IRS Whistleblower Statistics

The latest report from the IRS Whistleblower Office shows that despite an increase in total claims awards paid under the7623(b)  program in FY 2016, the agency paid less in total monetary awards to whistleblowers.

  • The average number of days to process awards under the 7623(b) is 2,672, or 7.32 years.
  • Award dollars to whistleblowers as a percentage of the amounts collected increased to 17.8 percent from 16.6 percent.
  • Since 2007, information submitted by whistleblowers has assisted the IRS in collecting $3.6 billion in revenue and, in turn, the IRS has approved more than $499 million in monetary awards to whistleblowers.

chart

Download IRS Annual Reports from 2008-2017 here.

History of the IRS Whistleblower Program: 

The SEC’s whistleblower program went into effect on July 21, 2010, when President Obama signed into law the “Dodd-Frank Wall Street Reform and Consumer Protection Act.”

IRS Whistleblower Program Case Study:

The IRS has settled several dozen cases under the IRS whistleblower law passed in 2006, but few of those cases have been made public.  One case that was, the first case, which was settled for $20 million.  The whistleblower in that case was an in-house Certified Public Accountant and auditor who discovered a $20 million-plus tax liability at a large national financial services firm. The accountant reported the liability internally to his Fortune 500 company, but they declined to report the liability to the IRS, and ignored his admonitions to do so.

The whistleblower in this case filed IRS Form 211 with the new IRS Whistleblower Office without benefit of counsel, but after more than two years had passed, and no IRS response had been received despite numerous inquiries, the whistleblower contacted an experienced whistleblower attorney. That attorney discovered that the IRS had lost the original filing and, as a consequence, the whistleblower had never received a “Claims Number” for the original Form 211 filing.  The whistleblower and his attorney resubmitted the original case documents and information to the IRS, and the attorney helped demonstrate to the IRS Whistleblower Office how instrumental the whistleblower had been in both making, and advancing, the case.

In the end, the whistleblower was awarded $4.5 million award for his assistance and information.