TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Wednesday, December 19, 2007

IRS Provides Interim Whistleblower Guidance

In the spirit of the season, the IRS today announced interim guidance on how taxpayers can report violations of the tax law and claim a reward based on the amount of additional tax, penalties and interest that is owed:

Since the Whistleblower Office was created in December 2006, the IRS has received about 80 claims, half of those submitted in just the last two and a half months. To make a claim, an informant must file new Form 211, Application for Award for Original Information, which asks informants to provide an estimate of the tax owed, the pertinent facts in the case and an explanation of how the informant obtained the information.

The IRS’ Whistleblower Office will make the final determination about whether an award will be paid and the amount of the award for claims that it processes. Awards will be paid in proportion to the value of information furnished voluntarily with respect to proceeds collected.

Under the new procedures, the amount of award will be at least 15%, but no more than 30%, of the collected proceeds in cases in which the IRS determines that the information submitted by the informant substantially contributed to the collection of tax. The award percentage may be reduced in some circumstances, which are described in IRS guidance.

To be eligible for an award under the new procedures, the tax, penalties, interest, additions to tax, and additional amounts in dispute must exceed $2 million for any taxable year and, if the taxpayer is an individual, the individual’s gross income must exceed $200,000 for any taxable year in question.

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Comments

Violations of what "Tax Law" are you talking about?

Posted by: George Warmonger | Dec 19, 2007 7:15:38 PM

just like nazi germany!!

Posted by: Maggie | Dec 19, 2007 7:33:25 PM

Didn't they do things like this under Stalin and Hitler and Mao?
The IRS, as the collection agency of the Federal Reserve, sounds likes it's desperate to turn us into a police state. We need to elect Ron Paul more than ever!

Posted by: Dave | Dec 19, 2007 7:50:24 PM

Sounds like a Nazi-type activity to me.

Posted by: Reality | Dec 19, 2007 8:09:01 PM

The communists were right, after all: capitalism, obviously, is rotting. They only erred on the timing.

Posted by: groc22 | Dec 19, 2007 8:34:29 PM

What better way to take the spotlight off the worst tax scam artists, being the IRS, than to turn the victims on themselves.

We can only hope Ron Paul is elected as the next President so as to be rid of unconstitutional, illegal, immoral and bullying government organiations such as the IRS!!!

Posted by: Franklin | Dec 19, 2007 8:36:26 PM

Wow! Cool! Informants! Just like the Nazis used to have!

Posted by: Mr. Just-A-Guy | Dec 19, 2007 9:13:49 PM

surely you must have heard of Tom Cryer and seen his youtube video revealing that there is no reason for wage earners in USA to pay income tax. Wages are not income. You will find links to this information and other items such as a speech by a juror at a trial where IRS lost the case and could not show any law requiring the man on trial to pay tax.

Posted by: pat | Dec 19, 2007 11:38:07 PM

Please explain how taxes are payable on income not defined?
Please also explain how to pay those taxes without committing fraud?
Please also know that any "taxpayer" who winds up being "Whistleblown" and is prosecuted, can record a series of affadavits/letter rogatorys' combo, and actually place the IRS agent in the can for mail fraud, under Title 18~1001, 1002 and Title 42~1986. It's quite simple really and it's been happening all over.
You should tell people this to save their collective asses

Posted by: Michael Miller | Dec 19, 2007 11:45:04 PM

sounds a lot like a totalitarian state to me. USA=4th Reich

Posted by: Tom Terry | Dec 20, 2007 12:04:35 AM

Yep. Rat on your neighbours to your joke of a corrupt Government. Get some cash for yourself. is this what America is devolving into? A nation of tattle tales for money? pathetic.

Posted by: Paulbe | Dec 20, 2007 4:39:24 AM

I hope Ron Paul is elected so BS like this is stopped.

Posted by: woody | Dec 20, 2007 6:14:00 AM

Anyone making 200k a year and owing over 2mill in taxes ain't no neighbor of mine.
That means anybody living in Malibu, those Hedge Funder a-holes, and Donald Trump are probably on the list.
So mount up boys- hunting season has begun. *chik chak*

Posted by: Predator | Dec 20, 2007 6:39:40 AM

Surely someone can fill out one of these forms on Dick Cheney or Rumsfeld?

Posted by: KenF | Dec 20, 2007 7:57:33 AM

The IRS and the FED- two foreign powers that add nothing to the quality of life of american citizens and do everything they can to destroy it.

Posted by: thetruth | Dec 20, 2007 8:51:21 AM

I thought we already had a government sponsored and instigated "war on terror?!" Isn't this like instigating financial war between Americans?! Can you just imagine what the results of this are going to be by turning America's already "culture of envy" into an acidic cesspool of open financial warfare and terrorism?!

Posted by: Economically Raped | Dec 20, 2007 5:17:55 PM