WASHINGTON, D.C. — The Internal Revenue Service is encouraging individuals with credible information about tax fraud to come forward after whistleblower tips helped the agency recover more than $8 billion since the program’s inception in 2007, the agency announced in conjunction with National Whistleblower Day.
Observed annually on July 30, National Whistleblower Day commemorates the nation’s first whistleblower law, enacted in 1778, and recognizes individuals who report misconduct. According to the IRS, the whistleblower program has also paid more than $1.4 billion in awards to eligible individuals whose information led to successful enforcement actions.
IRS Chief Executive Officer Frank J. Bisignano credited whistleblowers with helping identify tax noncompliance that might otherwise go undetected.
“Historically, whistleblowers have played an essential role in tax administration by calling attention to problems others have overlooked,” Bisignano said. “Information provided by whistleblowers helps the IRS identify noncompliance, pursue enforcement actions, and ensure fairness for taxpayers who follow the law.”
The IRS reported that it has expanded several tools over the past year to simplify the reporting process and improve collaboration with whistleblower program stakeholders. Those efforts include launching a digital version of Form 211, the application used to seek a whistleblower award, and a centralized online reporting tool that provides step-by-step guidance for reporting tax fraud and scams.
The agency also expanded its Whistleblower Alert initiative to highlight emerging abusive tax schemes and continued collaborating with practitioners, advocacy organizations and international tax authorities, including the United Kingdom’s tax whistleblower program.
Acting IRS Whistleblower Office Director Erick Martinez said National Whistleblower Day recognizes the role tipsters play in tax enforcement.
“Their efforts make our tax system stronger by exposing wrongdoing and deterring bad actors,” Martinez said. “Their tips provide the IRS with information the agency would not otherwise know about, potentially increasing collections, and improving tax compliance.”
The IRS Whistleblower Program, administered under Section 7623 of the Internal Revenue Code, encourages individuals to report major tax evasion, fraud and underpayment. The agency said the strongest submissions include specific, timely and credible information supported by documentation.
For qualifying cases involving more than $2 million in taxes, penalties and interest—and taxpayers meeting certain income thresholds—federal law generally provides mandatory awards ranging from 15% to 30% of the proceeds ultimately collected. Smaller or discretionary claims are handled under separate statutory provisions.
Awards are paid only after audits, collections and any legal appeals are complete, a process that can take several years. While anonymous claims are not accepted, the IRS said federal law requires the agency to protect a whistleblower’s identity to the fullest extent possible.
Additional information about the program, including Form 211 and reporting instructions, is available through the IRS Whistleblower Office at IRS.gov.
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