Since 2007 the IRS Whistleblower Program has helped recover $3.7 billion back to the U.S. Treasury, but there is still plenty of room for improvement.
Senator Grassley released a statement on the continued success of the IRS Whistleblower program:
One way to tell if your issues are hitting the mark is when they make it to the funny pages. I'm not sure we ever expected to see intellectual property transfer pricing tax fraud make it into the comics, however!
Source: Barney & Clyde.
U.S. Tax Court just gave a big win to whistleblowers in an IRS case dealing with “collected proceeds”. The opinion includes broad and sweeping definitions which includes criminal fines.
The IRS estimates the annual tax gap to be $406 billion, based on data from 2008-2010.
Wherever you go, there they are; misplaced priorities.
This is how they spend their enforcement resources in the UK.
The United States Tax Court considered a whistleblower-initiated case this week in which the IRS collected a Foreign Bank and Financial Accounts (FBAR) civil penalty “substantially in excess of $2,000,000 and a small amount of restitution."
One of the critical elements of the IRS whistleblower law (26 USC 7623) is the provision — (7623(b)(4)) — that allows the whistleblower to go to Tax Court for review of an IRS decision on their case. By providing that whistleblowers can go to Tax Court – Congress ensured that whistleblowers are not at the mercy of the IRS as to receiving an award.
The Taxpayer Advocate Service (TAS) has issued a report that says lack of IRS whistleblower communication is one of the most serious problems encountered by taxpayers. They urge the agency to revise regulations so administrative proceedings can start at an earlier date.