How to Be a Tax Whislteblower

                 Looking for an interesting part time job? Consider becoming a federal tax whistleblower. The feds have had a statute for years that provides for payment to people who kindly supply information that results in collected taxes. Before 2006 there was a real question whether any payment was being made to a whistleblower as such payments were discretionary by the Internal Revenue Service. However in that year section 7623(b) was amended to make payment mandatory when certain standards are met. Information supplied is given under penalties of perjury and must meet a tax floor before IRS will be interested. However, if qualified, a whistleblower can go home with 15 to 30% of the amount of taxes collected. IRS has created a separate whistleblower office which is unfortunately only staffed by thirty or so employees. Recently 28,000 claims were filed so this may be a part-time job where payment will not be made for a number of years. This is not only due to the short handedness at the whistleblower office but the statute itself which requires that the time period for all appeals have passed for the taxpayer with regard to the collected taxes. So the wait for the big pay back for the whistleblower could be 6 to 7 years or longer. Well, if you’re interested in getting started see Form 211. If the whistleblower has shared or participated in any scheme like the one he’s divulging his chances of success are nil. Should IRS deny the claim the whistleblower can go to the United States Tax Court for review. Lawyers who are contacted by whistleblowers should realize that simply insinuating that wrongdoing has occurred will not be enough. Doing as much investigation as is possible and verifying statements to be supplied to the IRS will be necessary. Submitting the form 211 without backup is almost a guarantee that it will not be accepted. By the way, the state of New Jersey also maintains a whistleblower statute but it does not provide for payment to anyone. New York on the other hand has a statute similar to the federal where payment of 15 to 20% can be made. But motivation for the whistleblower can sometimes be revenge rather than money. It is said that New Jersey examines all whistleblower allegations.