The IRS Whistleblower Reward Program
Linda Stengle, the President of Stengle Law, has enjoyed outstanding success in obtaining IRS whistleblower awards for her clients and is well versed in the nuances of the IRS whistleblower program. Linda Stengle has worked with the IRS Whistleblower Office (WO) from its inception; she represented the first whistleblower to be paid by the IRS WO. That client received a partial award payment of $5.5 million. Stengle is still one of only a handful of attorneys who has successfully represented IRS whistleblowers in US Tax Court.
Several programs have been in use over the years, however, the whistleblower program requires that the person or entity committing the offense have a gross annual income over $200,000. Additionally, the amount in question must total over $2,000,000 (calculating for the tax fee, penalties on the tax fee and interest on the tax fee). The IRS program is comprised of two parts – a mandatory reward payment program and a discretionary award payment program. To qualify for the mandatory whistleblower reward program, the claim must meet certain criteria.
Many people do not realize that the IRS program does not require actual fraud or tax evasion; it will pay rewards for significant tax underpayments. If you have information about an individual (or entity) who has made an underpayment (or non-payment) of federal taxes, you might qualify for an award under the IRS Whistleblower Program.
State Tax Whistleblower Claims
New York is the only state in the country that explicitly allows whistleblowers to obtain a reward for reporting violations of New York State tax laws. A few other states sometimes enter into contracts with whistleblowers who have unusual, significant and complex information about state tax violations, but those types of contracts are rare and difficult to obtain.
New York’s False Claims Act allows whistleblowers to bring a qui tam lawsuit against an individual or business that makes more than $1 million net income and defrauds New York for more than $350,000 by making a false or fraudulent claim, record or statement under the state’s tax laws.
Please call us at Stengle Law for a free consultation about your tax whistleblower case.