The IRS just released its annual report on the whistleblower program – showing over $616 million dollars brought into the Treasury thanks to the work of tax whistleblowers speaking out about tax evasion. While the awards to tax whistleblowers is not as high as last year’s record of collection of over $1.4 billion dollars and $312 million in awards – the awards for FY 2019 are still a solid $120 million (by comparison a marked improvement still over the $33.9 million in FY 2017 awards).
The trend is clear that the IRS has embraced the modern mandatory tax whistleblower program created by my old boss Chairman Charles Grassley (R-IA) – and it is honest taxpayers who have most benefited. Credit to the director of the IRS whistleblower office Lee Martin and his team for getting these awards out (as well as the support from IRS Commissioner Charles Rettig for the program).
The report makes note that the clarification in the law (26 U.S.C. 7623(c)) that whistleblowers can be paid for FBAR violations (undeclared foreign bank accounts) as well as criminal fines has been a key – with $110 million of the $616 million collected based on that clarification of the law. From my own practice representing tax whistleblowers, it is clear that the IRS continues to take a strong interest in receiving information from informed whistleblowers about offshore accounts and criminal tax activity. Interesting, the report highlights for the first time that the IRS received 282 submissions from whistleblowers overseas last year. Being a foreign national is certainly not a bar to blowing the whistle to the IRS – and receiving an award.