2010 IRS whistleblower report

The IRS gave its 2010 report to Congress on the Use of Section 7623, more commonly known as the IRS Whistleblower Law. Some of its highlights include an increase in staffing in the department from 17 to 21 during fiscal year 2010. Additionally, the IRS has invested in a new software program. By July 2010, all 7623 claims had been loaded into the new system. The software captures the claim information from receipt, through the award determination process, should the claim reach that point. Nine of ninety-seven full paid claims in 2010 had collections greater than $2 million, but all were under the old Informant Award Program. Therefore, the IRS cannot yet predict what type of impact the 431 whistleblower submissions against 5,429 taxpayers they received in fiscal year 2010 will have. The report also made mention of the fact that Section 7623 does not provide for whistleblower protection. Retaliation is not prohibited under the Section and a potential whistleblower’s only recourse from retaliation would be under state laws.

For more information see:  http://www.irs.gov/pub/whistleblower/annual_report_to_congress_fy_2010.pdf