IRS Whistle Blowers Are On The Loose!

As if dealing with the IRS wasn’t enough of a headache, here’s something else that taxpayers and business owners must now consider: the IRS is willing to pay “whistleblowers” who report improper tax filings. That’s right—it could be your neighbor, a family member, or even an employee that contacts the IRS to report suspected fraud. If the IRS finds that they were correct, they’ll receive a reward. Forbes reports:

You’ve probably read about IRS whistleblowers cashing in for reporting suspected tax fraud. It may seem to be a new development, but IRS whistleblowing incentives started in 1867! Still, big changes in 2006 raised the stakes materially, adding new Section 7623(b).

Under it, awards to whistleblowers are no longer discretionary. Now, the whistleblower “shall” receive 15 to 30 percent of the collected proceeds. That’s shall, not may. But getting the money has proven nearly impossible.

There are many whistleblowers but few are getting money out of the process. The IRS created a Whistleblower Office reporting to the IRS Commissioner to implement the law. But progress is slow.

Senate Finance Committee Ranking Member Charles Grassley (R-Iowa) can’t understand why the IRS Whistleblower Office has been slow to process cases and make rewards. In this press release, he expresses disappointment. He’s not the only one. Claims aren’t the problem, says the feisty Senator from Iowa. But unpaid whistleblowers are demoralized and might stop coming forward, he asserts.

It’s ironic – our government is worried about “demoralizing” whistleblowers, but doesn’t seem to be concerned about demoralizing the business owners and private citizens that provide the revenue necessary to keep this company running. While everyone would agree that tax fraud is a problem, the reality is that a huge percentage of filing mistakes are due to complex and ever-changing tax laws—not intentional fraud. Perhaps the IRS would be better served simplifying and clarifying their requirements—rather than paying whistle-blowers and cracking down on taxpayers who have made innocent mistakes.

If you’re dealing with an IRS nightmare, you have probably learned by now that the Service isn’t particularly interested in your well being. But there’s good news—you aren’t helpless. Contact us today and let us help you take the first step towards freedom from your IRS problems!