The Tax Relief and Health Care Act of 2006 created the IRS Whistleblower Program. This program requires the IRS to pay whistleblowers when they obtain an award if the amount in controversy is more than $2 million.
This was the first new Whistleblower Reward Law since the False Claims Act had been brought back to life under the 1986 Amendments to the False Claims Act. The success of this legislation help lead to the enactment of the SEC and CFTC Whistleblower programs under the Dodd-Frank Act.
Of course, the overwhelming success of the False Claims Act and the real results from that law has led to the idea that whistleblowers should be rewarded. A new law was needed, however, because the False Claims Act does not allow anyone to file a claim for tax fraud. The IRS Whistleblower program does.
If you have information about tax fraud and wish to participate in the IRS whistleblower program, reach out to a qualified DC whistleblower attorney. A lawyer with experience handling claims like yours knows how to put together a successful case and present it to the IRS.
Qualifications for the IRS Whistleblower Reward Program
In order to qualify for the IRS Whistleblower Reward Program, an individual must submit “original information” to the government. There is the potential of a reduced award for information which is essential, based on public material and does not qualify as original information. For the types of claims that entitle the whistleblower to the 15%-30% award envisioned by this program, the IRS wants original information.
The IRS has broad discretion as to which claims it will pursue. The IRS program does not follow the procedure of the False Claims Act in allowing an individual the right to file a case in Court. On the other hand, the IRS, obviously has the capacity to pursue meritorious cases and the ability to investigate legitimate allegations of Tax Fraud.
IRS Form 211
IRS Form 211 is the form a person must file in order to become eligible for an award under the IRS whistleblower program. The Whistleblower may supplement that form with supporting material and additional information, which the whistleblower’s DC attorney most likely will help prepare. Most cases involve some amount of documentation and or additional explanation in order to get into the details of the fraud. There may be quite a few notations on the form indicating to the IRS to ‘see attached’ when more explanation is required.
The attorney will also have to file a form indicating that they are acting as the whistleblower’s attorney. Form 211 itself has to be signed by the whistleblower themselves in ink and not electronically. IRS Form 211 is signed under the penalty of perjury, which means the filer claims to the best of their knowledge that everything that they are submitting is true.
It is possible and even encouraged for a whistleblower to include a written narrative to address certain parts of their allegations. Of course, the whistleblower should be as forthcoming as they can possibly be to support the claim. Hopefully, the information being provided to the IRS is not only the basis to find the defendant liable, but also a basis on which the IRS can obtain more information to substantiate the charges.
What Relationships Need to be Reported?
Form 211 requires a statement of whether the whistleblower is still working for the defendant or if they ever did work for the defendant. If they have filed some other legal proceedings against the taxpayer. The Form also asks for details about other areas which may cause procedural issues if the whistleblower has other actions against the defendants. In order to carefully fill out the form and file a case, it is best to discuss the matter with counsel.
Reach Out to a Dedicated Attorney to Discuss the IRS Whistleblower Program
If you believe you have information the IRS would be interested in, you should first speak with an experienced whistleblower lawyer in Washington, DC. An attorney could advise you about your legal options and help you put together a case under the IRS Whistleblower Program. Call today to schedule a free consultation.