The Internal Revenue Service (IRS) is a U.S government agency that is responsible for the collection of taxes and enforcement of tax laws.
Whistleblowers are people who expose those who fail to pay the tax they owe.
The IRS whistleblower office awards the whistleblower up to 30 percent of the additional tax if the information provided by the whistleblower was useful.
Taxpayer First Act Law
The Taxpayer First Act Law was signed by the president on the 1st of July, 2019 which includes important provisions to help improve taxpayer services and also ensure the enforcement of tax laws are fair and impartial. The law also includes changes related to the notification process to whistleblowers and made available protection for them against retaliation.
Whistleblower claim
The IRS needs specific and solid information that will result in the collection of taxes, interest, or penalties and the whistleblower gets an award for this information.
The law awards as follows:
The IRS awards 15 to 30 percent of the amount retrieved to the whistleblower if the interest or additional taxes in dispute exceeds $2 million. For an individual case, his/her annual gross income must be above $200,000.
The IRS awards a maximum of 15 percent of the amount retrieved to the whistleblower if the additional tax or interest in dispute do not meet the threshold of $2 million or individual case with an annual gross income of $200,000 above.
Note: the whistleblower could appeal to the Tax Court if he or she disagrees with the outcome of the claim.
Wrap Up
To get an award as a whistleblower, you need to provide credible information and not guesses and do remember that the IRS is not a platform for resolving a personal dispute or business problems.
Greetings Tax Payers of America! As of January 10th, 2020, federal tax returns may be filed online for FREE!
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