The 2012 IRS Whistleblower Report Is Out!

A quick summary:

  • In FY  2011, the IRS received 314 submissions identifying 734 taxpayers that, based on the face of the submissions, appear to meet the section 7623(b) criteria.  In FY 2012, the IRS received 332 submissions identifying 671 taxpayers that, based on the face of the submissions, appear to meet the section 7623(b) criteria.  (P. 7)
  • In 2011, the IRS whistleblower program brought in $48 million.  In 2012, the IRS whistleblower program brought in $592.5 million.
  • In FY 2011, the Whistleblower Office paid the first claims under section 7623(b).  Five claims have been paid under the revised law. “Taxpayer privacy laws do not permit the publication of data on specific claims.”
  • The number of payments made under the section 7623(b) program is not projected to grow dramatically in FY 2013.
  • As of Dec 10, 2012 , the IRS has received 1,449 submissions from 1,126 whistleblowers covering 10,043 taxpayers.  The status of these cases is reported on page 9 and 10 of the report.
  • At the beginning of FY 2012, the Whistleblower Office staff of 18 included ten analysts with decades of experience in a broad array of IRS compliance programs. In addition, the IRS Office of Chief Counsel has appointed a senior attorney to serve as Special Counsel to the Director of the Whistleblower Office. The Special Counsel provides legal advice to the Director and coordinates support that other Chief Counsel offices provide.
  • In January 2012, the Small Business/Self-Employed (SB/SE) Division transferred the Informant Claims Examination (ICE) Unit to the Whistleblower Office. This group of 13 employees is responsible for case management and administration of the discretionary award program under what is now section 7623(a).
  • In July and August 2012, the IRS modified the case management information system to incorporate additional data fields, and modify existing data fields, to capture information that will enhance our ability to manage claims and will allow data to be collected that can help assess Whistleblower Office and Operating Division performance.
  • The IRS whistleblower law does not provide for whistleblower protection. “Unlike other laws that encourage whistleblowers to report information to the government, section 7623 does not prohibit retaliation against the whistleblower.” (P. 14)
  • A share of criminal fines are not part of the awards process.

To view the report, please see:

Contact one of our

Experienced Attorneys

If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.