The Resource A primer for tax whistleblowers

A primer for tax whistleblowers

A primer for tax whistleblowers
A primer for tax whistleblowers
The first US statutory tax whistleblowing legislation was enacted shortly after the civil war in 1867. It allowed the government to pay awards to individuals who provided information that aided in detecting and punishing those guilty of violating tax laws. The original law provided the Secretary with the authority "to pay such sums as he deems necessary for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same." Before 1996, payments were made from appropriated funds. In 1996, the purposes for which awards could be paid were expanded, with the addition of "detecting underpayments of tax" as a basis for making an award. Also, the source of funds to pay awards was changed from IRS operating funds to proceeds of amounts collected from the taxpayer (other than interest). Before the 2006 amendments to Code Sec. 7623, awards to whistleblowers were discretionary, with the amount determined pursuant to IRS policy. Largely because the older version of the programme was not working well, and to close the tax gap, in 2006, Congress enacted legislation to streamline the programme, make it "informant-friendly," and put in place greater financial and more certain incentives to turn in noncompliant taxpayers. As a result of the substantial changes in the law, within a few months of creation of the Whistleblower Office (WBO) within the IRS, there has been a visible increase in number of reported tips and size of cases. The IRS started receiving claims alleging more than $2 million in underpayment of tax almost immediately after enactment of the amendments to Code Sec. 7623. This article provides an extensive primer for tax whisteblowers
Citation source
In: Taxes - the tax magazine. - Chicago. - Vol. 90 (2012),
  • West, R
  • Skarbnik, J.H
  • Brunetti, F.L
Geographic coverage
North America
Language note
  • disclosure
  • tax compliance
  • collection of tax
  • tax authorities
  • appeal
A primer for tax whistleblowers

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      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
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