRS Whistleblower Program recovered over $616 million of taxpayer money and awarded over $120 million to whistleblowers. This amount includes $110 million of proceeds collected as a result of IRC § 7623(c), collected for criminal fines, civil forfeitures, and violations of reporting requirements. One hundred eighty-one (181) tax whistleblowers received awards in 2019.

A screenshot of a cell phone</p>
<p>Description automatically generated

Source: IRS Whistleblower Program FY 2019 Annual Report to Congress

The report also noted statutory changes that resulted in operational changes for the IRS Whistleblower Office. These came due to the passage of Section 41108 of the Bipartisan Budget Act of 2018 (BBA 2018), effective July 1, 2019, and the Taxpayer First Act of 2019 (TFA 2019). The TFA 2019 added, to IRC § 7623, several important provisions that would help improve taxpayer service, ensure the continual enforcement of the tax laws fairly and impartially, and ultimately support the continued success of our nation.

According to the report:

The report demonstrates the effectiveness of qui tam laws and the IRS Whistleblower Program. In three short years, the taxpayers have recovered over $2.24 billion from tax fraudsters based on information provided by whistleblowers.

A screenshot of a cell phone</p>
<p>Description automatically generated

Source: IRS Whistleblower Program FY 2019 Annual Report to Congress

The IRS Whistleblower Program, as discussed in the report, continues to build on the significant contributions of whistleblowers like Bradley Birkenfeld, the first major international tax fraud whistleblower. Mr. Birkenfeld’s disclosures resulted in $780 million fine against UBS and triggered a successful law enforcement campaign that effectively ended illegal offshore banking for U.S. taxpayers in Switzerland. 

Copyright Kohn, Kohn & Colapinto, LLP 2020. All Rights Reserved.

TRENDING LEGAL ANALYSIS


About this Author

Mary Jane Wilmoth KKC  managing partner  whistleblower protection, environmental and nuclear industry whistleblowers, Qui Tam/False Claims whistleblowers.
Managing Partner

Mary Jane Wilmoth is the firm’s managing partner, and works closely with the partners at KKC, specializing in environmental and nuclear whistleblower protection, Qui Tam/False Claims litigation, and labor and employment law. She joined the firm in 1992, and works on cases and hearings that involve complex nuclear and environmental regulations. In her efforts to assure such safeguards are upheld in the American workplace, she has helped to strengthen whistleblower rights in licensing and enforcement proceedings with the Nuclear Regulatory Commission. She has also defended whistleblowers at...

202-342-6980