How the IRS Whistleblower Statute Which Resulted in the 104 Million Dollar Reward Works

Bradley Birkenfeld collected $104 million dollars minus taxes, for revealing the tax evasion of wealthy Americans holding moneys in foreign accounts. The whistleblower law that was passed by Congress allows the IRS to pay such bounties to individuals who provide information to the IRS of tax underpayments. However to qualify, the whistleblowers must provide information about tax fraud or underpayments that exceeds $2 million (counting tax panalties and interest). The annual income of the tax cheater must exceed $200,000 (it CAN be a corporation). The whistleblower may receive between 15 to 30% of the amount the IRS collects as a result of information about tax fraud provided to the IRS. Uniquely, under this statute, the IRS may keep the whistleblower’s identity confidential. The IRS pays awards only after it completes an investigation into the tax fraud or underpayment and collects the amounts owed. The $104 Million award to Mr. Birkenfeld is considered a signal of growing interest by the IRS and Congress in recoverings moneys which individuals and corporations should have paid. Attorney Jeffrey A. Newman represents whistleblowers including IRS whistleblowers.