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IRS awards $37.75M to whistleblowers who expose tax fraud

Nov 27 2023

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Keller Grover / News / Whistleblower News / IRS awards $37.75M to whistleblowers who expose tax fraud

The IRS Whistleblower Office paid $37.75 million in awards to 132 whistleblowers in fiscal 2022, according to its latest annual report. 

“The IRS uses increasingly sophisticated data analytics and other methods to detect non-compliance with tax laws, but we can’t find it all by ourselves,” office director John Hinman said in the report. “We need help from whistleblowers — people with firsthand knowledge of noncompliance who are willing to share what they know with us so we can investigate it when warranted.”

The office, which aims to support fair and effective enforcement of U.S. tax laws, collected $172.7 million in proceeds based on the whistleblower tips.

Its report, which was released mid-year but covers the fiscal year that ended Sept. 30, 2022, noted that the amount awarded increased from $36.1 million the prior fiscal year. The number of tips was similar. 

Lately, there’s been a focus on improving the IRS Whistleblower Program, particularly handling claims more effectively and rewarding whistleblowers more quickly, as well as improving communication with whistleblowers about their claims, Hinman said.

Like many whistleblower programs, the IRS program strives to protect whistleblower confidentiality, so it discloses information in aggregate to keep identities from becoming known. 

Also, whistleblowers who provide specific, timely and credible information about tax underpayments or violations of IRS laws may qualify for an award of 15 percent to 30 percent of the proceeds collected based on that information.

We recently wrote about the government’s need for whistleblower help to uncover “pervasive fraud” in crypto and other U.S. derivatives; the agency overseeing that market, the Commodity Futures Trading Commission, reported a record number of annual whistleblower tips. That program awarded $16 million to whistleblowers during the past fiscal year.

While U.S. whistleblower law can be a complex patchwork relating to various specific situations, the government —and the public — highly value whistleblower tips. Such tips help protect many from fraud and other harmful activity. If you see or suspect wrongdoing, the experienced whistleblower lawyers at Keller Grover can advise you about your case and prudent next steps. Contact Keller Grover for a free and confidential consultation.

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