Legal News

IRS Pays Out First Award Under New Provisions of Whistleblower Program
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

In recent days, the IRS paid an accountant a $4.5 million award – the first under the new provisions of the Whistleblower Program – for finding an estimated $20 million of tax underpayment by his employer.

The Whistleblower Program was changed pursuant to section 7623(b) of the Internal Revenue Code, which was enacted on December 20, 2006.

The IRS Whistleblower Office opened in Washington, D.C. in early 2007.


The new IRS Whistleblower statute gives anyone with information about large-scale tax underpayments, including accounting errors or tax fraud up to 30% of any money collected based upon the information provided.

Tax Partner Scott A. Knott of The Ferraro Law Firm was quoted as saying in an April 8th press release at PR Newswire: “The case that resulted in an award yesterday took over three years to come to fruition, but because of how long it takes the IRS to audit and collect for a tax year, we advise clients that this is typically a 4-7 year process.”

Gregory S. Lynam, also a Tax Partner of the firm, was quoted as saying: “The IRS making good on Congress’s promise to pay for valuable information should also reassure potential whistleblowers with high quality information. Now the floodgates will open. The IRS could have a hard time handling all of the submissions they are going to receive.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The Government Accounting Office (GAO) estimates the difference between what taxpayers pay and what is actually owed is nearly $350 billion per year.


Interesting Legal Sites You May Like




Search Now

Mid to Senior Level Labor and Employment Attorney

USA-CA-San Francisco

San Francisco office is seeking a mid to senior level labor and employment attorney.

Apply Now

Litigation Lawyer


Somerset office of our client seeks litigation lawyer with experience.

Apply Now

Senior Trademark Attorney


Denver office of our client seeks senior trademark attorney with 7+ years of prosecution experience....

Apply Now

Mid-level Corporate Associate Attorney

USA-NY-New York City

New York City office of our client seeks mid-level corporate associate attorney with 3-5 years of ex...

Apply Now


Associate Counsel


Workers’ Compensation Insurance Rating Bureau of California (WCIRB) is seeking an Associate Co...

Apply now

Law Student Intern


2nd-3rd year law student. Must have interest in real estate law! Position will include the following...

Apply now

Associate Attorney


Small AV lawfirm in Baltimore County seeks an associate with a minimum of four years of experience i...

Apply now

Trusts & Estates Paralegal


Donahue Fitzgerald, a mid-sized full-service law firm, is seeking an experienced Paralegal...

Apply now


To Top