IRS Whistleblowing Program

The IRS Whistleblower Program, codified at 26 U.S.C. § 7623(b), provides whistleblower incentives for those who report information of tax fraud. The law applies in cases where, in the case of corporations, the amount in dispute exceeds $2 million, and, in the case of individuals, the individual’s gross income exceeds $200,000 for the given tax year. Those who bring evidence of any underpayment of taxes are entitled to between 15 percent to 30 percent of the unpaid taxes, interest, and penalties that the IRS collects as a result of the information. That number can be adjusted downward to 10 percent where the whistleblower is not an original source of information and gets the evidence from public records or the news media.