Is the Tax Whistleblower Program simply is a Cost of Doing Business?

ST. LOUIS, MO, March 09, 2011

The government, and more particularly the Internal Revenue Service, has begun to run itself much like private enterprise. The IRS has a role....enforcing the Internal Revenue Code. Therefore, the IRS is in a position of conflict. It must encourage compliance at all costs while at the same time minimizing the cost of tax administration.

The IRS has recently enacted the Uncertain Tax Position (UTP) program requiring large corporations to disclose their tax positions for which they might feel they are not entitled to the tax benefits claimed on their tax returns. More recently, Seven Miller, the Deputy Commissioner for Services and Enforcement issued a memo to IRS personnel guidance to apply penalties to Voluntary Disclosure Requests with Offshore Bank Accounts. Both of these programs encourage taxpayers to voluntarily disclose to the IRS their tax problems. However, should the taxpayers choose not to disclose their tax problems, the IRS Tax Whistleblower Program is up and running ready to pay whistleblowers 15% to 30% of the amounts ultimately collected by the IRS based upon information provided by the tax whistleblowers.

Many tax whistleblowers are coming forward due to the above two programs in order to reap the reward. As large corporations must file a Schedule UTP to disclose uncertain tax positions many of the taxpayer's personnel and the outside accountants recognize this as an opportunity to claim a reward since the information will be disclose to the IRS anyway. They recognize they must provide "specific and credible" information that would substantially lead to the determination of tax. By doing so before the "voluntary" disclosure puts them in line for the reward. A good great tax whistleblower attorney knows how to protect their identity in these types of matters in which confidentiality agreements or rules of ethics as to protecting client confidentiality might kick in.

Bottom line is that the government knows, "whistleblower programs don't cost ...they pay."

Former IRS attorneys at the Tax Whistleblower Law Firm working full time on tax whistleblower cases. With over three years of experience and 100% of acceptance rate of cases into the program, we use our experience to prepare a proper case for the IRS in order to get the case accepted and to maximize the reward. We will guarantee our client's confidentiality and appeal the case, if necessary, to the U.S. Tax Court.
For further information, please contact us at 877-404-1040 or contact one our attorneys directly at 314-795-7800.