IRS Tax Fraud Whistleblower Rewards and Protections

Whistleblower tips to the IRS have enabled the IRS to recover more than $6 billion and the IRS has paid approximately $1 billion in awards to whistleblowers. With the current annual tax gap at approximately $400 billion, it is critical to ensure that whistleblowers are protected against retaliation when they report tax fraud or other violations of IRS rules. Fortunately, the Taxpayer First Act provides a potent remedy against retaliation for whistleblowers reporting tax fraud or a violation of an IRS regulation to the IRS or to their employer. The TFA whistleblower protection law prohibits a wide range of retaliatory acts, including: Discharging, Demoting, Suspending, Threatening, Harassing, or in any manner discriminating against a whistleblower in the terms and conditions of employment. A prevailing TFA whistleblower is entitled to make-whole relief, which includes reinstatement, double back pay with interest, uncapped damages for emotional distress and reputational harm, and attorney fees. Call us to find out if you may qualify for an IRS whistleblower award or for damages under the TFA whistleblower protection law.