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Treasury Releases Their Report On The IRS Whistleblower Program

Treasury Releases Their Report On The IRS Whistleblower Program

A majority of claim closures in FYs 2015 and 2016 (83 and 85 percent, respectively) are rejected or denied before going to an operating division field group for an investigation or examination, with only a small portion (2 percent each year) resulting in an award. Most claims were rejected because the allegations were not specific enough for the IRS to take action or denied because the allegation was below the threshold to justify resources for compliance action 

About 85% of the submissions that the IRS Whistleblower Office receives are pro se filings, and the problem is that often those claims are speculative or are not developed enough for the IRS to use them as a basis for taking action. 

Of the remaining 15% on which the IRS does take action and passes the whistleblower’s information to the field agents for examination, approximately 2 out of every 15 are getting an award.

 

Figure 4: Closure Reasons for Claims Closed in FYs 2015 and 2016 (*as of February 2016) Closure Reason
Number of Claims
FY 2015
FY 2016*12
Before Field Group
8,801 (83%)
11,045 (85%)
Rejected: Ineligible Whistleblower
7
6
 
Rejected: Incomplete Submission
170
288
 
Rejected: Allegations Unclear/Nonspecific
5,633
8,145
 
Denied: Below Threshold
1,116
1,348
 
Denied: Short Statute
240
213
 
Denied: Statute Expired
470
419
 
Denied: Lack of Resources
89
37
 
Denied: Information Already Known
74
63
 
Denied: Not Selected for Field
1,002
526
 
After Field Group
345 (3%)
675 (5%)
Denied: Tax Noncompliance Not Found
287
534
 
Denied: No Collected Proceeds
58
141
 
Award Paid
204 (2%)
322 (2%)
Other
1,265 (12%)
942 (7%)
Error Creating Claim
36
***1***
 
Specific Reason Not Listed Above13
1,229
***1***
 
Total
10,615
12,984
 

 Whistleblower’s odds of getting an award can be significantly higher than 13% for a thoroughly vetted submission with good facts and good law that are clearly laid out.  The hurdle of getting the IRS to take action in the first place is certainly a high one but then you have to deliver your information in a way that helps them win their case. 

TIGTA made a total of 10 recommendations to improve the whistleblower program, nine of which IRS management agreed to.

 _________

Want a Reward of Between 15- 30% 

of Underpaid IRS Tax Liabilities for
Blowing the Whistle on a Tax Cheat?

_____

____

Contact the Tax Lawyers at
Marini & Associates, P.A.
 
for a FREE Tax Consultation
or Toll Free at 888-8TaxAid (888 882-9243).

 

 

Read more at: Tax Times blog

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